KB Securities raises target prices for holding companies including SK and LG5saw their target prices raised
KB Securities raised its target prices for holding companies including SK, LG, LS, Hanwha and CJ5companies. It expects the discount to net asset value to narrow further as policies to protect minority shareholders continue.
![KB Securities raises target prices for holding companies including SK and LG5saw their target prices raised/blog-images/gen-57061125-9397-48b5-a2df-2b2453381f39.jpg)
A securities firm has said that the revaluation of domestic holding company shares is not yet over. KB Securities researchers Park Geon-young and Kim Jun-seop18said in a report that the policy trend of protecting minority shareholders would continue this year. The report said this trend could continue to affect holding company share prices.
The report noted that holding company shares200had risen by approximately. Holding companies are companies that own multiple subsidiaries. How much of the subsidiaries’ value is reflected in a holding company’s share price is an important consideration.
KB Securities forecast that the discount to net asset value (NAV) could narrow further. Net asset value refers to the value of a holding company’s assets minus its debt. A narrower discount means that more of the subsidiaries’ value is reflected in the holding company’s share price.
The report concluded that the policy momentum remains in place. It said that continued policies to protect ordinary shareholders could ease the conflicting interests among controlling families, related parties and ordinary shareholders. Lack of transparency in corporate governance was cited as a factor behind holding company discounts.
KB Securities raised its target prices for holding companies including SK, LG, LS, Hanwha and CJ.5It raised the target prices of all the holding companies. The analysts expected subsidiary value to be fully reflected in holding company share prices and the discount to net asset value to narrow. The report noted a broad re-rating trend among holding companies.
The analysis brought together policies to protect ordinary shareholders, the reflection of subsidiary value and expectations for improved corporate governance. It also maintained the view that a re-rating of holding company shares is under way. The companies covered are SK, LG, LS, Hanwha and CJ.
Sources: 연합인포맥스
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.