[Edaily Reporter Lee Hye-ra] BlackRock, the world’s largest asset manager, recently acquired stakes of over 5% in #Hankook Tire & Technology, #Yuhan Corporation, and #Hankook Financial Group, becoming a major shareholder in each. Market attention is focused on this move as it signals an expansion of investment in stocks where valuation appeal is coming to the fore.

According to electronic disclosures by the Financial Supervisory Service on the 9th, BlackRock reported new holdings of 5.21%, 5.07%, and 5.11% in Hankook Tire, Yuhan Corporation, and Korea Financial Holdings, respectively, as of the previous day. The purpose of holding these three stocks was stated as “pure investment” in all cases.
Looking at the details, it appears that funds managed by BlackRock either newly purchased or added to their holdings of these stocks on the 28th and 29th of last month.
The market is taking note of the fact that the world’s largest asset manager has collectively added stocks where the appeal of undervaluation is highlighted. There is an assessment that, even amid the recent steep rise in the domestic stock market, BlackRock has selectively invested in companies whose stock prices are low relative to earnings or that are expected to show mid- to long-term growth.
A researcher at a securities firm said, “Although the three stocks belong to different sectors, they share the common trait of having solid fundamentals while not carrying significant valuation burdens,” adding, “From the perspective of global long-term capital, they can be viewed as attractive investment opportunities.”
Hankook Tire is drawing attention for its steady earnings trend. The securities industry expects this upward trend in earnings to continue into the second quarter of this year. The operating profit margin for the company’s core tire business is projected to reach around 16% in the second quarter, following 17% in the first quarter. This is described as a high level even when compared to major global tire manufacturers.
In addition, the securities industry cites the following as investment highlights for Hankook Tire: △expectations for shareholder returns, such as the first-ever interim dividend, and △the potential for further price hikes.
Yoo Ji-woong, an analyst at Daol Investment & Securities, stated, “Hankook Tire’s stock price is excessively undervalued, trading at a level approximately 62% below this year’s KOSPI relative return,” adding, “A meaningful revaluation is expected based on earnings improvements and strengthened shareholder returns.”
Yuhan Corporation is cited as a leading stock whose valuation pressure has eased due to recent price adjustments. Yuhan Corporation’s stock price has fallen by about 30% since the beginning of the year. Analysts attribute this to factors such as earnings that fell short of expectations due to a lack of short-term momentum. In fact, Yuhan Corporation’s first-quarter revenue this year reached 526.8 billion won, a 7.2% increase year-over-year, while operating profit rose 37.3% to 8.8 billion won. However, operating profit fell short of market expectations of 22.1 billion won because revenue from technology exports to Europe, estimated at around 40 billion won, was not reflected in the results.
Nevertheless, the securities industry maintains expectations for improvement at Yuhan Corporation in the second half of the year. Positive assessments continue, with KB Securities recently initiating coverage and Kiwoom Securities designating the stock as a top pick.
Heo Hye-min, an analyst at Kiwoom Securities, stated, “Various momentum drivers are on the horizon for the second half, including the release of overall survival (OS) data for the Lecraza combination therapy, the technology transfer of an allergy treatment, and improvements in the product mix driven by expanded active pharmaceutical ingredient (API) supply,” She added, "Since these expectations do not appear to be fully reflected in the current stock price, a resilient rise in the share price is likely when positive developments occur."
Korea Financial Holdings is drawing attention for its earnings growth driven by the securities industry boom and expectations of a turnaround in its non-securities subsidiaries. While its core subsidiary, Korea Investment & Securities, continues to post solid earnings, the recovery in profitability of its savings bank and capital divisions is also cited as a positive factor.
Ahn Young-jun, an analyst at Kiwoom Securities, commented, “The company is demonstrating solid fundamentals by consistently posting earnings that exceed market expectations,” and assessed, “As it has been actively raising funds since receiving approval for Integrated Investment Accounts (IMA), it is well-positioned for further improvements in profitability.”