■ Market Review

On Oct. 24,LS (006260) increased 2.62%, compared with yesterday, to 58,700 won (US$51.80). It had declined 2% through the past month. Standard deviation, which indicates variableness, records 1.8% over the same period of time over one month.

Compared with its close competitors within the same industry, KOSPI, LS was not only satisfactory in investment return among its peer group, but its volatility was also relatively good. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was -1.1%. In spite of stock price decline, low volatility lead the return-on-risk to a high level. However, compared with the KOSPI industry, the return-on-risk is below the industrial mean, -0.3, and thus the industrial comparison performance was not so good.

Close Competitors Earning rate (%) STD (1Mo) Return on Risk (1Mo)
1 Mo 3 Mo 6 Mo
CJ CGV(079160) -17.8% -26.1% -32.3% 2.1% -8.4
GKL(114090) -8.4% -8.8% -14.6% 2.0% -4.1
HANKOOK TIRE WORLDWIDE(000240) -3.5% 6.3% -6.6% 1.9% -1.8
LS(006260) -2.0% 10.6% 17.6% 1.8% -1.1
Cheil Worldwide(030000) 5.2% -7.7% -4.4% 1.7% 3.0
Services -1.9% -1.7% -1.2% 0.8% -2.3
KOSPI -0.2% -0.6% 1.3% 0.6% -0.3

■ Earnings & Valuation

LS(006260): 2Q(Apr ~ June) of 2016 Earnings (reported at Aug. 17. 2016)
Revenue Operating Income Net Income
2Q of 2016 24,163.1 T 1,078.0 T 571.3 T
Previous Quarter 0.1% decline 18.5% decline 27.8% decline
YoY 5.5% decline 87.3% increase turn to profit

Financial structure Overview

Compared with 4 close competitors with similar market capitalization within its industry, while LS's P/E ratio, a price-paid ratio of annual net income, is in the highest level, its P/B ratio, a financial ratio of a company's book value, is at the lowest level.

P/E ratio and P/B ratio

Close Compatitors ROE PER PBR Basic Date
LS(006260) 1.9 32.0 0.6 June 2016
GKL(114090) 20.1 15.0 3.0 June 2016
Cheil Worldwide(030000) 9.2 26.1 2.4 June 2016
HANKOOK TIRE WORLDWIDE(000240) 8.3 8.9 0.7 June 2016
CJ CGV(079160) 5.3 30.6 1.6 June 2016

■ Investor Group

Individuals and Foreigners buy, Institutions sell Yesterday, institutions bought 13,783 shares, while foreigners sold 14,563 shares. As a shareholding sum by investor group for the past four weeks, foreigners have bought 106,617 shares with a maintenance of shareholding and individuals have bought 845 shares lessening its position. However, during the same period, institutions have sold 107,462 shares with a selling trend.

Cumulated shareholdings per investor group (1Mo) Total shareholdings per investor group

* Other Investor groups, included as "other corporations", are considered as "Individuals".

By HeRo (hero@heraldcorp.com)

This article is produced by the algorithm developed by the artificial intelligence developer ThinkPool in collaboration with Herald Corp.