■ Market Review

On Oct. 27 12:55 P.M., SK Materials (036490) increased 3.21% to 154,500 won (US$135). It had declined 1.53% through the past month. Standard deviation, which indicates volatility of stock, records 2.2% on the same period over one month.

Compared with its close competitors within the same industry, KOSDAQ, the investment return of SK Materials was satisfactory among its peer group and its volatility for 1 month was also proper. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was -0.6%. Though the decline rate of stock price declined, the return-on-risk remain high. Moreover, compared with the KOSDAQ industry, the return-on-risk is much better than the industrial mean, -7.6, and thus the industrial comparison performance was positive.

Comparing industry to the market, the KOSDAQ industry including SK Materials records lower volatility and earning rate than Semicon. In other words, the industry was safer and the rate of decrease is smaller than that of the market.

Close Competitors Earning rate (%) STD (1Mo) Return on Risk (1Mo)
1 Mo 3 Mo 6 Mo
EO Technics(039030) 3.2% -37.4% -44.1% 2.8% 1.1
WONIK IPS(240810) -9.2% -10.0% % 2.8% -3.2
SK Materials(036490) -1.5% 9.8% 24.6% 2.2% -0.6
SSC(046890) -5.0% -17.5% -6.8% 2.1% -2.3
LEENO(058470) -6.9% -0.1% 3.5% 1.4% -4.9
Semicon -4.4% -7.5% -8.9% 1.2% -3.6
KOSDAQ -6.1% -6.0% -8.3% 0.8% -7.6

Target price 197,600 won, has 27% disparate to increase compared with stock price. Per analysts' expectations during the recent month, the average target price of SK Materials is 197,600 won. The stock price is 154,500 won as of yesterday, so there is 43,100 won (27%) disparate in order to be able to increase.

■ Earnings & Valuation

SK Materials(036490): 3Q(July ~ Sept) of 2016 Earnings (reported at Oct. 17. 2016)
Revenue Operating Income Net Income
3Q of 2016 1,237.0 T 406.5 T 270.2 T
Previous Quarter 6.2% increase 4.7% increase 1.0% increase
YoY 36.5% increase 25.1% increase 25.6% increase

■ Investor Group

Institutions and Individuals buy, Foreigners sell From Oct. 21, Foreigners have been continously buying SK Materials during the past 4 trading days. As a shareholding sum by investor group for the past 4 weeks, Institutions have bought 12,808 shares in spite of lowered the position recently and Individuals have bought 6,963 shares changing stance to buying from selling. However, during the same period, Foreigners have sold 19,771 shares .

Turnover Rate and Price Range both proper Regarding the statistics for the past month on trade volume as the total outstanding shares, the daily turnover rate of SK Materials was 0.4%. And the daily volatility, the average range of rise and fall, during the same period is 2.07%.

Institution 32.92%, Foreigners 21.7% As per the inquiry for shareholding by investor group, the major investor group is individuals with 45.37% from total outstanding shares. Institutions and foreigners each hold 32.92% and 21.7%. And as recent 5-day shareholding change by investor group, individuals is the major investor group with 44.89%. Institutions hold 31.11% and foreigners hold 23.98%.

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