3 reasons why Woori Finance is a hot stock right now

It’ll benefit big time from turning around fundamentals.

According to Macquarie Equities Research, it likes Woori Finance Holdings (WFH) as it believes the stock is a leverage play to up-cycle of the sector.

WFH trades at 6.6x 2013E P/E (vs. peak of 26x and trough of 3.5x) and 0.5x P/B (vs. peak of 1.6x and trough of 0.3x). We believe that WFH would be the biggest beneficiary from turning around fundamentals.

First, WFH has the biggest exposure to property related NPL, which is likely to recover from a potential turnaround in the property market.

Second, given continuous restructurings led by the government, WFH has reported higher credit costs than its peers and does not require further regulatory provisioning, which would provide upside risks to the group's earnings in 2013.

Third, WFH has the smallest exposure to the credit card business, where we see a meaningful decrease in merchant fees from 2013.
Hence, WFH would be much less affected by the change. Our price target is Won16,000 based on a PBR methodology, which represent 8.5x 2013E P/E and 0.7x P/B.

Also Read

Taiwan banks show stable asset quality

Filipinos collectively spent 42 years on digital lending apps in 2023

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit

Top News

What is Lorem Ipsum?

What is Lorem Ipsum? Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Evergreen Group obtains financing license to expand in Malaysia