KB Kookmin Bank has announced its participation as a title sponsor in co-hosting SMTOWN LIVE 2023 with SM Entertainment in Jakarta, Indonesia. The event, called "SMTOWN LIVE 2023 SMCU PALACE @JAKARTA with KB Bank," will be held on September 23 at the Gelora Bung Karno Main Stadium and is expected to attract around 50,000 attendees. The bank aims to increase brand recognition in the Indonesian market through its involvement in this concert. Additionally, Bank KB Bukopin, a subsidiary of KB Kookmin Bank, will also participate as a local sponsor. This concert is significant as it celebrates the 50th anniversary of diplomatic relations between Korea and Indonesia and aims to promote friendship and harmony between the two countries. Popular K-pop artists from SM Entertainment, including TVXQ, Super Junior, Red Velvet, NCT 127, NCT DREAM, WayV, aespa, and a new male group set to debut in September, will deliver exclusive performances at the event.
On a separate note, the author, an analyst for NH Investment & Securities, has revised the valuation method for POSCO Future M, resulting in a raised target price of W560,000. However, the rating is downgraded to Hold due to limited upside potential. The change in valuation method takes into account the increase in mid/long-term supply contracts, as well as the rise in electrification competition among clients. The revision of capacity and earnings forecasts for the firm has led to a more positive outlook for its performance in 2030. The DCF valuation method, which considers changes in the company's business environment, is believed to accurately reflect these improvements. The fair market cap is estimated at W44tn, with a target price of W560,000. This corresponds to a 2025F EV/EBITDA of 35x, which is a premium compared to competitors and the industry average.
In terms of recent performance, POSCO Future M reported sales of W1.19tn in 2Q23, representing a year-on-year increase of 48% and a quarter-on-quarter increase of 5%. However, it missed consensus expectations by 6%. The basic materials business showed expected recovery, but the growth of the energy materials business, specifically cathode and anode, was slower than predicted. Cathode sales reached W786.3bn, with a 17% increase in average selling price and a 7% decrease in shipments due to sluggish European demand. Anode sales amounted to W58.1bn, experiencing a decline of 15% year-on-year and a 3% increase quarter-on-quarter. Weak European demand affected shipments in this segment. The company plans to improve its utilization rate through new long-term contracts and aims to recover shipments in the third quarter with increased supply to Ultium. The basic materials operating profit showed improvement, reaching W14.6bn and recovering to pre-flood levels.