Hanjin Group’s new management scheme has shown its will to promote shareholder values, and investor sentiments for its affiliates will improve, said Korea Investment and Securities on Feb. 14.
Taking into account the possibility of confrontation in March’s general shareholders meeting, the decision has accepted some of KCGI’s requests, such as increasing non-executive directors and selling idle assets, said analyst Choi Go-un forecasting that additional shareholder-friendly efforts will be made.
Its affiliates have been undervalued mainly due to vulnerable financial structure and group-related issues, which makes this announcement more meaningful. Risks are low as valuations are low while profit momentum from its main business remains firm, explained the analyst, recommending to purchase stocks of its affiliates, in particular that of Korean Air.
By Hwang You-mee (email@example.com)