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Stock impact report

KB Financial: The Kospi Rally Might Be Over, And Results Could Be More Tame [Seeking Alpha]

KB Financial Group Inc (KB) 
US:NYSE Investor Relations: kbfg.com/eng/ir/main/ir_main.jsp
Company Research Source: Seeking Alpha
Despite a 16.6% YoY net profit increase, much of KB's recent growth is non-recurring, driven by exceptional Kospi index performance and non-operating income. KB trades below book value, indicating potential upside of 29% to 1x (or even 59% upside to the international sector mean). However, it is 37% above the historical average. Risks include competition, regulation, and macroeconomic factors, but KB maintains a strong competitive position and benefits from recent interest rate trends. I expect 9% upside based on a residual earnings model, factoring in a somewhat optimistic growth rate in a poor demographic growth environment. leolintang/iStock via Getty Images Thesis I'm rating KB Financial Group ( KB ) as a Hold, as I expect just 9% upside based on a residual earnings model and relative valuation. Right now, it's trading at 0.76 price/book, which may be considered "cheap" by most of us, but This article was written by Analyst's Disclosure: I/we have no stock, option Show less Read more
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