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Disclosures & Disclaimer
This report must be read with the disclosures and the analyst certifications in
the Disclosure appendix, and with the Disclaimer, which forms part of it.
Issuer of report: The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch
View HSBC Global Research at:
https://www.research.hsbc.com
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Improving sentiment on Korea tech given better Samsung
earnings trend and memory and panel price rebound
Long-term positive view on 3D NAND and OLED market
given massive technology transition intact
We reiterate our positive view on Korea semi and OLED
makers; Prefer Samsung, an HSBC Asia Super Ten/GEMs
Super 15 portfolio stock
Improving sentiment on Korea tech. During our Asia marketing this week (11-14
July), most investors expressed improved sentiment on Korea tech as Samsung
continues to print better earnings than expectation. Recent memory spot price and
LCD panel price rebounds are additional catalysts on top of OLED growth from faster
smartphone adoption. However, interest on OLED supply chain looks to cool down as
major equipment orders were out already. Investors expressed more interest on
memory equipment stocks. Main focus was the catalysts for DRAM turnaround, and
we highlighted that 1) PC to mobile capacity conversion, 2) slim inventory at PC-OEM
and 3) strong contents growth at smartphone/server are driving DRAM shortage amid
better PC shipment outlook in 2016. We also noted that this upcycle will continue due
to 1) steep capex decline in 2016 and 2) slower DRAM migration.
Sustained growth in 3D NAND and OLED: Investors raised potential oversupply
concerns in 2017 given surging capex in 2016, but we think secular demand growth
should boost the 3D NAND and OLED markets. Solid state disk (SSD) should grow
17% CAGR in 2015-2018e to KRW16bn (45% of NAND market), and HDD to SSD
transition at both enterprise and notebooks should also be a key growth driver.
Market share competition among enterprise storage solution makers through SSD
based solution is a key catalyst since total cost of ownership (TCO) for SSD based
solution is far lower than that of HDD. Also, faster OLED adoption in China after
OLED module price parity over LCD is another catalyst. We forecast OLED adoption
for global smartphones to reach 43% by 2018 from 14% in 2015, boosting panel
demand. We see LGD also benefiting from 2017 as Chinese makers start to diversify
panel suppliers. Moreover, we think OLED supply chain is likely to continue to be
attractive for investors since it is at early stage of growth.
Positive on Korea large cap tech stocks: We prefer Samsung Electronics, as its
smartphones are regaining traction with GS7 Edge and showing better earnings. We
think its components should show strong growth in 2H as well as improved
shareholder return policy. Also, we like SK Hynix and LGD given strong memory and
panel price expectation through industry wide capacity conversion. Steep margin
improvement in OLED TV from yield improvement is an additional catalyst for LGD.
We also like 3D NAND and OLED equipment makers, Wonik IPS and SFA
Engineering given the steep increase in capex implementation in 2016-2017. The
OLED supply chain should remain attractive for investors as the OLED adoption ratio
still seems low at 21% in 2016.
15 July 2016
Ricky Seo*
Semiconductor Analyst
The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch
+822 37068777
Jerry Tsai*
Analyst
HSBC Securities (Taiwan) Corporation Limited
+8862 6631 2863
Kenneth Shim*
Research Associate, Tech/Semiconductor
The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch
+822 3706 8779
* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations
Korea Tech EQUITIES SEMICONDUCTOR/OLED
Korea
Asia marketing feedback: Improving sentiment on Korea tech
EQUITIES SEMICONDUCTOR/OLED
15 July 2016
2
DRAM cycle is bottoming out and far more stable than historical pattern
Source: WSTS, HSBC
Recent global PC shipment growth estimate changes from HSBC’s analyst Jenny Lai
Samsung’s DRAM bit growth estimate changes
Source: IDC, HSBC estimates See Jenny’s report Upside surprise in 2Q16 global demand 12 July 2016
Source: Company data, HSBC estimates
Enterprise storage solution, SSD, and HDD market size trend
Enterprise solution market share by company
Source: IDC, HSBC Source: IDC
-100%
-50%
0%
50%
100%
150%
200%
-
1,000
2,000
3,000
4,000
5,000
Jan-91 Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Jan-15
(USD mn) DRAM revenue (LHS) y-o-y DRAM revenue growth (RHS)
-9.8%
-2.1%
-10.6%-7.3%
0.8%
-10.2%
-0.8%
-20%
-10%
0%
10%
2013 2014 2015 2016e 2017e
New global PC shipments growth assumption (July 2016report)
Previous PC shipments growth assumption (Apr 2016report)
23%
56%
30%
24% 23%
25% 25%
10%
20%
30%
40%
50%
60%
2013 2014 2015 2016e 2017e
New Samsung DRAM bit growth assumption (July 7th,2016 report)Previous Samsung DRAM bit growth assumption (June11th, 2016 report)
0
10
20
30
40
50
2012 2013 2014 2015
Enterprise storage solution marketSSD marketHDD market
(USD bn)
20% 20% 21%22%
17%19% 18%
22%
16%
0%
5%
10%
15%
20%
25%
30%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
EMC HPE Dell IBM NetApp
3
EQUITIES SEMICONDUCTOR/OLED
15 July 2016
Global OLED adoption in smartphone is accelerating
Flexible OLED capacity to reach 196k panel per month by 2018e from 32k in 2015
Source: HSBC estimates Source: IHS, HSBC estimates
DRAM capex to decline by 18% y-o-y in 2016e led by Korean players
NAND capex to increase by 9% y-o-y in 2016e
Source: Company data, HSBC estimates Source: Company data, HSBC estimates
10%14%
21%
34%
43%
0%
20%
40%
60%
2014 2015 2016e 2017e 2018e
Global OLED smartphone adoption portion
4 26 42
102
159
3 6 7
15
37
9 54
125
298
492
(200)
0
200
400
600
0
50
100
150
200
250
300
350
2014 2015e 2016e 2017e 2018e
LGD flexible panel capacity; LHSSDC flexible panel capacity; LHSFlexible smartphone production capacity (5.2" equiv.); RHS(k sheets/ month; 6G equiv.)
196
117
4832
12.2
6.1
11.9
8.7
5.9 7.2
12.0 12.7 10.5
-43%
-50%
94%
-27% -32%
23%
67%
6%
-18%
-400%
-200%
0%
200%
0
5
10
15
20
25
30
2008 2010 2012 2014 2016e
DRAM capex y-o-y %(USD bn)
6.0
3.0
7.2
9.3 7.7 7.6
8.8 9.5 10.4
-18%-49%
137%
29%
-17% -2%
16% 7% 9%
-300%
-150%
0%
150%
0
5
10
15
20
2008 2010 2012 2014 2016e
NAND capex y-o-y %(USD bn)
EQUITIES SEMICONDUCTOR/OLED
15 July 2016
4
Global peer comparison
Company Ticker HSBC 15-July
price Market
cap ____ PB(X)_____ __ ROE(%) ____ EV/EBITDA(x) _ ___ PE(x) _____ EPS growth (%) Rating (local) (USDm) 16e 17e 18e 16e 17e 18e 16e 17e 18e 16e 17e 18e 16e 17e 18e
OLED smartphone SAMSUNG ELECTRONICS 005930 KS Buy 1,518,000 191,538 1.2 1.0 1.0 12.5 12.7 12.3 2.4 1.9 1.5 9.5 8.6 8.1 23.0 10.5 6.4 LG ELECTRONICS INC 066570 KS Reduce 55,600 8,030 0.8 0.8 0.7 4.7 5.0 5.2 3.4 3.2 2.9 17.8 16.0 14.5 351.5 11.4 10.7 APPLE INC AAPL US 99 541,115 4.1 4.2 3.8 39.1 36.6 31.7 5.4 5.4 5.2 11.0 12.0 11.0 40.7 -9.8 9.4
OLED TV SAMSUNG ELECTRONICS 005930 KS Buy 1,518,000 191,538 1.2 1.0 1.0 12.5 12.7 12.3 2.4 1.9 1.5 9.5 8.6 8.1 23.0 10.5 6.4 LG ELECTRONICS 066570 KS Reduce 55,600 8,030 0.8 0.8 0.7 4.7 5.0 5.2 3.4 3.2 2.9 17.8 16.0 14.5 351.5 11.4 10.7 PANASONIC CORP 6752 JT 986 22,806 1.2 1.1 1.0 8.6 10.0 11.1 3.7 3.3 3.1 14.1 11.3 9.7 -10.7 25.2 16.1 HAIER ELECTRONICS 1169 HK 13 4,827 1.9 1.6 1.4 17.2 16.1 14.5 6.8 6.1 5.9 11.5 10.5 10.1 0.4 9.1 4.0
OLED panel SAMSUNG ELECTRONICS 005930 KS Buy 1,518,000 191,538 1.2 1.0 1.0 12.5 12.7 12.3 2.4 1.9 1.5 9.5 8.6 8.1 23.0 10.5 6.4 LG DISPLAY 034220 KS Buy 28,900 9,126 0.8 0.7 0.6 7.9 9.1 8.7 4.8 4.4 4.6 10.3 8.2 7.9 -1.2 25.3 3.5 JAPAN DISPLAY 6740 JT 192 1,088 0.3 0.3 0.3 1.0 2.1 2.6 1.2 1.1 1.1 28.6 12.5 16.5 251.2 128.7 -24.3
OLED equipment SFA ENGINEERING 056190 KS Buy 57,200 906 1.8 1.5 1.3 14.7 17.0 14.7 6.7 5.2 4.7 10.3 7.9 8.0 215.1 30.6 -2.0 WONIK IPS 240810 KS Buy 22,600 823 4.4 3.3 2.5 22.6 28.6 26.7 10.3 6.4 4.8 21.6 13.1 10.6 N/A 64.7 23.2 AP Systems 054620 KS 17,700 400 3.0 2.4 1.9 20.7 23.9 21.9 13.1 8.8 5.9 17.3 11.7 9.9 185.8 48.3 18.1 TERA SEMICON 123100 KS 25,950 229 3.0 2.3 1.7 23.8 29.3 30.5 8.7 5.8 4.8 14.4 8.9 6.3 547.8 62.2 40.7 VIATRON 141000 KS 25,150 268 3.1 2.4 1.9 25.0 27.4 23.2 9.9 7.2 7.2 14.2 10.0 9.2 155.6 41.9 8.7 JUSUNG ENGINEERING 036930 KS 9,740 415 3.4 2.8 2.3 26.7 26.3 21.9 10.2 8.3 7.9 14.0 11.7 11.0 201.4 19.5 6.0 APPLIED MATERIALS AMAT US 26 28,427 4.3 3.9 3.5 23.5 31.2 35.6 11.7 10.4 9.2 17.0 13.9 12.4 29.9 22.5 12.4 ULVAC 6728 JT 3,100 1,442 1.9 1.5 1.3 17.7 24.0 21.3 7.2 6.0 6.0 10.7 8.8 8.6 100.5 21.3 2.9 TOKYO ELECTRON 8035 JT 8,762 13,645 2.4 2.2 2.0 15.1 15.5 15.4 8.4 7.9 7.5 16.6 15.0 13.9 17.5 10.8 7.9
OLED material DUK SAN NEOLUX 213420 KS Buy 28,700 304 2.9 2.3 1.8 12.9 23.6 21.3 15.3 7.1 5.5 23.9 10.8 9.6 565.9 120.5 12.8 WONIK MATERIALS 104830 KS Buy 63,900 349 1.7 1.5 1.3 14.9 15.9 15.2 6.7 4.7 3.6 12.6 10.2 9.2 44.0 24.1 10.4 UNIVERSAL DISPLAY OLED US 69 3,241 6.4 5.3 4.4 6.5 13.0 19.0 30.2 22.7 19.2 63.8 45.9 32.6 -0.6 38.9 40.8 SKCKOLONPI 178920 KS 11,200 290 1.4 1.3 1.2 11.2 13.1 12.3 7.3 6.1 6.3 13.2 10.3 10.2 14.8 28.8 1.2 MERCK & CO MRK US 60 165,113 4.0 4.0 4.0 23.6 24.7 27.8 11.9 11.5 11.6 16.0 15.9 14.7 4.1 1.2 8.0 UBE INDUSTRIES 4208 JT 182 1,822 0.7 0.7 0.6 7.4 8.4 7.9 5.5 5.2 5.1 9.3 7.9 7.5 -4.9 18.3 4.8 IDEMITSU KOSAN 5019 JT 2,001 3,018 0.6 0.5 0.5 10.8 9.7 9.6 6.7 6.3 6.1 5.8 5.5 5.1 328.5 6.0 8.1
Memory SAMSUNG ELECTRONICS 005930 KS Buy 1,518,000 191,538 1.2 1.0 1.0 12.5 12.7 12.3 2.4 1.9 1.5 9.5 8.6 8.1 23.0 10.5 6.4 SK HYNIX 000660 KS Buy 32,700 21,009 1.0 0.9 0.9 9.0 11.4 11.4 3.1 2.5 2.2 11.9 8.6 8.0 -53.9 38.1 8.6 MICRON MU US 13 13,800 1.1 1.1 0.9 -1.6 4.1 7.3 5.6 4.6 3.9 N/A 24.1 10.2 TTR TTB 136.5 NANYA 2408 TT 40 3,469 1.5 1.7 1.5 27.2 9.6 11.5 5.6 7.4 6.4 5.2 15.6 12.5 10.4 -67.0 24.5 INOTERA 3474 TT 27 5,556 1.3 1.3 1.2 6.0 4.5 6.0 7.3 7.5 7.0 21.7 12.9 20.4 -55.1 68.0 -36.5 TOSHIBA 6502 JP 298 11,931 2.8 2.3 1.9 29.4 18.2 19.3 6.6 5.6 4.9 10.4 12.5 10.3 TTB -16.6 22.0 INTEL INTC US 35 166,214 2.6 2.4 2.3 17.6 18.4 17.6 8.0 7.1 7.2 14.8 13.4 13.2 -1.1 9.9 1.8
Source: Bloomberg for non-rated companies, HSBC estimates for rated companies
5
EQUITIES SEMICONDUCTOR/OLED
15 July 2016
Valuation and risks
Samsung Electronics (005930 KS, KRW1,518,000, Buy, TP KRW1,950,000)
Valuation: Our target price is based on an unchanged target PB multiple of 1.5x, which is the
historical 10-year average multiple, applied to 2016e book value, on improved smartphone
shipment and its positive impact on Samsung’s capital-intensive components, such as memory,
system LSI and OLED display. The TP implies c25% upside; we have a Buy rating on the stock.
Samsung is an HSBC Asia Super Ten and GEMs Super 15 portfolio stock.
Key downside risks include: 1) a fall in demand caused by a global economic slowdown or
appreciation of the KRW, which could lead to weaker earnings, 2) further intensified competition
from emerging mobile companies and potential in NAND, 3) from a technology perspective, any
unexpected difficulty in mass producing foldable smartphones, 4) weaker than expected
smartphone growth, especially in the high-end segment, and 5) weaker traction of foldable
smartphone by end users.
SK Hynix (000660 KS, KRW32,700, Buy, TP KRW41,000)
Valuation: Our TP is based on a target multiple of 1.3x applied to our 2016e BVPS. This target
multiple is at the low end of the ten-year average excluding the years of negative loss. Our TP
implies c25% upside from the current market price; accordingly, we rate the stock Buy.
Key downside risks include greater KRW appreciation and a further slowdown in the global
economy, which may dampen profitability, while weakness in the Japanese yen could weaken
competitiveness. A potential decrease in demand caused by the global economic slowdown is
another risk to the company. Slower-than-expected DRAM price decline will be a key risk to
earnings outlook.
SFA Engineering (056190 KS, KRW57,200, Buy, TP KRW82,000)
To derive our target price, we apply a PE of 12.3x, which is the stock’s one-year forward
multiple, averaged over three years, to our 12-month forward EPS estimate of KRW5,672.11.
This methodology is unchanged. Our TP implies upside of c43% and we have a Buy rating. We
think the company will be a key beneficiary of LCD-to-OLED transition in equipment as an
OLED equipment (PE-CVD, Evaporator, sputter and encapsulation) and logistics equipment
supplier. Downside risks to our view: (1) further delays in the supply of front-end equipment to
Samsung Display’s OLED manufacturing lines and (2) delays in Samsung Display’s capacity
expansion for smartphone (6G) and TV (8G).
Wonik IPS (240810 KS, KRW22,600, Buy, TP KRW25,000)
Our fair value target price is derived by applying a target PE multiple of 17.4x to our 12-month-
forward EPS estimate. Our target multiple is the peer group’s five-year historical average PE, with
that period chosen to correspond to the five-year cycle for the semiconductor market. Our TP implies
c11% upside. We have a Buy rating for Wonik IPS as it should be a key beneficiary of the 3D NAND
transition from 2D and OLED transition from LCD. Key downside risks to our investment case
include 1) slower-than-expected 3D NAND migration at Wonik IPS’ captive customer, Samsung; 2)
any delay in the delivery of orders or the timing of recognising the settlement; 3) weaker-than-
expected investment in semiconductors and display by Wonik IPS’ captive customer due to slower
demand growth; and 4) faster-than-expected extreme ultraviolet (EUV) lithography commercialisation,
which could pose downside risks as EUV could reduce the number of deposition/etching process.
LG Display (034220 KS, KRW28,900, Buy, TP KRW31,400)
We see fair value at 0.8x (unchanged) YE16/17e BVPS of KRW39,308, which gives us a fair value
target price of KRW31,400. Our TP implies c9% upside. We have a Buy rating for LG Display as we
expect it to benefit from the size migration and supply tightness that could emerge in the coming
quarters. The target multiple of 0.8x represents the mid-point of 0.6x to 1.0x PB range within which
the stock traded in 2014, when its ROE was in the mid-to-high single digits , similar to what we
expect the company to generate in 2016e. Key downside risks to our investment case are the (1)
slowdown in size migration, (2) aggressive investment in OLED, which has yet to be commercially
proven for large applications; and (3) high volatility in Apple product cycles.
EQUITIES SEMICONDUCTOR/OLED
15 July 2016
6
Disclosure appendix
Analyst Certification
The following analyst(s), economist(s), and/or strategist(s) who is(are) primarily responsible for this report, certifies(y) that the
opinion(s) on the subject security(ies) or issuer(s) and/or any other views or forecasts expressed herein accurately reflect their
personal view(s) and that no part of their compensation was, is or will be directly or indirectly related to the specific
recommendation(s) or views contained in this research report: Ricky Seo, Jerry Tsai and Kenneth Shim
Important disclosures
Equities: Stock ratings and basis for financial analysis
HSBC believes an investor's decision to buy or sell a stock should depend on individual circumstances such as the investor's
existing holdings, risk tolerance and other considerations and that investors utilise various disciplines and investment horizons
when making investment decisions. Ratings should not be used or relied on in isolation as investment advice. Different
securities firms use a variety of ratings terms as well as different rating systems to describe their recommendations and
therefore investors should carefully read the definitions of the ratings used in each research report. Further, investors should
carefully read the entire research report and not infer its contents from the rating because research reports contain more
complete information concerning the analysts' views and the basis for the rating.
From 23rd March 2015 HSBC has assigned ratings on the following basis:
The target price is based on the analyst’s assessment of the stock’s actual current value, although we expect it to take six to 12
months for the market price to reflect this. When the target price is more than 20% above the current share price, the stock will
be classified as a Buy; when it is between 5% and 20% above the current share price, the stock may be classified as a Buy or a
Hold; when it is between 5% below and 5% above the current share price, the stock will be classified as a Hold; when it is
between 5% and 20% below the current share price, the stock may be classified as a Hold or a Reduce; and when it is more
than 20% below the current share price, the stock will be classified as a Reduce.
Our ratings are re-calibrated against these bands at the time of any 'material change' (initiation or resumption of coverage,
change in target price or estimates).
Upside/Downside is the percentage difference between the target price and the share price.
Prior to this date, HSBC’s rating structure was applied on the following basis:
For each stock we set a required rate of return calculated from the cost of equity for that stock’s domestic or, as appropria te,
regional market established by our strategy team. The target price for a stock represented the value the analyst expected the
stock to reach over our performance horizon. The performance horizon was 12 months. For a stock to be classified as
Overweight, the potential return, which equals the percentage difference between the current share price and the target price,
including the forecast dividend yield when indicated, had to exceed the required return by at least 5 percentage points over the
succeeding 12 months (or 10 percentage points for a stock classified as Volatile*). For a stock to be classified as Underweight,
the stock was expected to underperform its required return by at least 5 percentage points over the succeeding 12 months (or
10 percentage points for a stock classified as Volatile*). Stocks between these bands were classified as Neutral.
*A stock was classified as volatile if its historical volatility had exceeded 40%, if the stock had been listed for less than 12
months (unless it was in an industry or sector where volatility is low) or if the analyst expected significant volatility. However,
stocks which we did not consider volatile may in fact also have behaved in such a way. Historical volatility was defined as the
past month's average of the daily 365-day moving average volatilities. In order to avoid misleadingly frequent changes in rating,
however, volatility had to move 2.5 percentage points past the 40% benchmark in either direction for a stock's status to change.
7
EQUITIES SEMICONDUCTOR/OLED
15 July 2016
Rating distribution for long-term investment opportunities
As of 15 July 2016, the distribution of all independent ratings published by HSBC is as follows:
Buy 44% (24% of these provided with Investment Banking Services)
Hold 41% (25% of these provided with Investment Banking Services)
Sell 15% (20% of these provided with Investment Banking Services)
For the purposes of the distribution above the following mapping structure is used during the transition from the previous to
current rating models: under our previous model, Overweight = Buy, Neutral = Hold and Underweight = Sell; under our current
model Buy = Buy, Hold = Hold and Reduce = Sell. For rating definitions under both models, please see “Stock ratings and basis
for financial analysis” above.
For the distribution of non-independent ratings published by HSBC, please see the disclosure page available at
http://www.hsbcnet.com/gbm/financial-regulation/investment-recommendations-disclosures.
Share price and rating changes for long-term investment opportunities
SK Hynix Inc. (000660.KS) share price performance KRW
Vs HSBC rating history
Rating & target price history
From To Date Analyst
Overweight Neutral 21 Jan 2014 Ricky Seo Neutral Overweight 24 Apr 2014 Ricky Seo Overweight Buy 30 Mar 2015 Ricky Seo
Target price Value Date Analyst
Price 1 40000.00 07 Aug 2013 Ricky Seo Price 2 43000.00 24 Sep 2013 Ricky Seo Price 3 47000.00 23 Oct 2013 Ricky Seo Price 4 39000.00 21 Jan 2014 Ricky Seo Price 5 49000.00 24 Apr 2014 Ricky Seo Price 6 55000.00 09 Jun 2014 Ricky Seo Price 7 60000.00 24 Jul 2014 Ricky Seo Price 8 65000.00 12 Oct 2014 Ricky Seo Price 9 70000.00 08 Dec 2014 Ricky Seo Price 10 67000.00 10 Jun 2015 Ricky Seo Price 11 63000.00 23 Jul 2015 Ricky Seo Price 12 51000.00 02 Sep 2015 Ricky Seo Price 13 49000.00 17 Dec 2015 Ricky Seo Price 14 42000.00 18 Feb 2016 Ricky Seo Price 15 41000.00 26 Apr 2016 Ricky Seo
Source: HSBC
Source: HSBC
Samsung Electronics (005930.KS) share price
performance KRW Vs HSBC rating history
Rating & target price history
From To Date Analyst
Overweight Buy 25 Mar 2015 Ricky Seo
Target price Value Date Analyst
Price 1 1870000.00 28 Jul 2013 Ricky Seo Price 2 2000000.00 23 Oct 2013 Ricky Seo Price 3 1900000.00 08 Jan 2014 Ricky Seo Price 4 1800000.00 23 Jun 2014 Ricky Seo Price 5 1700000.00 08 Jul 2014 Ricky Seo Price 6 1500000.00 02 Sep 2014 Ricky Seo Price 7 1450000.00 24 Sep 2014 Ricky Seo Price 8 1600000.00 08 Jan 2015 Ricky Seo Price 9 1700000.00 26 Jan 2015 Ricky Seo Price 10 1850000.00 16 Mar 2015 Ricky Seo Price 11 1800000.00 07 Jul 2015 Ricky Seo Price 12 1700000.00 30 Jul 2015 Ricky Seo Price 13 2000000.00 04 Jan 2016 Ricky Seo Price 14 1900000.00 15 Mar 2016 Ricky Seo Price 15 1950000.00 10 Jun 2016 Ricky Seo
Source: HSBC
Source: HSBC
15600
25600
35600
45600
55600
65600
Jul-1
1
Jul-1
2
Jul-1
3
Jul-1
4
Jul-1
5
Jul-1
6
670000
870000
1070000
1270000
1470000
1670000
1870000
Jul-1
1
Jul-1
2
Jul-1
3
Jul-1
4
Jul-1
5
Jul-1
6
EQUITIES SEMICONDUCTOR/OLED
15 July 2016
8
SFA Engineering (056190.KQ) share price performance
KRW Vs HSBC rating history
Rating & target price history
From To Date Analyst
Overweight Buy 20 Apr 2015 Ricky Seo
Target price Value Date Analyst
Price 1 68000.00 12 Sep 2013 Ricky Seo Price 2 58000.00 19 Feb 2014 Ricky Seo Price 3 62000.00 12 Feb 2015 Ricky Seo Price 4 58000.00 08 Jun 2015 Ricky Seo Price 5 60000.00 12 Nov 2015 Ricky Seo Price 6 70000.00 04 Jan 2016 Ricky Seo Price 7 80000.00 03 Mar 2016 Ricky Seo Price 8 86000.00 15 Apr 2016 Ricky Seo Price 9 82000.00 17 May 2016 Ricky Seo
Source: HSBC
Source: HSBC
LG Display (034220.KS) share price performance KRW
Vs HSBC rating history
Rating & target price history
From To Date Analyst
Overweight (V) Overweight 17 Oct 2013 Jerry Tsai Overweight Buy 20 Apr 2015 Jerry Tsai
Target price Value Date Analyst
Price 1 45000.00 18 Jul 2013 Jerry Tsai Price 2 33500.00 17 Oct 2013 Jerry Tsai Price 3 33000.00 23 Jan 2014 Jerry Tsai Price 4 33500.00 18 Apr 2014 Jerry Tsai Price 5 37200.00 23 Jul 2014 Jerry Tsai Price 6 48700.00 22 Sep 2014 Jerry Tsai Price 7 51500.00 22 Oct 2014 Jerry Tsai Price 8 50700.00 28 Jan 2015 Jerry Tsai Price 9 50400.00 20 Apr 2015 Jerry Tsai Price 10 50800.00 22 Apr 2015 Jerry Tsai Price 11 36800.00 20 Jul 2015 Jerry Tsai Price 12 32600.00 14 Oct 2015 Jerry Tsai Price 13 31000.00 26 Jan 2016 Jerry Tsai Price 14 30600.00 29 Mar 2016 Jerry Tsai Price 15 31400.00 17 Jun 2016 Jerry Tsai
Source: HSBC
Source: HSBC
Wonik IPS Co Ltd (240810.KQ) share price performance
KRW Vs HSBC rating history
Rating & target price history
From To Date Analyst
N/A Buy 13 May 2016 Ricky Seo
Target price Value Date Analyst
Price 1 25000.00 13 May 2016 Ricky Seo
Source: HSBC
Source: HSBC
To view a list of all the independent fundamental ratings disseminated by HSBC during the preceding 12-month period, please
see the disclosure page available at www.research.hsbc.com/A/Disclosures.
15350
25350
35350
45350
55350
65350
75350
85350
Jul-1
1
Jul-1
2
Jul-1
3
Jul-1
4
Jul-1
5
Jul-1
6
17500
22500
27500
32500
37500
42500
47500
Jul-1
1
Jul-1
2
Jul-1
3
Jul-1
4
Jul-1
5
Jul-1
6
17200
18200
19200
20200
21200
22200
23200
24200
Jul-1
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EQUITIES SEMICONDUCTOR/OLED
15 July 2016
HSBC & Analyst disclosures
Disclosure checklist
Company Ticker Recent price Price date Disclosure
SAMSUNG ELECTRONICS 005930.KS 1500000.00 14-Jul-2016 6 SK HYNIX INC. 000660.KS 33050.00 14-Jul-2016 7
Source: HSBC
1 HSBC has managed or co-managed a public offering of securities for this company within the past 12 months.
2 HSBC expects to receive or intends to seek compensation for investment banking services from this company in the next 3
months.
3 At the time of publication of this report, HSBC Securities (USA) Inc. is a Market Maker in securities issued by this
company.
4 As of 30 June 2016 HSBC beneficially owned 1% or more of a class of common equity securities of this company.
5 As of 31 May 2016, this company was a client of HSBC or had during the preceding 12 month period been a client of
and/or paid compensation to HSBC in respect of investment banking services.
6 As of 31 May 2016, this company was a client of HSBC or had during the preceding 12 month period been a client of
and/or paid compensation to HSBC in respect of non-investment banking securities-related services.
7 As of 31 May 2016, this company was a client of HSBC or had during the preceding 12 month period been a client of
and/or paid compensation to HSBC in respect of non-securities services.
8 A covering analyst/s has received compensation from this company in the past 12 months.
9 A covering analyst/s or a member of his/her household has a financial interest in the securities of this company, as
detailed below.
10 A covering analyst/s or a member of his/her household is an officer, director or supervisory board member of this
company, as detailed below.
11 At the time of publication of this report, HSBC is a non-US Market Maker in securities issued by this company and/or in
securities in respect of this company
12 As of 11 July 2016, HSBC beneficially held a net long position of more than 0.5% of this company’s total issued share
capital, calculated according to the SSR methodology.
13 As of 11 July 2016, HSBC beneficially held a net short position of more than 0.5% of this company’s total issued share
capital, calculated according to the SSR methodology.
HSBC and its affiliates will from time to time sell to and buy from customers the securities/instruments, both equity and debt
(including derivatives) of companies covered in HSBC Research on a principal or agency basis.
Analysts, economists, and strategists are paid in part by reference to the profitability of HSBC which includes investment
banking, sales & trading, and principal trading revenues.
Whether, or in what time frame, an update of this analysis will be published is not determined in advance.
Economic sanctions imposed by the EU and OFAC prohibit transacting or dealing in new debt or equity of Russian SSI entities.
This report does not constitute advice in relation to any securities issued by Russian SSI entities on or after July 16 2014 and as
such, this report should not be construed as an inducement to transact in any sanctioned securities.
For disclosures in respect of any company mentioned in this report, please see the most recently published report on that
company available at www.hsbcnet.com/research. In order to find out more about the proprietary models used to produce this
report, please contact the authoring analyst.
EQUITIES SEMICONDUCTOR/OLED
15 July 2016
10
Additional disclosures
1 This report is dated as at 15 July 2016.
2 All market data included in this report are dated as at close 15 July 2016, unless a different date and/or a specific time of
day is indicated in the report.
3 HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its
Research business. HSBC's analysts and its other staff who are involved in the preparation and dissemination of Research
operate and have a management reporting line independent of HSBC's Investment Banking business. Information Barrier
procedures are in place between the Investment Banking, Principal Trading, and Research businesses to ensure that any
confidential and/or price sensitive information is handled in an appropriate manner.
4 You are not permitted to use, for reference, any data in this document for the purpose of (i) determining the interest
payable, or other sums due, under loan agreements or under other financial contracts or instruments, (ii) determining the
price at which a financial instrument may be bought or sold or traded or redeemed, or the value of a financial instrument,
and/or (iii) measuring the performance of a financial instrument.
Production and distribution disclosures
1 This report was produced and signed off by the author on 15 Jul 2016 10:35 GMT.
2 In order to see when this report was first disseminated please see the disclosure page available at
https://www.research.hsbc.com/R/34/RngCK6D
11
EQUITIES SEMICONDUCTOR/OLED
15 July 2016
Disclaimer
Legal entities as at 1 July 2016
‘UAE’ HSBC Bank Middle East Limited, Dubai; ‘HK’ The Hongkong and Shanghai Banking Corporation Limited, Hong
Kong; ‘TW’ HSBC Securities (Taiwan) Corporation Limited; 'CA' HSBC Bank Canada, Toronto; HSBC Bank, Paris Branch;
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Banking Corporation Limited, Singapore Branch; The Hongkong and Shanghai Banking Corporation Limited, Seoul
Securities Branch; The Hongkong and Shanghai Banking Corporation Limited, Seoul Branch; HSBC Securities (South
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Financiero HSBC; HSBC Bank Australia Limited; HSBC Bank Argentina SA; HSBC Saudi Arabia Limited; The Hongkong
and Shanghai Banking Corporation Limited, New Zealand Branch incorporated in Hong Kong SAR; The Hongkong and
Shanghai Banking Corporation Limited, Bangkok Branch
Issuer of report
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Banking Corporation Limited, Seoul Securities Branch. MCI (P) 094/06/2016, MCI (P) 085/06/2016 and MICA (P) 021/01/2016
[518811]
Global
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Global Telecoms, Media & Technology Research Team
