October 29th, an economic article that shows money, the money game begins.
Just take a look at the title of today’s money game!
1. “Electric car crisis? “We are going!
” LG Ensol’s bold survival strategy revealed2. “Stock prices plummeted from the first day” Will the IPO market bubble burst, but the price of overheated public offering prices 3. TSMC stock price plunged 4.3% due to Trump’s threat of tariffs on Taiwan with “semiconductor war explosive remarks”4. “When Hyundai Motor Company’s performance is slowing,” Kia and Hyundai Mobis rise, dividend feast imminent5. “500 people made reservations a day” Secret 6 of Ashley’s 400 billion won sales hit. “U-turn in 34 days” Is it time for foreigners to buy Samsung Electronics? 7. “China’s wallet is closed.” Fearful negative performance in the global luxury goods industry8. “iPhone also participates in the AI war” Apple launches new AI ‘Apple Intelligence’9. “Electric vehicles are holding us back” Ford’s stock price plunged 4% due to lowered earnings forecast for this year10. “Infinite money bug from social media” JP Morgan begins war of complaints against customers who hacked ATMs
“Cross the Chasm”… LG Ensol with a sure-win strategy – Maeil Business Newspaper LG Ensol·Chemical 3rd quarter performance Ensol recorded operating profit of KRW 448.3 billion, down 39% from last year, but taking advantage of environmental regulations in the EU as an opportunity to contract chemical contracts with global companies, operating profit down 42% from the previous year. Facility investment: KRW 4 trillion → KRW 2 trillion” www.mk.co.kr
“Electric car crisis? “We are going!
” LG Ensol’s bold survival strategy revealed1. Signal of a performance rebound: operating profit of KRW 448.3 billion, a 129.5% increase compared to the previous quarter2. Seizing opportunities in Europe: Targeting the 25,000 Euro entry-level electric vehicle market3. Hedging strategy with ESS: “Batteries are not just for cars” LG Energy Solution, accelerating business diversification, has come up with a really great strategy!
Even though the electric vehicle market was slowing down, performance in the third quarter improved significantly. If you look at the numbers first, it’s really surprising!
Sales recorded 6.8778 trillion won and operating profit 448.3 billion won, which is an increase of 11.6% and 129.5%, respectively, compared to the second quarter. Of course, the IRA tax credit of 466 billion won was included. What is especially noteworthy is LG Ensol’s European strategy!
Aiming at the fact that the EU will further strengthen carbon dioxide regulations starting next year, we have set our sights on the market for low-end electric vehicles priced under 25,000 euros. In fact, we signed a contract with Renault to supply 39GWh of LFP batteries!
The contract performance is really impressive!
We consecutively won large contracts worth 50.5GWh with Mercedes-Benz and 109GWh with Ford. Full-scale supply will begin in 2027, which is a strong guarantee of future profits. What’s smarter is the ‘ESS card’!
We are strengthening our energy storage business in preparation for a slowdown in the electric vehicle market. They say they are starting to produce and sell LFP-based ESS in the United States, so this is a really clever hedging strategy!
One interesting thing!
The parent company, LG Chem, is adopting a rather conservative strategy. It is said that facility investment has been reduced from 4 trillion won to 2 trillion won. Can this combination of a cautious parent company and an aggressive subsidiary create synergy? Now, LG Energy Solution’s counterattack has begun. Can we overcome the temporary downturn (chasm) in the electric vehicle market? There is a new weapon called ESS and a new market called Europe. Aren’t you really looking forward to it?
The IPO rush is overheating… ‘First day minus’ continues as IPO rush overheats… ‘First day minus’ continues, 22% drop compared to Clobot’s public offering price 7 out of 9 listed companies drop this month K Bank suddenly withdraws public offering process www.hankyung.com
“Stock prices plummeted from the first day” Will the IPO market bubble burst, but the cost of the overheated public offering price 1. The cold reality of October: 7 out of 9 companies fell below their public offering prices, with an average return of -12%2. The cost of the ‘bullshit public offering price’: SGI Seoul Guarantee “PBR 1x or less” in response to K-Bank IPO withdrawal 3. IPO where money is scattered: 16 companies simultaneously subscribe, investment funds are distributed, report card shows ‘red light’ Something truly shocking is happening in the IPO market!
The return on the first day of listing, which soared to 32.85% in August and 55.71% in September, plummeted to -12% this month. This is my first loss from investing in public offering stocks this year. This damn Clawbot ㅠㅠThe most recent example is really shocking!
There is a company called Clobot. The institutional competition rate was 933 to 1 and the general subscription rate was 1,037 to 1, but it plummeted 22.54% from the first day of listing. Wavis and HNS Hitech also recorded declines of around 20%, and Wavis’ stock price continued to fall even though it was given a 90% repurchase right!
What is especially noteworthy is the withdrawal of K Bank’s IPO!
It set a PBR of 2.56 times, which is higher than that of Kakao Bank, an existing listed internet bank, but gave up listing after failing miserably in institutional demand forecasting. After seeing this, SGI Seoul Guarantee quickly decided to lower the PBR to below 1x, which means that the market atmosphere has completely changed!
It’s even more interesting to look at the cause!
It is said that 16 companies received applications at the same time this month alone. The investment money is spread out too much. Moreover, the market has begun to turn its back on the ‘blurry public offering prices’ of companies with no growth potential. The future is more important!
Large IPOs such as LG CNS, DN Solutions, K Bank, SGI Seoul Guarantee, and Lotte Global Logistics are lined up, but the IB industry is warning that “companies without growth potential can only survive if they drastically lower their public offering price.” Now, IPO. The market has reached a truly important inflection point!
It is said that ‘picking the rocks’ has begun, but which companies will be able to survive?
Trump accuses Taiwan of stealing U.S. chip business. Here’s what the election could bringTrump said tariffs should be put on Taiwan’s chips during an appearance on the Joe Rogan Experience podcast.www.cnbc.com
TSMC stock price plunged 4.3% due to Trump’s threat of tariffs on Taiwan with “semiconductor war explosive remarks”1. Trump’s bombshell: “Taiwan stole our semiconductor industry” CHIPS Act criticism 2. Impact that cannot be ignored: Threat of tariffs on TSMC, which monopolizes 90% of the world’s advanced chips 3. The U.S. presidential election’s ambush: Trump bombs with tariffs, Harris strengthens export controls Why are there so many comments criticizing the semiconductor market? Trump said on the Joe Rogan Podcast, “Taiwan stole America’s semiconductor industry.” TSMC’s stock price plummeted 4.3% with those words!
Why is this statement so shocking? TSMC accounts for 90% of the world’s cutting-edge semiconductors. It is an absolute powerhouse that produces %!
All big tech companies, including Apple and Nvidia, as well as Amazon, Google, and Microsoft, rely on TSMC. Trump also strongly criticized the CHIPS Act. He said, “This is a bad deal that allows rich companies to build factories with our money,” and said that if elected, he would impose tariffs on Taiwanese semiconductors. Semiconductor ETFs have already evaporated as much as $675 billion due to similar remarks, so the market is reacting really sensitively!
Mizoho Securities analyzed that “Trump’s election is bad news for TSMC,” and Citi said, “Thousands of components are being inspected one by one.” “It won’t be easy to impose tariffs because it has to be inspected.” In particular, analyst Patrick Moorhead warned, “China could retaliate like Micron did.” But the interesting thing is that even if Harris wins, that doesn’t mean the semiconductor industry is safe!
Just as Nvidia’s Chinese sales decreased from 25% to less than 10% due to the Biden administration’s export controls to China, there are predictions that Harris will continue his hard-line policy. On the other hand, American companies such as Intel, Global Foundry, and Texas Instruments have seen their stock prices rise. Okay. This is because there is an expectation that if Trump is elected, he will further support domestic companies!
Now, this is a really important inflection point!
The global semiconductor landscape may change depending on the results of the presidential election. What changes will come? How will TSMC overcome this crisis? What about our Samsung Electronics?
“Now it’s our turn” Kia and Hyundai Mobis are running – Maeil Business Newspaper Stock price rises 5% after announcement of Kia’s performance with improved profitability in the 3rd quarter Hyundai Mobis announces performance that exceeds expectations Hyundai Mobis also continues its upward trend Ahead of the announcement of a value increase for both companies in November, expectations for the expansion of share purchases are also growing www.mk.co.kr
“When Hyundai Motor Company’s performance is slowing,” Kia and Hyundai Mobis rise, dividend feast imminent1. Performance reversal: When Hyundai Motors fell 6%, Kia rose 5% and Mobis soared 14.2%2. The truth about hidden performance: Kia, earnings surprise 3 excluding one-time costs of KRW 600 billion. Money feast foreshadowed: Kia dividend yield 7%, Mobis expected to purchase KRW 150 billion of treasury stock Really interesting changes are taking place at Hyundai Motor Group!
In the meantime, ‘big brother’ Hyundai Motors led the stock price rise, but now ‘younger brothers’ Kia and Hyundai Mobis have emerged as the mainstream!
It’s even more surprising when you look at the numbers!
After the third quarter earnings announcement, Hyundai Motors fell 6%, Kia rose 5%, and Hyundai Mobis soared 14.2%. What on earth happened? In particular, Kia’s performance is really interesting!
On the surface, it appears to be 231 billion won short of the consensus, but in reality, there was a one-time cost of 600 billion won (lambda engine quality assurance). If you exclude this, it was actually an earnings surprise!
Moreover, Kia was able to defend its performance well even though sales volume decreased as the proportion of luxury car sales increased. Hyundai Mobis also recorded record-high sales of 3.1 trillion won in the after-sales service division alone, with its modules and core parts finally turning a profit!
On the other hand, Hyundai Motors seems to be having a bit of a difficult time. Yong-kwon Moon, a researcher at Shinyoung Securities, pointed out, “Out of the product mix, exchange rate, and sales volume that have been important for the past three years, only the exchange rate effect remains.” I’m looking forward to more in the future!
Kia will announce a plan to increase corporate value next month, and its dividend yield is currently 7%, which is higher than Hyundai Motor Company’s (5%). There are predictions that Hyundai Mobis will announce a share buyback worth 150 billion won at Investor Day on November 19th!
Will the ‘younger brothers’ be able to surpass the ‘older brothers’? How rich will the dividend feast be?
400 billion won in annual sales from buffet… Ashley’s heyday – Maeil Business Newspaper weekday lunch price 19,900 won Popularity due to super cost-effectiveness “Expanded number of stores to 150” ‘Salad bar’ VIPS also successfully revived 35% average annual growth over 3 years www.mk.co.kr
“500 reservations per day” Secret of Ashley’s 400 billion won sales hit 1. The myth of cost-effectiveness: 100 menu items for 19,900 won, sales soaring by 69%2. Large-scale expansion strategy: 120 → 150 stores, Jamsil branch exceeds KRW 10 billion in annual sales3. The heyday of buffets: VIPS also grows by 35%, and competition intensifies with even Shilla joining in. ‘Ashley’, the legend of family restaurants, is writing a really great twisted drama!
Sales this year are expected to reach a whopping 400 billion won. These things happen because I don’t go. The secret is ‘cost-effectiveness’!
The price of eating out has risen like crazy, and a plate of pork belly costs over 20,000 won, but Ashley’s weekday lunch costs 19,900 won. Plus, you can enjoy over 100 menu items unlimitedly!
I’m especially amazed at the success of the Jamsil Lotte Castle branch. Monthly sales exceeded 1 billion won, and annual sales are expected to exceed 10 billion won this year. We’ve made it possible to accommodate more than 500 people a day, with a flexible seating capacity of 200 to 400!
We’re also really aggressive in expanding our business!
We plan to increase the current number of stores from 120 to 150 next year. Shinsegae Department Store Gimhae Branch and Hyundai Department Store Sinchon Branch are also opening in November, and the fact that such aggressive expansion is possible is proof that demand is explosive!
Competitors’ movements are also unusual. VIPS’ sales per store increased by an average of 35% per year from 2020 to 2023, and the Mokdong 41 Tower branch is said to be fully booked for weekends a month in advance. Shilla Stay’s ‘Cafe’ has also entered the cost-effective buffet market. What is especially interesting is the differentiation strategy of each company!
The VIPS Eunpyeong Lotte branch created a kids’ room with a ‘carnival’ concept and has already attracted 90,000 visitors, and the Mokdong branch is decorated with a sky lounge and offers a panoramic view. Now, it seems like the golden age of buffets has really arrived!
Aren’t you looking forward to the future as the cost-effectiveness has become even more outstanding due to the rise in dining prices and a premium experience has been added? Will the glory of the family restaurants of the 1990s return? Should I go to Ashley after a long time?
I sold it for over a month… Foreigners who bought Samsung Electronics again – expected rebound ahead of Maeil Economic Performance announcement Net purchase of KRW 9.2 billion in 34 trading days www.mk.co.kr
“U-turn in 34 days” Is it time for foreigners to buy Samsung Electronics? 1. Surprising return of foreigners: 13 trillion won worth of sales and first net purchase conversion2. “Good news for NVIDIA”: Stock price rebounds 4% on news of HBM partner approval3. Expectations for recovery of 60,000 electronics: Rebound after hitting 52-week low, attention to earnings announcement Foreigners who sold a whopping 13 trillion won worth of Samsung Electronics stocks over 34 trading days have finally turned into net buyers!
Looking at the numbers, it’s really surprising!
Foreigners made a net purchase of 9.1 billion won, which is the first time since September 2nd. Considering that we sold 12.9394 trillion won worth of products in 33 consecutive trading days, this is a really big change!
There are two factors at the core of the change. First, the stock price has fallen too much. On this day, it fell to 55,700 won, a new 52-week low. Experts judged that “the decline was excessive.” What is more important is the good news from Taiwan!
Local media reported that “NVIDIA has conditionally approved Samsung Electronics as an HBM (high bandwidth memory) partner.” The main reason for foreign selling was the lack of competitiveness of HBM compared to TSMC or SK Hynix, but now that concern can be resolved!
Institutional investors also contributed by net buying 153.9 billion won. Individuals sold 166.5 billion won, but the stock price eventually rose 3.94% and closed at 58,100 won. Now attention is focused on next week’s earnings announcement. In the third quarter, we recorded the highest ever sales of KRW 79 trillion, but operating profit was KRW 9.1 trillion, which was below market expectations. Now, it’s a really important moment!
Is it possible to recover to ‘60,000 electrons’ as foreigners continue to return? I’m really looking forward to next week’s earnings release.
As China closed its wallet, Louis Vuitton bowed its head. As China closed its wallet, Louis Vuitton bowed its head. Global luxury goods industry’s third quarter negative streak www.chosun.com
“China’s wallet is closed” Fearful negative performance in the global luxury goods industry 1. Tilted luxury goods empire: LVMH -3%, Kering -16%, Ferragamo -7.2% Shocking performance 2. To or from China: Change in the ideals of Chinese consumers, who accounted for 30% of sales3. Youth rebellion: Consumers in their 20s and 30s who are “considering cost-effectiveness” are moving to the second-hand market A truly tremendous change is taking place in the luxury goods industry!
It is said that LVMH Chairman Arnault, once the world’s richest man, fell to 5th place. What on earth happened? If you look at the numbers, it is truly shocking!
LVMH recorded a performance of -3%, Kering recorded a whopping -16%, and Ferragamo recorded a performance of -7.2%. In particular, in the Asian market, LVMH’s sales decreased by 16%, and Zegna’s sales plummeted by 22.8% in China alone!
How big of a change is this? China only accounted for 1% of the global luxury goods market in 2000, but in 2018, it accounted for a whopping 3%. I took 1/2 of it!
Even during the Corona period, the market grew by 48% in 2020 and 36% in 2021. But more interesting changes are happening!
China’s 2030 generations have changed. People who account for 60% of luxury goods consumption in China are now starting to consider cost-effectiveness. So, isn’t it really surprising that the used luxury goods market is growing by more than 30% per year? In addition, Xi Jinping’s ‘shared wealth’ policy has begun to crack down on luxury trends. Accounts boasting about wealth are being shut down on social media, meaning that flaunting luxury items has become a thing of the past. Experts’ predictions are also dire. The EIU predicted, “Even if the global retail market booms next year, China will only grow by 4%,” and Wall Street analysts said, “It will be difficult to reverse the crisis in the luxury goods industry even with China’s economic stimulus package.” Now, now. This is a really important crossroads!
China accounts for 30% of the market, but there is no country to replace it, and the tastes of Chinese consumers are changing… How will the luxury goods industry overcome this crisis?
Apple releases Apple Intelligence. Here’s how to get it on your iPhoneThe release is a critical milestone for Apple, which is relying on the feature launch to power its marketing campaign for the iPhone 16.www.cnbc.com
“iPhone also participates in the AI war” Apple launches new AI ‘Apple Intelligence’1. Differentiated strategy: “My own AI” Choose device-embedded AI rather than the cloud2. First, stick to the basics: Sentence trimming, photo editing, and notification summary functions installed3. More powerful update preview: Chat GPT linkage and image creation at the end of the year Apple has finally entered the AI war!
‘Apple Intelligence’ was released through the iOS 18.1 update. Let’s take a look at how special this is? First of all, Apple’s strategy is really interesting!
Unlike other companies pouring billions of dollars into Nvidia chips, Apple chose to use the iPhone’s own chips. So it can only be used on the iPhone 15 Pro or 16 series!
Looking at the first released features, they are really practical!
There are functions that allow you to refine your sentences, delete desired objects from photos, and summarize numerous notifications into one. Siri has also been upgraded, with a new design with shiny screen edges and a more natural voice!
What I’m more excited about are the features to come!
Chat GPT integration and image creation functions will be added at the end of the year, and Siri will be able to work directly within the app next year. Bank of America analyst Wash Mohan predicted, “Thanks to this phased release strategy, demand for the iPhone will continue to grow.” It’s easy to use!
If you request permission to access Apple Intelligence in the Settings app, you will be put on a waiting list, and during beta testing, approval was usually granted within a day. Once approved, you must download the AI model file. What is especially noticeable is the change in Siri!
Now you can have a text conversation by swiping up from the bottom of the screen without speaking. The photo app has also become smarter, allowing searches using natural language and automatically creating short videos using photos!
Now, Apple has entered the AI war in earnest!
Will Apple’s unique strategy of in-device AI succeed? I’m looking forward to seeing what new features will come out at the end of the year.
Ford guides to low end of 2024 earnings forecast as it slightly tops Wall Street’s third-quarter expectationsFord guides to low end of 2024 earnings forecast as it slightly tops Wall Street’s Q3 expectationswww.cnbc.com
“Electric vehicles are the problem” Ford’s stock price plunged 4% due to lowered earnings forecast for this year1. Outlook worse than expected: This year’s operating profit lowered to $10 billion, stock price down 4% after hours2. Electric vehicle counterattack: Model e division loses $1.2 billion, commercial vehicles and traditional businesses support 3. Quality is still a problem: $2 billion in cost savings due to rapid increase in warranty repair costs ‘Chanson’ Ford announced really important results!
Even though third-quarter earnings slightly exceeded expectations, the stock price fell 4% in after-hours trading. Let’s start with the numbers. Automobile sales were $43.07 billion, exceeding expectations of $41.88 billion, and earnings per share were 49 cents, exceeding expectations of 47 cents. But why did the stock price fall? The problem is the future outlook!
Ford lowered its adjusted operating profit (EBIT) forecast for this year from $10 billion to $12 billion to ‘about $10 billion.’ Wall Street was concerned about increased vehicle inventory, sluggish demand, and the possibility of achieving cost reduction goals, and these concerns eventually became reality!
It’s even more interesting when you look at it by sector!
The traditional ‘Ford Blue’ division recorded a surplus of $1.63 billion, the commercial vehicle division ‘Pro’ recorded a surplus of $1.81 billion, while the electric vehicle division ‘Model e’ recorded a loss of a whopping $1.22 billion. The deficit has decreased compared to last year, but this is because production has been reduced!
CFO John Roller’s explanation is also interesting!
“We achieved cost savings of $2 billion, but inflation and warranty repair costs ate up all of this effect.” Warranty repair costs increased by $800 million in the second quarter, but this time they decreased slightly compared to last year. Overall, net profit was $896 million (22 cents per share), and adjusted operating profit was 16% higher than last year. It hit $2.55 billion. Total sales increased 5% to $46.2 billion. Now, this is a really important moment!
When will the deficit in the electric vehicle sector be resolved? How can quality issues be improved? Let’s watch the future unfold together!
JPMorgan begins suing customers who allegedly stole thousands of dollars in ‘infinite money glitch’JPMorgan is investigating thousands of cases related to the glitch, which highlights the risk that social media can amplify vulnerabilities found at a bank.www.cnbc.com
“Infinite money bug on social media” JP Morgan begins war of accusations by customers who hacked ATMs 1. $290,000 trick: Legal battle with customers who stole money with fake checks 2. The chaos created by TikTok: How to hack the ‘ATM bug’ that spread on social media 3. “Now it’s all about tracking”: Priority filing of major case, criminal charges also being prepared Something truly unbelievable happened at JP Morgan!
It is said that many people succeeded in stealing money due to the ‘ATM infinite money bug’ that spread on social media. What on earth happened? The incident started at the end of August!
A man put a fake $335,000 check into an ATM, then withdrew $290,000 before the money was returned. Normally, you can only withdraw a portion of the check until it clears, but they took advantage of this ‘bug’!
What’s even more shocking is that this went viral on social media!
As this method spread on TikTok, thousands of incidents occurred. Last year alone, check fraud caused a loss of $26.6 billion worldwide, and this time, the damage was even greater with the addition of social media. JP Morgan’s response is also interesting!
First, lawsuits were started in Texas, Miami, and California, and most cases were worth between $80,000 and $140,000. They say they are handling large cases related to criminal organizations first. This is what the bank says. “Fraud affects everyone and erodes trust in the banking system.” Now, in addition to civil lawsuits, the case is being handed over to law enforcement agencies across the country to pursue criminal punishment!
What’s especially interesting is the compensation requested by JP Morgan!
They say they will charge interest and overdraft fees on the stolen money, as well as attorney fees. They even ask for punitive damages in some cases, so it looks like they’re really trying to make a point!
An exciting courtroom drama is about to begin. How much money can JP Morgan recover?
Have a great day today!