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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
Faster OLED adoption at China smartphone makers; OLED
supply chain likely a near-term beneficiary
OLED price parity over LCD should be a major stimulus for
OLED transition, but visibility on OLED TV is slightly lowered
We reiterate our positive view on the OLED supply chain; our
TPs and ratings remain unchanged
Faster OLED adoption at China smartphone: OLED adoption at China smartphone
makers looks to be faster than we previously expected, and we now assume OLED
adoption at China smartphone to reach 38% of total by 2018e (30% previously) from 9%
in 2015e. We attribute this to two factors: 1) pursuit of product and design differentiation
by Chinese smartphone makers amid intensifying competition and 2) OLED price parity
over LCD. Especially, flexible OLED adoption is faster at China smartphone due to the
need for design differentiation. Moreover, Samsung’s success in Edge at Galaxy S7 and
Apple’s potential flexible adoption is driving Chinese makers to hasten OLED adoption.
Oppo, Vivo, Huawei and Xiaomi look to have plans to launch smartphones with a curved
display in 2016e, according to local news (Financial News, 2 May 2016).
Price parity to stimulate the adoption further. Manufacturing costs of OLED became
lower than that of LCD in 1Q16; thus we assume OLED module price parity over LCD will
occur in 2Q16e. This price parity should be a major factor for stimulating OLED adoption
at Chinese smartphone since higher cost and panel price sensitivity at Chinese
smartphone makers were major hurdles for such a transition, even with better
technological competitiveness. According to IHS, manufacturing cost of 5” OLED panels
became slightly lower than that of same-sized LCD at USD14.3 in 1Q16 due to: 1) higher
utilisation at Samsung Display and 2) lower depreciation cost. We think the cost decline
will accelerate as more depreciation costs expire further.
Lowered visibility on OLED TV, but only slight delay. The Street seems to be
concerned that Samsung may not adopt OLED technology at TV since the management
of its TV division expressed that quantum dot technology is a more attractive solution than
OLED, and this would imply that there is no major technology change until 2017e.
However, we still think white OLED TV will become main stream in the premium segment
given its superior quality and flexibility in design. We think market share gain of OLED TV
and sharp panel price decline at Chinese TV maker will lead to Samsung starting WOLED
TV production, although we push out our forecast of the ramp-up schedule by six months
to 2H17e. OLED-based quantum dot TV can be a potential viable solution, in our view.
We reiterate our positive view on the OLED supply chain. We believe that the OLED
supply chain will be a near-term beneficiary and like the following Buy-rated stocks: SFA,
Wonik IPS, and Duksan Neolux. Also, we think Samsung (constituent of both HSBC
GEMs Super 15 and Asia Super Ten) and LG Display will benefit from the faster OLED
transition in China smartphone. We reaffirm our high conviction on our assumption of net
flexible OLED capacity increase of 108k panel per month in 2017e.
18 May 2016
Ricky Seo*
Semiconductor Analyst The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch [email protected]
+822 37068777
Will Cho* Technology Analyst
The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch
+822 3706 8765
Jerry Tsai*
Analyst
HSBC Securities (Taiwan) Corporation Limited
+8862 6631 2863
Kenneth Shim*
Research Associate, Tech The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch
[email protected] +822 3706 8779
* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations
OLED EQUITIES OLED
Korea
Faster OLED adoption at China smartphone makers; price parity to stimulate the adoption further
EQUITIES OLED
18 May 2016
2
Faster-than-expected OLED adoption at China smartphone
We see that OLED adoption at China smartphone makers is faster than our previous
expectation, and now assume OLED adoption at China smartphone to reach 38% of total by
2018e (vs previous estimate of 30%) from 9% in 2015e. We attribute this to two factors:
1) pursuit of differentiation by Chinese smartphone makers amid intensifying competition and
2) price parity of OLED over LCD. Especially, flexible OLED adoption is faster at China
smartphone due to need for design differentiation. Moreover, Samsung’s success in Galaxy S7
Edge and Apple’s potential flexible OLED adoption are driving Chinese makers to hasten OLED
adoption. Oppo/Vivo/Huawei/Xiaomi look to have plans to launch smartphone with curved
display in 2016e, according to local news (Financial News, 2 May 2016).
Faster OLED transition in
smartphone but slower in TV
Faster flexible OLED adoption at China smartphone for product and
design differentiation than we previously expected
Price parity to be another catalyst likely to accelerate OLED transition
However, visibility on OLED TV at Samsung is declining, pushing out
momentum to 2017e instead of 2H16e based on our estimates
In this document HSBC may comment on the potential economic impact dependent on the outcome of the UK Referendum.
HSBC is not taking a political position and this document and the information contained herein are not intended to promote or
procure, or otherwise be in connection with promoting or procuring, a particular outcome in relation to the question asked in
the UK Referendum.
OLED adoption at China smartphone to reach 38% by 2018e from 30% previously
Global OLED adoption, including Apple, to come in ahead of our expectation
Source: HSBC estimates Source: HSBC estimates
1%
9%
18%
32%
38%
15%
25%30%
0%
20%
40%
60%
2014 2015 2016e 2017e 2018e
New China OLED smartphone adoption portion
Previous China OLED smartphone adoption portion
10%14%
21%
34%
43%
20%
32%
41%
0%
20%
40%
60%
2014 2015 2016e 2017e 2018e
New global OLED smartphone adoption portion
Previous global OLED smartphone adoption portion
3
EQUITIES OLED
18 May 2016
OLED provides product differentiation in saturated smartphone market
We think Chinese smartphones players will play an important role in driving acceleration of
global OLED penetration in smartphone since: 1) market leaders Samsung and Apple are
looking to aggressively adopt OLED displays for key differentiating feature and 2) OLED
appears to now be a more feasible display solution compared to LCD in terms of both
cost/return profile and technological competitiveness. Chinese players are following suit in order
to not lag the competition. As such, we expect faster OLED penetration in Chinese smartphone
to 18%/32%/38% of total in 16e/17e/18e from 15%/25%/30% in our previous forecasts. We
estimate Chinese OLED smartphone shipments to grow 78% annually during 2015-18e.
Factoring this, we also raise OLED adoption at global smartphone to 21%/34%/43% in
2016/17/18e from 20%/32%/41%, respectively. We look for Global OLED smartphone
shipments to grow 58% annually during 2015-18e.
Chinese makers likely to aggressively adopt OLED in order to not lag Samsung and
Apple in competition
With market leaders Samsung and Apple looking to aggressively adopt OLED displays for key
differentiating features we believe Chinese brands will be keen not to lag in the competition and
follow suit. As noted in our recent report (see OLED: Improved visibility on upside catalysts,
16 April 2016), the likeihood for Apple’s (AAPL.OQ, USD93.88, not covered) OLED adoption
appears to be increasing from the new phone in 2H17. We assume 100m units of OLED-based
iPhones in 2H17e. Moreover, Samsung Electronics seems to be aggressively expanding
adoption of OLED display at its growing mid-low line-ups, and we assume 85% of OLED
adoption at Samsung by 2018e from 40% in 2015.
Upcoming OLED smartphones at Chinese and North American smartphone makers
Smartphone maker Model OLED display Expected release date
China players Gionee S8 5.5" FHD AMOLED display May 2016e M5 plus 6" FHD AMOLED display Released Dec 2015 HiSense A1 5.5" FHD Super AMOLED display Displayed in MWC 2016 Konka L850 5.2" FHD AMOLED display Displayed in MWC 2016 Lenovo Zuk Z2 Pro 5.2" FHD Super AMOLED display 2016e in China Huawei Mate Edge Flexible AMOLED display 2016e P9 plus 5.5" FHD AMOLED display Released April 2016 Meizu Meizu Pro 6 5.2" FHD Super AMOLED display Launch in China 2Q16e Oppo Find 9 4K flexible AMOLED display June 2016e F1 Plus 5.5" FHD AMOLED display Launched in Mar 2016 Vivo Xplay 5 5.4" QHD flexible AMOLED display 2016e in China Vivo 5 5.5" 720p Super AMOLED displays Released February 2016 Vivo XL 5.5" 720p Super AMOLED displays Released February 2016 Xiaomi Mi Edge Flexible AMOLED display 2016e ZTE Axon Nubia My Prague 5.2" FHD Super AMOLED display Displayed in MWC 2016 Axon Max 6" FHD Super AMOLED display Released February 2016
North American players Blackberry Rome Flexible AMOLED display 2016e Vienna 5.4" QHD AMOLED display 2016e HP Elite X3 5.96" OLED display June 2016e Microsoft Lumia 650 5" AMOLED display Released February 2016
Source: Company data, HSBC
Summary of ratings and target prices
Company Ticker Rating CMP (17 May) TP (KRW) Upside/Downside
SFA 056190 KS Buy 58,000 82,000 41.4% Wonik IPS 240810 KS Buy 19,850 25,000 25.9% Duksan Neolux 213420 KS Buy 28,300 45,000 59.0% Samsung Electronics 005930 KS Buy 1,264,000 1,900,000 50.3% LG Display 034220 KS Buy 24,400 30,600 25.4%
Source: HSBC estimates
EQUITIES OLED
18 May 2016
4
Chinese OLED smartphone to grow 78% annually, during 2015-18e
OLED smartphone to grow 58% annually, during 2015-18e, accounting for 43% total
Source: HSBC estimates Source: HSBC estimates
OLED adoption at major Chinese players: Oppo/Vivo/Huawei
Based on our observations, Chinese smartphone players (eg, Oppo, Vivo and Huawei), have
recently achieved significant shipment growth by successfully differentiating their smartphones
from competitors by adopting OLED displays. We note that Oppo increased its global market
share by 3ppt to 5.5% in 1Q16, ranking 4th
(from 11th
in 1Q15) according to IDC, and it is also
gaining traction in emerging markets (eg, India and Malaysia). Also, Vivo saw its market share
rise by 2ppt to 4.3% in 1Q16 ranking 5th
in global market (from 12th
in 1Q15). Huawei ranks 3rd
and the top five global smartphone leaders are Chinese players.
According to IHS, OLED penetration at Chinese smartphone players will be accelerated this
year. OLED adoption at OPPO should reach 39%, a 2ppt increase from last year, and Vivo and
Huawei should also increase to 30% and 8%, respectively. Other Chinese players, such as
Meizu and Lenovo, indicated plans to gradually increase adoption of OLED displays at their
smartphone product line-up, according to IHS.
Global market share rising for major Chinese smartphone players
…on the back of increasing adoption of OLED displays for product differentiation
Source: IDC, HSBC Source: IHS, HSBC estimates
OLED price parity over LCD to be a major stimulus for OLED transition
Manufacturing costs for OLED became lower than LCD in 1Q16 and thus we assume price
parity will occur in 2Q16e. This price parity will likely be a major factor, stimulating OLED
adoption at Chinese smartphones since higher cost and panel price sensitivity at Chinese
smartphone makers were major hurdles for such a transition, even with better technological
competitiveness. But with manufacturing costs of OLED cheaper than that of LCD, OLED
appears to now be a more feasible display solution compared to LCD in terms of both
4 40
91
179
229
76
140181
0
100
200
300
400
500
2014 2015 2016e 2017e 2018e
New China OLED smartphone shipment
Previous China OLED smartphone shipment(mn units)
151 224
374
646
878
345
606
834
0
300
600
900
1,200
1,500
2014 2015 2016e 2017e 2018e
New global OLED smartphone shipment
Previous global OLED smartphone shipment(mn units)
0%
2%
4%
6%
8%
10%
1Q15 2Q15 3Q15 4Q15 1Q16
Huawei Oppo Vivo
37%39%
25%
30%
2%
8%
0%
10%
20%
30%
40%
50%
2015 2016e
Oppo Vivo Huawei
5
EQUITIES OLED
18 May 2016
cost/return profile and technology, and thus we believe OLED transition will be given a strong lift.
Market research firm IHS reported that the manufacturing cost for 5” OLED panels became
slightly lower than that of the same-sized LCD at USD14.3 in 1Q16 due to: 1) higher utilisation
at Samsung Display amid customer expansion, especially with Chinese smartphone makers,
and 2) lower depreciation cost. In terms of cost, OLED panel has a 2% premium over LCD as
costs for OLED fell by 16% q-o-q to USD14.3 while LCD panel costs fell 7% to USD14.6. We
expect the decline in OLED display costs to accelerate driven by a fall in per-unit manufacturing
costs as utilization rises from increasing adoption of OLED displays globally.
Manufacturing cost of OLED panel became lower than that of LCD
…and so we assume price parity will occur in 2Q16e
Source: IHS, HSBC Source: IHS, HSBC estimates
Full benefit to OLED equipment and material suppliers
We believe price parity and faster decline in OLED display costs from increasing adoption of
OLED displays will be key drivers for acceleration of OLED adoption and thus we reaffirm our
high conviction of net flexible OLED capacity increase of 108k panel per month capacity in
2017e. We expect this to lead to stronger order flows to equipment makers during 2H16-1H17.
As such, we reiterate our Buys on both OLED equipment and material suppliers as near-term
beneficiaries. In addition, we also like Samsung (a constituent of both HSBC GEMs Super 15 and
Asia Super Ten) and LGD as leading OLED smartphone panel makers.
Flexible OLED panel capacity for smartphone (5.2’ equivalent)
Flexible OLED capacity to reach 196k panel per month by 2018e from 32k in 2015
Source: IHS, HSBC estimates Source: IHS, HSBC estimates
17.1
14.3
15.7 14.6
12
14
16
18
4Q15 1Q16
5" FHD OLED 5" FHD LTPS LCD(USD)
0
20
40
60
80
1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16e 3Q16e
FHD OLED on-cell LTPS FHD LCD in-cell LTPS(USD)
7 3248
117
196
9 54
99
251
420
0
100
200
300
400
500
0
50
100
150
200
250
300
350
2014 2015e 2016e 2017e 2018e
Flexible panel capacity (6G equiv.); LHS
Flexible smartphone production capacity (5.2" equiv.); RHS
(k sheets/month)(mn units)
4 26 42
102
159
3 6 7
15
37
5%
21%
29%
50%
63%
0%
20%
40%
60%
80%
0
50
100
150
200
250
300
350
2014 2015e 2016e 2017e 2018e
LGD flexible panel capacitySDC flexible panel capacityPortion of total small panel capacity
(k sheets/ month; 6G equiv.)
196
117
4832
EQUITIES OLED
18 May 2016
6
Lower visibility on OLED TV, but likely only slight delay It seems that visibility on Samsung OLED investment has been declining, and Samsung is likely
to focus on LCD based quantum dot TV technology in the near term. CEO of Samsung Visual
Display division, Hyunsuk Kim (on 4 May), expressed recently that he thinks quantum dot
technology is a more attractive solution than OLED and highlighted that OLED will need further
technology development in terms of materials and evaporators in order to improve product
quality and increase its life time. This implies there is no major technology change until 2017e,
in our view.
Although delayed, we still see OLED as a mainstream ultra-premium TV
However, we still think white OLED TV will become widely adopted in the premium TV space by
2018e, due to a number of advantages, including: 1) vivid colours expression and superior
contrast ratio; 2) thinner and flexibility in design and 3) lower manufacturing costs at the end,
which make the products very marketable. LGD’s aggressive expansion and market share gain
in the ultra-premium segment (USD3,000 or higher) could turn lead to Samsung to move into
OLED TV market from 2018e.
Sharp LCD panel cost decline likely ahead at China could pose a threat to Korean TV
makers
As such, although we push out our capacity ramp-up schedule forecast by 6 months, we
assume Samsung WOLED ramp-up will start from 2H17e for the 2018 line up. We think OLED-
based quantum dot TV could be another potential viable choice for Samsung if it likes to
maintain the quantum dot slogan in its TV marketing. As China panel makers will likely be able
to offer more comprehensive product line-ups in terms of sizes (especially for the 60" and plus
segment) after 10.5G fab ramp-up in 2018e, competition in the LCD TV market may become
tougher without product differentiation. We think WOLED could be viable selection for Korea TV
makers in the end.
Costs comparison between OLED and LCD at large panel
OLED TV capacity assumption change, reflecting ramp-up push-out by 2 quarters
Source: HSBC estimates Source: HSBC estimates and IHS
.
2010 2013 2015 2017~
WOLED LCD
1.5x
3x: Premium market
Mainstream market< 1.0x
> 10x
3041
55
147
67
159
20
40
60
80
100
120
140
160
180
2015e 2016e 2017e 2018e
New large panel capacity (8G equiv.)
Previous large panel capacity (8G equiv.)
7
EQUITIES OLED
18 May 2016
SFA Engineering (056190 KS, KRW58,000, Buy, TP KRW82,000, 41% implied upside)
Valuation: Our unchanged target price is derived by applying an unchanged 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. We have chosen that period as it corresponds to the five-year cycle of
the semiconductor market. Key downside risks: 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 smartphones (6G) and TVs (8G).
Wonik IPS (240810 KS, KRW19,850, Buy, TP KRW25,000, 26% implied upside)
Valuation: We derive our unchanged target price by applying a target PE multiple of 17.4x
(peer group’s five-year historical average PE, which takes in the five-year cycle of the
semiconductor market) to our 2H16e-1H17e EPS as we believe strong order momentum for
both 3D NAND and OLED will begin from 2H16e. Key downside risks: 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.
Duksan Neolux (213420 KS, CMP: KRW28,300, Buy, TP KRW45,000, 59% implied upside)
Valuation: Our unchanged target price is based on a PB multiple of 4.1x unchanged, an
upcycle average during 2010-2012 when ROE expanded to above 20% from 9% driven by
OLED material sales expansion, applied to an average of our 2016e/17e BVPS estimates.
Key downside risks: 1) further delay in launch of high-margin new product to affect our margin
assumption; 2) concentration risk due to a high dependence on a single product (OLED), and a
single customer (SDC); 3) concerns over a delay in earnings improvement due to key
customers delaying OLED investment; and 4) intensifying pressure on OLED material prices.
Samsung Electronics (005930 KS, KRW1,264,000, Buy, TP KRW1,900,000, 50% implied
upside)
Valuation: Our unchanged 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. Key downside risks: 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. Samsung Electronics is an Asia
Super Ten and GEMs Super 15 stock.
LG Display (034220 KS, CMP: KRW24,400, Buy, TP KRW30,600, 25% implied upside)
Valuation: We see fair value at 0.8x (unchanged) FY16e BVPS, which gives us a target price of
KRW30,600 (unchanged). The target multiple of 0.8x represents the mid-point of 0.6-1.0x PB
traded in 2014, when ROE was in the high single digits. Key downside risks include the
slowdown in size migration. Company-specific risks include: 1) aggressive investment in OLED,
which has yet to be commercially proven for large-sized applications and 2) high volatility in the
Apple product cycles.
EQUITIES OLED
18 May 2016
8
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, Will Cho, 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 appropriate,
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.
Rating distribution for long-term investment opportunities
As of 17 May 2016, the distribution of all ratings published is as follows:
Buy 45% (26% of these provided with Investment Banking Services)
Hold 40% (25% of these provided with Investment Banking Services)
Sell 15% (19% of these provided with Investment Banking Services)
9
EQUITIES OLED
18 May 2016
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.
Share price and rating changes for long-term investment opportunities
Duksan Neolux (213420.KQ) share price performance
KRW Vs HSBC rating history
Rating & target price history
From To Date
N/A Hold 08 June 2015 Hold Buy 26 August 2015
Target price Value Date
Price 1 21000.00 08 June 2015 Price 2 22000.00 26 August 2015 Price 3 42000.00 20 November 2015 Price 4 45000.00 15 April 2016 Source: HSBC
Source: HSBC
SFA Engineering (056190.KQ) share price performance
KRW Vs HSBC rating history
Rating & target price history
From To Date
Overweight Buy 20 April 2015
Target price Value Date
Price 1 68000.00 12 September 2013 Price 2 58000.00 19 February 2014 Price 3 62000.00 12 February 2015 Price 4 58000.00 08 June 2015 Price 5 60000.00 12 November 2015 Price 6 70000.00 04 January 2016 Price 7 80000.00 03 March 2016 Price 8 86000.00 15 April 2016 Price 9 82000.00 17 May 2016 Source: HSBC
Source: HSBC
14000
19000
24000
29000
34000
39000
44000
May
-11
May
-12
May
-13
May
-14
May
-15
May
-16
15350
25350
35350
45350
55350
65350
75350
85350
May
-11
May
-12
May
-13
May
-14
May
-15
May
-16
EQUITIES OLED
18 May 2016
10
LG Display (034220.KS) share price performance KRW
Vs HSBC rating history
Rating & target price history
From To Date
Overweight (V) Overweight 17 October 2013 Overweight Buy 20 April 2015
Target price Value Date
Price 1 46000.00 04 July 2013 Price 2 45000.00 18 July 2013 Price 3 33500.00 17 October 2013 Price 4 33000.00 23 January 2014 Price 5 33500.00 18 April 2014 Price 6 37200.00 23 July 2014 Price 7 48700.00 22 September 2014 Price 8 51500.00 22 October 2014 Price 9 50700.00 28 January 2015 Price 10 50400.00 20 April 2015 Price 11 50800.00 22 April 2015 Price 12 36800.00 20 July 2015 Price 13 32600.00 14 October 2015 Price 14 31000.00 26 January 2016 Price 15 30600.00 29 March 2016 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
N/A Buy 13 May 2016
Target price Value Date
Price 1 25000.00 13 May 2016 Source: HSBC
Source: HSBC
17500
22500
27500
32500
37500
42500
47500
May
-11
May
-12
May
-13
May
-14
May
-15
May
-16
17200
18200
19200
20200
21200
22200
23200
24200
May
-11
May
-12
May
-13
May
-14
May
-15
May
-16
11
EQUITIES OLED
18 May 2016
Samsung Electronics (005930.KS) share price
performance KRW Vs HSBC rating history
Rating & target price history
From To Date
Overweight Buy 25 March 2015
Target price Value Date
Price 1 1950000.00 25 June 2013 Price 2 1870000.00 28 July 2013 Price 3 2000000.00 23 October 2013 Price 4 1900000.00 08 January 2014 Price 5 1800000.00 23 June 2014 Price 6 1700000.00 08 July 2014 Price 7 1500000.00 02 September 2014 Price 8 1450000.00 24 September 2014 Price 9 1600000.00 08 January 2015 Price 10 1700000.00 26 January 2015 Price 11 1850000.00 16 March 2015 Price 12 1800000.00 07 July 2015 Price 13 1700000.00 30 July 2015 Price 14 2000000.00 04 January 2016 Price 15 1900000.00 15 March 2016 Source: HSBC
Source: HSBC
HSBC & Analyst disclosures
Disclosure checklist
Company Ticker Recent price Price date Disclosure
SAMSUNG ELECTRONICS 005930.KS 1264000.00 17-May-2016 6
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 April 2016 HSBC beneficially owned 1% or more of a class of common equity securities of this company.
5 As of 31 March 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 March 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 March 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
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.
535000
735000
935000
1135000
1335000
1535000
1735000
1935000
May
-11
May
-12
May
-13
May
-14
May
-15
May
-16
EQUITIES OLED
18 May 2016
12
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.
Additional disclosures
1 This report is dated as at 18 May 2016.
2 All market data included in this report are dated as at close 17 May 2016, unless otherwise 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.
13
EQUITIES OLED
18 May 2016
Disclaimer
Legal entities as at 30 May 2014
‘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;
HSBC France; ‘DE’ HSBC Trinkaus & Burkhardt AG, Düsseldorf; 000 HSBC Bank (RR), Moscow; ‘IN’ HSBC Securities and
Capital Markets (India) Private Limited, Mumbai; ‘JP’ HSBC Securities (Japan) Limited, Tokyo; ‘EG’ HSBC Securities Egypt
SAE, Cairo; ‘CN’ HSBC Investment Bank Asia Limited, Beijing Representative Office; The Hongkong and Shanghai
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
Africa) (Pty) Ltd, Johannesburg; HSBC Bank plc, London, Madrid, Milan, Stockholm, Tel Aviv; ‘US’ HSBC Securities (USA)
Inc, New York; HSBC Yatirim Menkul Degerler AS, Istanbul; HSBC México, SA, Institución de Banca Múltiple, Grupo
Financiero HSBC; HSBC Bank Brasil SA – Banco Múltiplo; 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
The Hongkong and Shanghai Banking Corporation
Limited, Seoul Securities Branch
7th Floor, HSBC Building
25, 1-ka, Bongrae-dong
Chung-ku, Seoul 100-161, Korea
Telephone: +822 3706 8700/3
Fax: +822 3706 8797
Website: www.research.hsbc.com
This document has been issued by The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch ("HSBC") for the information of its institutional and professional
customers; it is not intended for and should not be distributed to retail customers. If it is received by a customer of an affiliate of HSBC, its provision to the recipient is subject to the terms of
business in place between the recipient and such affiliate. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any
investment. HSBC has based this document on information obtained from sources it believes to be reliable but which it has not independently verified; HSBC makes no guarantee,
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change without notice. HSBC and its affiliates and/or their officers, directors and employees may have positions in any securities mentioned in this document (or in any related investment) and
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HSBC Securities (USA) Inc. accepts responsibility for the content of this research report prepared by its non-US foreign affiliate. All U.S. persons receiving and/or accessing this report and
wishing to effect transactions in any security discussed herein should do so with HSBC Securities (USA) Inc. in the United States and not with its non-US foreign affiliate, the issuer of this report.
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retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of The Hongkong and Shanghai
Banking Corporation Limited, Seoul Securities Branch. MICA (P) 073/06/2015 and MICA (P) 021/01/2016
[512069]
Global
Analyst, Global Sector Head Stephen Howard +44 20 7991 6820 [email protected]
Europe
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Americas
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Global Telecoms, Media & Technology Research Team
