Hot Issue Hot Issue. Realized KRW 580.4 billion in sales and KRW 123.9 billion in operation income...
Transcript of Hot Issue Hot Issue. Realized KRW 580.4 billion in sales and KRW 123.9 billion in operation income...
Hot Issue
Realized KRW 580.4 billion in sales and KRW 123.9 billion in operation income for 3Q
- Record-high quarterly sales, operating income, and net income
- Up 30.1% and 44.5% year-on-year in operating income and net income, respectively
Launched a self-sterilizing bidet "Secret Care"
- Separating spray nozzle for female to the side of seat to
ensure high hygiene
- Using electrolyzed safe water for cleaning
- Adopting 2-step self-sterilizing system
IR WEBZINE2015. November
Market ReviewStock Market
The KOSPI closed at 1,991.77 points at the end of November, 1.85% lower from the previous month, putting a brake on rebound since the end of October. It seemed to hold a place on 2,000 points by surpassing 120-day moving average line. However, uncertainties at home and abroad brought about the expansion of volatility and shrinkage of investment sentiment. In the aspect of technical analysis, the KOSPI and short, mid, and long-term moving average lines are converging.
The possibility of US interest rate increase in the near future unleashed the strength of market interest rate and US dollar, which made a negative effect on global stock markets. The domestic stock market could also hardly be free from this environment even though major companies realized favorable operating results for the third quarter.. During the period, pharmaceuticals, machinery, and chemical sectors were bullish, while paper & wood, steel & metal, vehicles & components sectors were relatively bearish.
In December, there's a chance that the domestic stock market will experience an impact if the FOMC carry out the increase of interest rate. However, many investors expect it will be limited and the solution of uncertainties will make a positive effect on the stock market. In addition, the government policy to expand dividend payout ratio is likely to encourage investments in valuable stocks.
IR WEBZINE2015. November
Market ReviewStock Price
The stock price of Coway declined by 0.82% month-to-month to KRW 84,500 at the end of November. It seems to accumulate energy for the next step by fluctuating between KRW 85,000 and KRW 95,000 in the aspect of technical analysis. As concerns about selling Coway shares by the largest shareholder has diluted and positive prospects of our businesses for the coming years has been magnified, the stock price is expected to reflect the right value in the near future.
Coway achieved double digit growth in both sales and operating income on the consolidated base for the third quarter, showing an earnings surprise that outperform consumer goods players. These remarkable results were mainly attributable to our exclusive new product lineups demonstrating high functionality and innovation based on IoT technology. These products have led striking sales growth and high customer trust. Overseas business and cosmetics business have also been vitalizing. We expect our continuously growing operating results will grab attention of many investors.
During November, the number of shares held by foreigners increased 133,957 shares, or 0.3%, compared with the prior month. As of the end of November, they maintained 52.28% ownership. Domestic institutional investors marked net selling of 140,320 shares during the same period.
Classification% change of COWAY %change of
KOSPI%change of
KOSPI200Stock Price vs. KOSPI vs. KOSPI200
5 Days -0.82 -0.24 -0.14 -0.59 -0.68
20 Days -8.05 -5.93 -5.51 -2.13 -2.54
60 Days 4.45 0.44 -1.78 4.01 6.23
IR WEBZINE2015. November
133,957shares(0.3%)
-140,320shares-0.82%
40,319,219 shares
(as of November. 30, 2015)
Changes in Stock Price in November
Changes in Shares Held by Foreigners in November
Net Changes in Shares Held by Institutional Investors in November
Market ReviewStock Price
• Strong Buy
• Buy
• Hold
• Underperform
• Sell
0
4
0
0
0
Average Ratings Average Target Price = \120,250
Sell StrongBuy Low :\100,000
High :\130,000
2015-11-04 | KDB Daewoo Securities | Target Price : 130,000 | BUY
A pleasant surprise in an otherwise ...For 3Q, Coway announced preliminary consolidated revenue of W580.4bn (+10.4% YoY) and operating profit of W123.9bn (+30.1% YoY; OP margin of 21.3%), topping consensus estimates by 4% and 14%, respectively. …
FULL REPORT VIEW
2015-11-04 | Shinhan Investment Corp | Target Price : 130,000 | BUY
Dividend yield of 3% China momentum expected ...Coway reported K-IFRS standalone sales of W545.7bn (+10.0% YoY) and operating profit of W125.6bn (+29.5% YoY) in 3Q15. The number of rental accounts went up 5.3% YoY to 4.78mn and rental sales …
FULL REPORT VIEW
2015-11-04 | Mirae Asset Securities | Target Price : 121,000 | BUY
3Q15 results reviewCoway reported healthy 3Q15 earnings results. We maintain our BUY rating for Coway, considering its: 1) solid 4Q15 earnings outlook; 2) 2.9% dividend yield for 2015; and 3) easing concerns …
FULL REPORT VIEW
2015-11-04 | Samsung Securities | Target Price : 100,000 | BUY
Core business keeps growingCoway yesterday reported that in 3Q its sales rose 10% y-y to KRW580.4b and operating profit jumped 30% y-y toKRW123.9b (with margin improving 1.5%pts y-y to 21.4%), both …
FULL REPORT VIEW
IR WEBZINE2015. November
Coway News
Won the Innovation Grand Prize at the "Web Award Korea"
Coway won the grand prize in the design innovation category at the "12th Web
Award Korea.“
The award is held by KIPFA (Korea Internet Professionals Association) and
sponsored by the MSIP (Ministry of Science, ICT and Future Planning) and KISA
(Korea Internet & Security Agency) and recognized as one of website evaluation
events of authority. A panel of website evaluation experts take part in selecting
the most innovative and excellent websites in the aspects of visual design, UI
design, technology, contents, marketing, and service.
Coway's design website introduces its product design philosophy "Design the
Basic" on the basis of storytelling and visuals. This website gained high
recognition in the way that it helps users understand product design concepts
easily and contributes to raising confidence on and awareness of brands.
Another excellence was to give new experience value to users by offering
illustration-based simulation how Coway's products are harmonized with interior
space.
Yeom, Il-soo, head of Design Research Center, said, "Our website provides users
with new brand experience and plays a role as efficient online communication
channel beyond just a function of information delivery, which receives very
positive responses from users. We will continue to develop contents that benefit
users and customers."
IR WEBZINE2015. November
Coway News
Launched an upgraded version of "Re:NK Homme Line"
IR WEBZINE2015. November
Coway's anti-aging cosmetics brand Re:NK launched an upgraded version of
"Re:NK Homme Line" to fundamentally care men's skin and provide skin care
solutions.
Core ingredient "enercell 2.0 men's" containing plant components helps users
enhance skin elasticity. In addition, this product boasts Re:NK Homme's unique
perfume that represents dynamic and energetic sense.
Re:NK Homme Line is composed of 3-step skin care solutions by total clear
cleansing foam, essence skin, and rebalancing moisturizer.
Total clear cleansing foam keeps the skin clean by deeply cleansing waste on the
skin and pore of the skin. Essence skin offers moisture element to dry skin by
washing and shaving. Rebalancing moisturizer plays a role for balancing skin oil
and moisture.
Cha, Yu-jeong, a Re:NK brand staff member, said, "In line with increasing men's
interest in skin care, professional and functional homme products are catching
popularity today. We also expect Re:NK Homme Line to much appeal to male
consumers."
Coway News
Coway's Environmental Technology Research Institute obtained the "CVC for authorized testing lab."
IR WEBZINE2015. November
Coway obtained the "CVC (China Vkan Certification) for authorized testing lab"
for the first time in environmental home appliances industry.
The obtainment makes it possible for Coway to authorize the CCC (China
Compulsory Certification) and CQC (China Quality Certification) for the safety of
water purifier, air purifier, bidet, and juicer with the results conducted by self-
testing at its International Certification Center of Environmental Technology
Institute. The CCC is mandatory for Korean companies to export their electric and
electronic appliances to China.
The obtainment allows Coway to shorten the period for certification
authorization by approximately four weeks. It also raises the company's global
presence in product safety and competitiveness.
The authorization process of CCC and CQC has required much time and costs
because products were transported to authorized testing labs in China before the
obtainment. To reduce time and costs in line with authorization, Coway has built
testing facilities in its International Certification Center of Environmental
Technology Institute and strived for securing testing ability.
Lee, Seon-yong, head of Environmental Technology Institute, said, "The
obtainment enables us to supply safe products more rapidly. We will make a
concerted effort to develop safer products.“
Coway established the International Certification Center with internationally
agreed-upon testing equipment in Yugu Factory in 2012 for the first time in the
domestic environmental home appliances industry. Since then, the company has
been conducting testing and certification management works on product safety
by capitalizing on cutting-edge equipment and technologies. Today, the center
has 14 qualifications for authorized testing lab.
Coway News
Launched the Velvet CC Cushion Holiday Limited Edition
IR WEBZINE2015. November
Coway's anti-aging cosmetics brand Re:NK launched the " Velvet CC Cushion
Holiday Limited Edition" for the winter season.
This product has the concept of "Royal Winter" and package design embodies
cell pattern into crystal snow to enhance artistic value.
Re:NK's best selling product Velvet CC Cushion enables 3-step skin texture
control - care, correction, and maintenance. Liquid base foundation pack ensures
user convenience. This product also boasts high hygiene by adding silver thread
to velvet with 99.9% anti-virus function.
Coway News
Selected as a company with excellent quality competitiveness for five consecutive years
- Practicing quality management from product development to sales and disposal- Quality enhancement systems such as "Daily Quality Mesh" and "QS7" - Encouraging suppliers to ensure quality through "Quality Innovation Project
IR WEBZINE2015. November
Coway was selected as a company with excellent quality competitiveness for five
consecutive years at the “2015 National Quality Management Competition” held
by Korean Agency for Technology and Standards and hosted by Korea Standard
Association.
The competition aims to select companies with comprehensive competitiveness
in the fields of products, services, customer satisfaction, and operating
performance.
Coway was highly recognized in the way that it has secured quality
competitiveness in all processes from product development to sales and disposal,
and has continuously focused on quality management.
The company operates “Daily Quality Mesh” analysis center engaging in real-time
monitoring of product quality in order to rapidly and correctly ameliorate product
quality. “QS7 (Quality Solution 7 Days)” system aims to improve all quality-related
issues within 7 days, which has dramatically contributed to the enhancement of
customer satisfaction. In addition, Coway’s innovative production technologies
ensure industry-leading manufacturing quality competitiveness.
Furthermore, Coway is proactive in supporting its suppliers to secure quality
competitiveness through the “Quality Innovation Project” aimed at stabilizing
suppliers’ product and process quality.
Coway News
Won the “CES 2016 Innovation Award” in eight categories
- Our six products won the “CES Innovation Award” in eight categories- High recognition on our unique and innovative customer care services
IR WEBZINE2015. November
Coway's innovative technology and design obtained universal recognition by
winning the "CES Innovation Award" in eight categories before the world's
largest electronics show "CES (Consumer Electronics Show)" to be held in Las
Vegas from January 6 to 9, 2016.
The CES Innovation Award is given to excellent entries among those submitted to
the CES after the evaluation of technology, design, and innovation by CEA
(Consumer Electronics Association) and IDSA (International Design Excellence
Awards).
CES announced on November 10 that Coway's six products - dual care air purifier IoCare (AP-1515D), self-sterilizing water
purifier IoCare (CHP-470L), barista ice water purifier (CHPCI-430N), clinic bidet (BASH21-A), air purifier for vehicle, and
portable air purifier - won the award in eight categories. In spite of the first participation in the CES, Coway achieved
meaningful performances.
The above prize-winning products demonstrate excellence in innovation, technology, and design. Dual care air purifier
adopted IoT technology to show air condition in real time and provide tailored air control solutions, offering new air care
experience to consumers. Self-sterilizing water purifier IoCare automatically sterilize and manage all water paths and also
provides differentiated care services through smart phone application. Barista ice water purifier is a hybrid product to offer
clean, cool, and hot water, ice, and coffee. Coway's clinic bidet was created through joint research with proctological
surgery of Seoul National University Hospital, offering new values of cleaning, hygiene, and health. Air purifier for vehicle
ensures systematic air care in vehicle through IoT-based air quality monitoring system. Coway's portable air purifier
ensures tailored air care and targets single-person households.
Kim, Dong-hyun, the CEO, said, "We are proud of winning the award in that our efforts to deliver customers innovative
and distinctive life care value were recognized in the world. We plan to present our new vision and innovative customer
experience based on IoT technologies at the CES 2016."
Coway News
Launched a self-sterilizing bidet "Secret Care"
- Separating spray nozzle for female to the side of seat to ensure high hygiene- Using electrolyzed safe water for cleaning - Adopting 2-step self-sterilizing system
IR WEBZINE2015. November
Coway launched a self-sterilizing bidet "Secret Care" on November 10.
■ Secret spray nozzle for female users
This product gives consideration to female users who are sensitive to hygiene.
Cleaning nozzle is located on the side of seat and finely soft water spray reduces
skin stimulation, which ensures both high hygiene and cleaning power. In case of
most competitors' bidets, stimulation is strong and cleaning scope is narrow
because they jet bold water spray.
■ Using electrolyzed safe water for cleaning
Electrolyzed safe water ensures high hygiene. In case of washing anal,
electrolyzed safe water first cleans anus and then general water is jetted for
another cleaning. In consideration of the difference of human body, 3-step water
jet system is adopted.
■ Adopting 2-step self-sterilizing system
The first step is to automatically sterilize nozzle after users leave the seat. The second step is to clean all water paths once
a day without any control of users automatically. This system uses electrolyzed safe water which is harmless to human and
eliminates over 99.9% of bacteria such as colon bacillus and staphylococcus aureus.
■ Waterproof rating of IPX5
This product obtained the waterproof ration of IPX5 from Korea Testing Laboratory, ensuring safe use at a humid
environment such as toilet. In addition, self-developed smart energy-saving technology "Green Plug" reduces electricity
cost.
Park, Yong-joo, head of Marketing HQ, said, "This new bidet has diverse functions for safe use in addition to special
functions for female users. We will continue to lead the bidet market by capitalizing on our unique product concept and
technologies."
Coway News
Selected as the best company at the "2015 CDP Water Korea"
- Recognized for excellence in water management activities- Ranked the winner in the carbon management sector for seven consecutive years
IR WEBZINE2015. November
Coway was selected as the best company at the "2015 CDP Water Korea" and
the winner in the carbon management sector for seven consecutive years at the
"2015 CDP Korea" in recognition of its excellence in response to climate change.
▣ Became Korea's first company to be selected as the best player
The CDP Water Korea was first introduced this year and 45 domestic listed and
unlisted companies were invited to the evaluation. Among Korean companies,
Coway became the only company to be selected as the best player. Evaluation
categories included the levels of disclosure, awareness, management, and
leadership.
Coway has been leading the water issues under the corporate philosophy of "Offering healthy life through clean water."
Coway manages all water data which are directly and indirectly used in all processes of production, usage, and disposal in
order to lead water saving. The company also conducts the "Water Comma" campaign aimed at forming healthy water-
drinking habits and enlightening the importance of water.
▣ Ranked the winner in the carbon management sector for seven consecutive years at the "2015 CDP Korea"
In recognition of outstanding performances in the carbon management, Coway ranked the winner in the selected
consumer goods category for seven consecutive years.
At the event, Coway entered the "A list," the highest level, thanks to high recognition for the fidelity to carbon
information disclosure. More than 5,500 companies in the world and 250 domestic companies in terms of market
capitalization were evaluated this year, of which only 189 global companies and 11 domestic companies entered the "A
list." In particular, Coway entered the highest group among companies which were not included in GHG and energy
target management system and emissions trading scheme.
Coway established solar power generation system in all worksites to reduce energy use and strives to enhance energy
efficiency through developing environmental technologies.
Shin, Kwang-sik, head of Environmental Quality Research Center, said, "Our company gained recognition in the world for
both carbon management and water management this year. We will fulfill our role and responsibility as Korea's leading
company in environmental management."
Coway News
Realized KRW 580.4 billion in sales and KRW 123.9 billion in operation income for 3Q
IR WEBZINE2015. November
Coway achieved remarkable operating performances in 3Q. Sales grew 10.4% year-on-year to KRW 580.4 billion.
Operating income and net income also soared 30.1% and 44.5% to KRW 123.9 billion and KRW 92.4 billion on a K-IFRS
consolidated base, respectively. These results came mainly from continuous growth of environmental home appliances
business, progress of overseas subsidiaries, and increases of sales and accounts from home care business.
▲ Continuous growth of environmental home appliances business
Sales from environmental home appliances business recorded KRW 486.5 billion, up 11.1% year-on-year or 5.0%
quarter-to-quarter. In particular, lump-sum and other sales from electric range, massage chair, and water softener soared
32.1% to KRW 50.8 billion.
Rental sales increased 6.7% year-on-year to KRW 376.4 billion, thanks to enhancing sales power as well as launching new
products such as IoT-based premium water purifiers and air purifiers. Net increase of cumulative rental accounts for 3Q
recorded 179 thousand, an increase of 76 thousand from the previous year. As a result, the number of total accounts
surpassed 5.72 million, a record high.
▲ Progress of overseas subsidiaries
The US subsidiary saw an increase of 35% in sales by achieving KRW 14.2 billion. The number of accounts reached 92
thousand. Sales of Malaysia subsidiary also realized KRW 24.7 billion, up 13.7% year-on-year, in sales. The number of
cumulative accounts also rose by 35.1% to 264 thousand at the end of 3Q.
▲ Increases of sales and accounts from home care business
Sales from home care business skyrocketed 109.3% from the previous year thanks to continuous increase of mattress care
rental accounts. The number of rental accounts in home care business increased 28.1% year-on-year to 254 thousand at
the end of 3Q. This business is evolving into a new growth engine for Coway.
Lee, Jae-ho, CFO of Coway, said, "In the third quarter, we achieved stable growth of environmental home appliances
business and improvement in lump-sum sales. We will continue this growth trend by launching innovative products such
as dual power air purifier IoCare and sleep-supporting air purifier and strengthening sales power in the next quarter as
well."
- Record-high quarterly sales, operating income, and net income - Up 30.1% and 44.5% year-on-year in operating income and net income, respectively
IR Activities
EVENT
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IR Conference_Earning Release for 3Q 2015
2015 – 11 - 03
KDB Daewoo Securities
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IR WEBZINE2015. November
EVENT
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Overseas NDR
2015 – 11 - 04 ~ 11 - 06
USA
Morgan Stanley
EVENT
DATE
LOCATION
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Overseas NDR
2015 – 11 - 11 ~ 11 - 13
Singgapore
Korea Investment & Securities Co., Ltd.
EVENT
DATE
LOCATION
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Domestic NDR
2015 – 11 – 16 ~ 11 - 17
Domestic institutional investors
Hana Securities
EVENT
DATE
LOCATION
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Overseas NDR
2015 – 11 - 18 ~ 11 - 20
HongKong
Korea Investment & Securities Co., Ltd.