Koh Young Technology

Koh Young Technology
(098460 KQ)
3D AOI to become a game changer
2Q preview: OP margin likely improved to 20%
Technology
We forecast Koh Young Technology to post 2Q revenue of W34bn (+12% YoY, +7%
QoQ) and operating profit of W6.8bn (+15% YoY, +22% QoQ), above our previous
expectations. We estimate OP margin rose to 20% thanks to a more favorable product
mix as well as company efforts to raise cost efficiency. That said, F/X-translation losses
due to won appreciation likely dragged down net profit QoQ to W4.4bn.
Earnings Preview
August 7, 2014
Not Rated
(-)
0
Target Price (12M, W)
27,350
Share Price (08/06/14, W)
-
Expected Return
OP (14F, Wbn)
27
Consensus OP (14F, Wbn)
28
EPS Growth (14F, %)
49.2
Market EPS Growth (14F, %)
P/E (14F, x)
14.5
16.6
Market P/E (14F, x)
KOSDAQ
12.4
548.43
Market Cap (Wbn)
Shares Outstanding (mn)
367
13
Free Float (%)
Foreign Ownership (%)
78.6
30.6
Beta (12M)
0.81
52-Week Low
52-Week High
17,614
27,350
(%)
Absolute
1M
11.9
6M
44.1
12M
22.2
Relative
12.8
34.0
24.2
150
Koh Young
KOSDAQ
By product, we believe sales of 3D solder paste inspection (SPI) equipment surged QoQ
to W23.4bn in 2Q, recovering from the weakness of the previous quarter. Despite
increasing market saturation, we believe 3D SPI sales were boosted by favorable
seasonality, as well as more customers buying the equipment in packages with
automated optical inspection (AOI) equipment.
In 1Q, 3D AOI equipment sales more than doubled QoQ, buoyed by a large order placed
by a major global smartphone maker for its new overseas plant. In 2Q, we estimate sales
remained healthy at around W10bn, in spite of the absence of any sizeable order from a
single client. We also believe high-end equipment sales grew on the back of an increased
share of automotive electronic components customers, likely providing a huge lift to
margins. Because vehicle safety is directly tied to human lives, we believe quality and
credibility are given higher importance than price when it comes to inspection
equipment.
Catalysts: 3D AOI to become a game changer
Koh Young Technology’s growth was almost entirely driven by 3D SPI equipment until
just a couple of years ago. After developing 3D inspection equipment using its own
vision technology, the company managed to take over the existing 2D market. The
company now controls half of the global SPI market, meaning one out of every two
manufacturers employing printed circuit boards (PCB) use Koh Young’s 3D SPI
equipment.
Similarly, Koh Young’s 3D AOI equipment is expected to usher in another period of high
growth, serving as a game changer for the existing 2D market. The company sufficiently
raised its production yield last year, and the 3D AOI market is now beginning to take off.
Market competitors have acknowledged the need for 3D AOI equipment, but do not yet
have the capability for mass production. Furthermore, we estimate the market size to
be more than twice as large as that of the SPI market. We believe Koh Young is wellpositioned to take leadership in the 3D AOI market and maintain stable growth, given
the overlapping customer base of the two segments and the company’s solid
reputation.
130
Valuation: Record-breaking rally is justifiable
110
Currently, the stock is trading at a 12-month forward P/E of 13.3x, lower than the
average of global semiconductor back-end process producers (2014F P/E of 16.6x) and
the stock’s two-year average (16.7x). The stock has been on a record-breaking streak
recently, with strong inflows from foreign long-only funds. We believe the stock’s rally is
well-justified.
90
70
7.13
11.13
3.14
7.14
Daewoo Securities Co.,
Co., Ltd.
FY (Dec.)
Revenue (Wbn)
[Small Cap]
OP (Wbn)
OP margin (%)
Will Lee
+822-768-4168
[email protected]
12/10
71
12/11
80
12/12
101
12/13
104
12/14F
135
12/15F
164
19
26.8
19
23.8
20
19.8
18
17.3
27
20.0
35
21.3
15
1,191
17
1,281
15
1,105
15
1,103
22
1,646
30
2,248
ROE (%)
33.3
26.4
19.2
16.1
20.2
22.9
P/E (x)
P/B (x)
10.1
2.8
16.1
3.8
17.0
2.9
16.9
2.5
16.6
3.1
12.2
2.5
NP (Wbn)
EPS (W)
Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests
Source: Company data, KDB Daewoo Securities Research estimates
Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the
the U.S.
PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.
August 7, 2014
Koh Young Technology
Table 1. Quarterly and annual earnings
(Wbn, %)
2012
2013
2014
2012
2013
2014F
35.0
100.8
103.9
134.8
21.3
84.7
77.5
82.3
11.7
12.5
11.4
22.5
49.4
-
0.2
0.3
2.6
1.4
0.5
0.5
0.7
0.7
2.1
2.5
2.5
6.8
7.0
7.5
20.4
17.8
26.8
17.5
20.0
20.4
21.4
20.2
17.1
19.9
4.9
4.4
5.7
7.1
14.8
14.8
22.1
13.5
15.4
13.0
16.5
20.3
14.7
14.2
16.4
14.1
-6.4
293.3
-10.1
-11.5
7.2
51.9
7.0
213.2
11.6
-2.0
91.2
25.7
7.4
87.0
37.6
14.7
105.4
25.7
15.3
247.4
3.1
-8.4
96.9
29.7
6.2
120.2
-25.5
-
-
-
26.6
-
33.7
-45.6
-61.6
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2QF
3QF
4QF
Revenue
19.1
29.6
23.9
28.3
20.8
30.4
27.3
25.4
31.6
34.0
34.3
3D SPI
16.0
26.1
21.5
21.0
14.9
23.9
20.2
18.6
16.0
23.4
21.7
1.8
2.4
1.6
5.7
4.8
5.3
6.3
6.1
15.2
10.0
1.0
0.5
0.2
0.8
0.4
0.9
0.2
-
-
0.3
0.6
0.6
0.7
0.7
0.4
0.7
0.7
0.5
Operating profit
4.0
7.4
3.4
5.5
2.5
5.9
4.6
4.8
5.5
OP margin
21.1
25.1
14.2
19.6
11.8
19.4
17.0
18.9
3.4
6.3
2.3
2.8
2.9
5.9
2.8
3.2
17.9
21.3
9.6
9.9
11.7
19.3
10.3
-5.6
-14.2
151.7
52.4
46.6
138.4
13.8
12.9
328.3
44.1
17.4
366.1
9.2
-6.6
174.4
2.8
-8.8
123.0
96.6
129.2
-82.1
-
-66.2
73.7
3D AOI
Semiconductor
Inspection
Other
Net profit
Net margin
Growth (YoY)
Revenue
3D SPI
3D AOI
Semiconductor
Inspection
Other
Operating profit
Net profit
-17.9
62.4
19.0
134.8
23.1
-22.9
-2.7
-0.3
14.4
28.0
7.0
5.0
37.1
18.3
-0.8
-29.6
-25.2
51.7
79.8
-19.9
-56.4
23.7
-12.8
-39.1
-14.0
-20.5
-7.1
36.9
22.2
-13.4
14.6
125.3
65.6
15.1
-24.4
50.8
101.5
56.2
121.1
5.5
-10.5
-12.7
-0.3
50.7
49.5
83.7
9.3
88.3
8.0
90.2
6.6
74.4
20.1
71.6
23.3
78.4
17.3
74.0
22.9
73.2
24.0
50.5
48.0
68.8
29.6
63.2
34.1
61.1
35.8
84.0
11.3
74.6
21.6
61.1
36.7
5.4
1.8
0.9
2.9
1.7
3.0
0.6
-
-
-
0.6
1.0
2.6
1.4
0.4
1.6
1.9
2.3
2.5
3.4
1.4
2.5
2.8
1.5
1.6
2.2
2.1
2.1
2.4
1.9
% of revenue
3D SPI
3D AOI
Semiconductor
Inspection
Other
Source: Company data, KDB Daewoo Securities Research
Table 2. Annual earnings
Revenue
3D SPI
3D AOI
Semiconductor
Inspection
Other
Operating profit
OP margin
(Wbn, %)
09
10
11
12
13
14F
15F
26.9
71.2
80.2
100.8
103.9
134.8
164.0
25.8
-
66.8
2.2
73.4
3.3
84.7
11.4
77.5
22.5
82.3
49.4
85.2
74.2
-
1.1
1.9
2.6
1.4
0.5
2.0
1.1
1.1
1.6
2.1
2.5
2.5
2.6
2.3
19.1
19.3
20.4
17.8
26.8
35.1
8.4
26.8
24.1
20.2
17.1
19.9
21.4
Net profit
1.2
15.2
16.6
14.8
14.8
22.1
30.2
Net margin
Growth (YoY)
4.3
21.4
20.7
14.7
14.2
16.4
18.4
Revenue
-21.6
164.5
12.6
25.7
3.1
29.7
21.6
3D SPI
3D AOI
Semiconductor
Inspection
Other
-22.8
-
158.6
-
9.9
50.1
15.3
247.4
-8.4
96.9
6.2
120.2
3.5
50.0
-
-
71.9
33.7
-45.6
-61.6
270.0
177.0
0.3
43.2
37.1
18.3
-0.8
5.0
Operating profit
Net profit
-61.7
-85.7
739.2
1212.1
1.3
8.9
5.5
-10.5
-12.7
-0.3
50.7
49.5
31.0
36.6
96.0
93.8
91.6
84.0
74.6
61.1
52.0
-
3.1
4.1
11.3
21.6
36.7
45.2
-
1.6
2.4
2.6
1.4
0.4
1.2
4.0
1.5
1.9
2.1
2.4
1.9
1.6
% of revenue
3D SPI
3D AOI
Semiconductor
Inspection
Other
Source: Company data, KDB Daewoo Securities Research
KDB Daewoo Securities Research
2
August 7, 2014
Koh Young Technology
Figure 1. Revenue breakdown:
breakdown: 3D AOI’
AOI’s contribution is expected to grow
Semiconductor
Other
inspection
2%
1%
Semiconductor Other
2%
inspection
1%
3D AOI
22%
2015F
2013
3D SPI
52%
3D AOI
45%
3D SPI
75%
Source: Company data, KDB Daewoo Securities Research
Figure 2. Quarterly revenue rose to W30bn with the increase of 3D AOI sales
(Wbn)
40
Other
Semiconductor
3D AOI
3D SPI
30
20
10
0
1Q11
3Q11
1Q12
3Q12
1Q13
3Q13
1Q14
3Q14F
Source: Company data, KDB Daewoo Securities Research
Figure 3. Annual revenue trends and forecast
(Wbn)
200
3D SPI (L)
3D AOI (L)
Semiconductor inspection (L)
Other (L)
OP margin (R)
25
3D AOI equipment
is contributed to sale
150
74
orders of 3D SPI equipment
restore
100
(%)
30
20
15
50
67
73
10
11
85
78
82
85
12
13
14F
15F
10
26
0
5
09
Source: Company data, KDB Daewoo Securities Research
KDB Daewoo Securities Research
3
August 7, 2014
Koh Young Technology
Figure 5. Quarterly revenue breakdown by downstream
segment
Figure 4. Quarterly revenue by downstream segment
(Wbn)
40
30
Other
Semiconductor
Display
Auto
Other
Munitions/medicince
Display
Auto
Munitions/medicine
Communications technology
PC
Mobile devices
Semiconductor
Communications technology
PC
Mobile devices
100%
80%
20
60%
40%
10
20%
0
0%
1Q11
3Q11
1Q12
3Q12
1Q13
3Q13
1Q14
1Q11
3Q11
1Q12
3Q12
1Q13
3Q13
Source: Company data, KDB Daewoo Securities Research
Source: Company data, KDB Daewoo Securities Research
Figure 6. Quarterly revenue by region
Figure 7. Quarterly revenue breakdown by region
(Wbn)
40
China
Japan
Southeast Asia
Europe
U.S.
Domestic
China
Japan
Southeast Asia
Europe
U.S.
1Q14
Domestic
100%
80%
30
60%
20
40%
10
20%
0
0%
1Q11
3Q11
1Q12
3Q12
1Q13
3Q13
1Q11
1Q14
3Q11
1Q12
3Q12
1Q13
3Q13
Source: Company data, KDB Daewoo Securities Research
Source: Company data, KDB Daewoo Securities Research
Figure 8. Annual revenue by downstream segment
Figure 9. Annual revenue breakdown by region
Other
Munitions/medicince
Display
Auto
Semiconductor
Communications technology
PC
Mobile devices
100%
China
Japan
Southeast Asia
Europe
U.S.
1Q14
Domestic
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
0%
09
10
11
Source: Company data, KDB Daewoo Securities Research
KDB Daewoo Securities Research
12
13
09
10
11
12
13
Source: Company data, KDB Daewoo Securities Research
4
August 7, 2014
Koh Young Technology
Global peers’ earnings & valuation
Table 3. Semiconductor postpost-processing
processing companies’
companies’ earnings
Company
Mkt cap
EO Technics
Hanmi Semiconductor
868
394
Koh Young
Teradyne
Revenue
(Wbn, %)
Operating profit
OP margin
Net profit
13
14F
15F
13
14F
15F
13
14F
15F
13
14F
15F
232
192
377
307
497
349
43
13
96
50
133
57
18.6
7.0
25.5
16.2
26.8
16.2
34
11
82
40
110
46
367
104
135
164
18
27
35
17.3
20.0
21.3
15
22
30
3,739
1,563
1,701
1,854
209
330
413
13.4
19.4
22.3
181
241
315
Advantest
2,304
1,219
1,459
1,520
-396
102
124
-32.5
7.0
8.2
-387
76
96
Disco
Furukawa
2,283
1,503
1,143
10,153
1,144
8,560
1,198
8,911
189
277
209
232
229
288
16.5
2.7
18.3
2.7
19.1
3.2
132
61
146
86
161
154
Tripod Technology
CKD
1,044
629
1,503
823
1,456
819
1,565
848
106
86
103
87
116
98
7.1
10.4
7.0
10.7
7.4
11.6
88
59
92
57
103
64
118
72
82
88
10
12
13
14.1
14.9
14.7
7
8
9
7.5
14.2
15.1
Viscom
Average
Source: Bloomberg, KDB Daewoo Securities Research
Table 4. Semiconductor postpost-processing
processing companies’
companies’ valuation
Company
Mkt cap
EO Technics
Hanmi Semiconductor
Koh Young
ROE
(Wbn, %)
P/E
P/B
EV/EBITDA
13
14F
15F
13
14F
15F
13
14F
15F
13
14F
15F
868
394
15.6
6.2
29.9
20.4
29.7
20.8
25.5
32.7
10.6
9.9
7.9
8.6
3.7
2.0
2.8
1.9
2.0
1.6
9.8
12.9
8.1
6.8
6.1
6.0
367
16.1
20.2
22.9
16.9
16.6
12.2
2.5
3.1
2.5
10.7
11.0
8.1
Teradyne
Advantest
3,739
2,304
9.8
-23.8
11.0
6.1
8.0
7.1
24.7
-
15.1
26.4
12.6
20.9
1.7
1.7
1.7
1.6
1.6
1.5
7.0
-
5.3
12.0
4.6
10.8
Disco
2,283
1,503
10.4
2.5
11.4
5.1
11.6
8.6
18.5
34.1
15.6
16.6
14.2
9.7
1.8
0.8
1.7
0.8
1.5
0.7
8.8
8.5
7.7
9.2
7.1
8.0
1,044
9.1
10.2
10.9
12.9
11.2
10.0
1.1
1.1
1.1
4.4
4.1
3.8
629
118
9.7
-16.2
9.1
11.5
9.0
11.9
10.5
18.7
9.9
13.9
8.8
13.0
1.0
1.7
0.9
1.6
0.8
1.6
4.9
-
4.3
6.1
4.1
5.6
2.6
12.7
13.1
22.2
14.4
11.7
1.7
1.6
1.4
8.1
7.1
6.2
Furukawa
Tripod Technology
CKD
Viscom
Average
Source: Bloomberg, KDB Daewoo Securities Research
Figure 10.
10. Domestic peers’
peers’ yearyear-toto-date performance
Figure 11.
11. Global peers’
peers’ yearyear-toto-date performance
(1/2/14 = 100)
200
Koh Young
(1/2/14 = 100)
200
Koh Young
Tripod
Advantest
Furukawa
EO Technics
Hanmi Semiconductor
150
150
100
100
CKD
Viscom
Teradyne
Disco
50
50
1/14
2/14
3/14
4/14
Source: KDB Daewoo Securities Research
KDB Daewoo Securities Research
5/14
6/14
7/14
8/14
1/14
2/14
3/14
4/14
5/14
6/14
7/14
8/14
Source: KDB Daewoo Securities Research
5
August 7, 2014
Koh Young Technology
Koh Young Technology (098460 KQ/Not Rated)
Comprehensive Income Statement (Summarized)
(Wbn)
Revenue
12/12
Statement of Financial Condition (Summarized)
12/13 12/14F 12/15F
12/12
12/13
12/14F
12/15F
Current Assets
76
94
116
140
74
90
Cash and Cash Equivalents
AR & Other Receivables
4
33
11
38
19
45
31
51
45
54
Inventories
15
18
20
22
27
27
35
35
Other Current Assets
Non--Current Assets
Non
24
27
27
28
32
31
36
36
-1
1
0
-2
1
0
-1
1
0
Investments in Associates
18
17
25
34
Total Assets
3
15
2
15
3
22
4
30
Current Liabilities
AP & Other Payables
101
104
135
164
46
55
49
55
63
72
SG&A Expenses
34
37
Operating Profit (Adj)
Operating Profit
20
20
18
18
NonNon-Operating Profit
Net Financial Income
Net Gain from Inv in Associates
-2
1
0
Pretax Profit
Income Tax
Profit from Continuing Operations
Cost of Sales
Gross Profit
Profit from Discontinued Operations
Net Profit
Controlling Interests
Non-Controlling Interests
0
0
0
0
15
15
15
15
22
22
30
30
(Wbn)
2
2
3
3
15
6
15
7
18
6
22
5
103
121
147
175
15
11
16
13
23
19
25
22
Short-Term Financial Liabilities
0
0
0
0
Other Current Liabilities
Non--Current Liabilities
Non
4
4
3
5
4
5
3
5
Property, Plant and Equipment
Intangible Assets
0
0
0
0
Long-Term Financial Liabilities
0
0
0
0
Total Comprehensive Profit
Controlling Interests
14
14
14
14
22
22
30
30
Other Non-Current Liabilities
Total Liabilities
4
19
5
21
5
28
5
31
Non-Controlling Interests
EBITDA
0
22
0
20
0
29
0
37
Controlling Interests
Capital Stock
84
4
100
4
119
4
145
4
FCF (Free Cash Flow)
9
12
20
22
Capital Surplus
20
20
20
20
EBITDA Margin (%)
Operating Profit Margin (%)
21.8
19.8
19.2
17.3
21.5
20.0
22.6
21.3
Retained Earnings
Non--Controlling Interests
Non
61
0
73
0
92
0
118
0
Net Profit Margin (%)
14.9
14.4
16.3
18.3
Stockholders' Equity
84
100
119
145
12/12
17.0
10.4
12/13
16.9
10.8
12/14F
16.6
12.7
12/15F
12.2
9.9
2.9
10.1
2.5
10.7
3.1
11.0
2.5
8.1
Cash Flows (Summarized)
(Wbn)
Cash Flows from Op Activities
Net Profit
Forecasts/Valuations (Summarized)
12/12
11
15
12/13 12/14F 12/15F
12
24
27
15
22
30
P/E (x)
P/CF (x)
Non-Cash Income and Expense
Depreciation
9
1
8
1
7
1
7
1
P/B (x)
EV/EBITDA (x)
Amortization
1
1
1
1
EPS (W)
1,105
1,103
1,646
2,248
7
-10
6
-8
5
-3
5
-7
CFPS (W)
BPS (W)
1,804
6,418
1,721
7,448
2,152
8,859
2,771
10,761
Others
Chg in Working Capital
Chg in AR & Other Receivables
-8
-6
-6
-6
DPS (W)
200
350
350
350
Chg in Inventories
Chg in AP & Other Payables
-2
0
-3
3
-2
5
-2
2
Payout ratio (%)
Dividend Yield (%)
12.0
1.1
21.2
1.9
21.0
1.3
15.4
1.3
Income Tax Paid
-4
-3
-3
-4
Revenue Growth (%)
26.3
3.0
29.8
21.5
Cash Flows from Inv Activities
Chg in PP&E
-8
-2
-7
0
-12
-4
-11
-5
4.8
5.3
-9.1
-10.0
45.0
50.0
27.6
29.6
Chg in Intangible Assets
-2
-2
0
0
EPS Growth (%)
-13.7
-0.2
49.2
36.6
Chg in Financial Assets
Others
-5
1
-4
-1
-6
-2
-5
-1
Accounts Receivable Turnover (x)
Inventory Turnover (x)
3.6
7.2
3.1
6.3
3.4
7.2
3.6
7.9
Cash Flows from Fin Activities
-2
1
-3
-5
Accounts Payable Turnover (x)
6.8
5.9
5.1
4.7
Chg in Financial Liabilities
Chg in Equity
2
0
0
0
ROA (%)
ROE (%)
15.6
19.2
13.2
16.1
16.5
20.2
18.8
22.9
Dividends Paid
ROIC (%)
31.6
25.7
35.7
42.4
Liability to Equity Ratio (%)
22.5
21.3
23.4
21.2
EBITDA Growth (%)
Operating Profit Growth (%)
-2
-2
-3
-5
Others
-
-
-
-
Increase (Decrease) in Cash
1
6
9
11
Current Ratio (%)
519.2
567.8
508.2
550.3
Beginning Balance
Ending Balance
3
4
4
11
11
19
19
31
Net Debt to Equity Ratio (%)
Interest Coverage Ratio (x)
-31.8
0.0
-36.6
0.0
-42.4
0.0
-45.3
0.0
Source: Company data, KDB Daewoo Securities Research estimates
KDB Daewoo Securities Research
6
August 7, 2014
Koh Young Technology
APPENDIX 1
Important Disclosures & Disclaimers
2-Year Rating and Target Price History
Disclosures
As of the publication date, Daewoo Securities Co., Ltd and/or its affiliates do not have any special interest with the subject company and do not own 1% or
more of the subject company's shares outstanding.
Analyst Certification
The research analysts who prepared this report (the “Analysts”) are registered with the Korea Financial Investment Association and are subject to Korean
securities regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws and regulations thereof. Opinions
expressed in this publication about the subject securities and companies accurately reflect the personal views of the Analysts primarily responsible for this
report. Daewoo Securities Co., Ltd. policy prohibits its Analysts and members of their households from owning securities of any company in the Analyst’s
area of coverage, and the Analysts do not serve as an officer, director or advisory board member of the subject companies. Except as otherwise specified
herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been
promised the same in connection with this report. No part of the compensation of the Analysts was, is, or will be directly or indirectly related to the specific
recommendations or views contained in this report but, like all employees of Daewoo Securities, the Analysts receive compensation that is impacted by
overall firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading and
private client division. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of
Disclaimers
This report is published by Daewoo Securities Co., Ltd. (“Daewoo”), a broker-dealer registered in the Republic of Korea and a member of the Korea Exchange.
Information and opinions contained herein have been compiled from sources believed to be reliable and in good faith, but such information has not been
independently verified and Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or
correctness of the information and opinions contained herein or of any translation into English from the Korean language. If this report is an English
translation of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this
report. Daewoo, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising from the use hereof. This
report is for general information purposes only and it is not and should not be construed as an offer or a solicitation of an offer to effect transactions in any
securities or other financial instruments. The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of
the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this report would violate any
laws and regulations or subject Daewoo and its affiliates to registration or licensing requirements in any jurisdiction should receive or make any use hereof.
Information and opinions contained herein are subject to change without notice and no part of this document may be copied or reproduced in any manner or
form or redistributed or published, in whole or in part, without the prior written consent of Daewoo. Daewoo, its affiliates and their directors, officers,
employees and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a
purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or
agents. Daewoo and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment
banking, market-making or other financial services as are permitted under applicable laws and regulations. The price and value of the investments referred to
in this report and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide to
future performance. Future returns are not guaranteed, and a loss of original capital may occur
Distribution
United Kingdom: This report is being distributed by Daewoo Securities (Europe) Ltd. in the United Kingdom only to (i) investment professionals falling within
Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth companies and other
persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the Order (all such persons together being referred to as “Relevant
Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or any of its
contents.
United States: This report is distributed in the U.S. by Daewoo Securities (America) Inc., a member of FINRA/SIPC, and is only intended for major institutional
investors as defined in Rule 15a-6(b)(4) under the U.S. Securities Exchange Act of 1934. All U.S. persons that receive this document by their acceptance
thereof represent and warrant that they are a major institutional investor and have not received this report under any express or implied understanding that
they will direct commission income to Daewoo or its affiliates. Any U.S. recipient of this document wishing to effect a transaction in any securities discussed
herein should contact and place orders with Daewoo Securities (America) Inc., which accepts responsibility for the contents of this report in the U.S. The
securities described in this report may not have been registered under the U.S. Securities Act of 1933, as amended, and, in such case, may not be offered or
sold in the U.S. or to U.S. persons absent registration or an applicable exemption from the registration requirements.
Hong Kong: This document has been approved for distribution in Hong Kong by Daewoo Securities (Hong Kong) Ltd., which is regulated by the Hong Kong
Securities and Futures Commission. The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This report is for
distribution only to professional investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance of Hong Kong (Cap. 571, Laws
of Hong Kong) and any rules made thereunder and may not be redistributed in whole or in part in Hong Kong to any person.
All Other Jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Daewoo or
its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject Daewoo and its
affiliates to any registration or licensing requirement within such jurisdiction.
KDB Daewoo Securities Research
7
August 7, 2014
Koh Young Technology
KDB Daewoo Securities International Network
Daewoo Securities Co. Ltd. (Seoul)
Head Office
34-3 Yeouido-dong, Yeongdeungpo-gu
Seoul 150-716
Korea
Tel: 82-2-768-3026
Daewoo Securities (Hong Kong) Ltd.
Two International Finance Centre
Suites 2005-2012
8 Finance Street, Central
Hong Kong, China
Tel: 85-2-2845-6332
Daewoo Securities (America) Inc.
320 Park Avenue
31st Floor
New York, NY 10022
United States
Tel: 1-212-407-1000
Daewoo Securities (Europe) Ltd.
41st Floor, Tower 42
25 Old Broad St.
London EC2N 1HQ
United Kingdom
Tel: 44-20-7982-8000
Daewoo Securities (Singapore) Pte. Ltd.
Six Battery Road #11-01
Singapore, 049909
Tel: 65-6671-9845
Tokyo Branch
7th Floor, Yusen Building
2-3-2 Marunouchi, Chiyoda-ku
Tokyo 100-0005
Japan
Tel: 81-3- 3211-5511
Beijing Representative Office
2401A, 24th Floor, East Tower, Twin Towers
B-12 Jianguomenwai Avenue
Chaoyang District, Beijing 100022
China
Tel: 86-10-6567-9299
Shanghai Representative Office
Room 38T31, 38F SWFC
100 Century Avenue
Pudong New Area, Shanghai 200120
China
Tel: 86-21-5013-6392
Ho Chi Minh Representative Office
Suite 2103, Saigon Trade Center
37 Ton Duc Thang St,
Dist. 1, Ho Chi Minh City,
Vietnam
Tel: 84-8-3910-6000
Daewoo Investment Advisory (Beijing) Co., Ltd.
Daewoo Securities (Mongolia) LLC
PT. Daewoo Securities Indonesia
2401B, 24th Floor, East Tower, Twin Towers
B-12 Jianguomenwai Avenue,
Chaoyang District, Beijing 100022
China
#406, Blue Sky Tower, Peace Avenue 17
1 Khoroo, Sukhbaatar District
Ulaanbaatar 14240
Mongolia
Equity Tower Building Lt.50
Sudirman Central Business District Jl.
Jendral Sudirman Kav. 52-53, Jakarta Selatan
Indonesia 12190
Tel: 86-10-6567-9699
Tel: 976-7011-0807
Tel: 62-21-515-1140
KDB Daewoo Securities Research
8

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