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Ships, LCDs, finance top stock picks of next year

Jan 02,2008
Stocks of shipbuilders, liquid crystal display monitor makers and finance companies will be the favorites of local stock investors in 2008, according to Korean brokerage firms yesterday.
In their year-opening reports, securities companies recommended buying the stocks of shipbuilders, saying the industry will carry the momentum it enjoyed last year into this one.
They also issued buy ratings for LCD monitor producers, which they predicted will see their highest-ever profits this year.
Among finance companies, securities companies recommended buying stock in insurance and brokerage firms, predicting they will record strong performances in the new year.
“We maintain ‘overweight’ on the shipbuilding industry in 2008 as it has the potential to maintain high growth and profitability based on shipbuilders’ strong performances over the past three years,” said Sung Ki-jong and Park Joon-woo, researchers at Daewoo Securities, in a report.
Cho Yong-joon, an analyst at Shinyoung Securities, said the high demand for ships in China will continue to benefit local shipbuilders.
LCD monitor makers are also expected to benefit from demand in China. “Only 5 percent of Chinese households have LCD televisions. This is quite low compared to 20 percent for personal computers,” said Kim Hak-ju, a researcher at Samsung Securities. “Considering high demand in China for high quality televisions ahead of the 2008 Beijing Olympics, Korean LCD monitor producers will be able to grow by taking advantage of increasing exports to China.”
The continuing cash flow from savings accounts into mutual funds or investment-type insurance products is a good sign for brokerages and insurance companies, brokerages said.
Shim Jae-yup, a researcher at Meritz Securities was optimistic about brokerages but said their success depended on stability in global stock markets.
Daewoo Securities predicted that operating profits at securities companies will rise by as much as 16 percent.


By Moon Gwang-lip Staff Reporter [joe@joongang.co.kr]


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