JP Morgan has acquired a stake in Innocean, the marketing affiliate of Hyundai Motor Group. BlackRock raised its HLB holding to 6%, while Capital Group purchased shares of KT&G. Global investment banks (IBs) and asset managers with long-term investment orientations are successively investing in Korean listed companies.
According to the Financial Supervisory Service's electronic disclosure system Friday, JP Morgan Securities, a subsidiary of JP Morgan, acquired a 6.2% stake in Innocean through open-market purchases and other means. Innocean is an integrated marketing company belonging to Hyundai Motor Group. BlackRock Fund Advisors, a BlackRock affiliate, raised its HLB holding from 5.01% to 6.05%, while large U.S. asset manager Capital Group increased its KT&G stake from 5.61% to 7.21%.
Stake purchases of Korean listed companies by global IBs and asset managers have been continuing. In addition to HLB, BlackRock recently filed new reports on acquisitions of stakes in Hankook Tire & Technology, Yuhan Corporation, and Korea Investment Holdings. The purpose of the share holdings was specified as simple investment.
Companies attracting foreign capital mostly share characteristics of solid earnings fundamentals combined with active shareholder returns. KT&G (033780.KS), in which Capital Group, BlackRock, First Eagle, and the Government of Singapore Investment Corporation (GIC) each hold more than 5% stakes, is regarded as a stock that combines high earnings stability, shareholder return policies, and growth. On a consolidated basis, it posted revenue of 1.7036 trillion won and operating profit of 364.5 billion won in the first quarter this year, with earnings rising 14.3% and 27.6% respectively from the first quarter of last year, and it has decided to spend 3.7 trillion won on dividends and share buybacks during 2024-2027. With first-quarter overseas cigarette business revenue of 559.6 billion won, up 24.6% from the same period last year, the company is also assessed as having growth potential.
