What changed
$SHG — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $4.7T | EPS $2.24 vs $2.18 🟢
💡 Consensus views Korean banks as permanently undervalued due to low ROEs, poor governance, and macro risks. Our variant view is that the earnings surprise is not a one-off: net interest margins are stabilizing, credit costs are manageable, and Shinhan is actively returning capital (dividends/buybacks).
📉 Reward/risk: 2.0:1
🏢 Business Quality: 6/10 - Diversified financial holding company with leading market shares in banking, cards, and securities; well-capitalized and profitable, but operating in a mature, competitive market with regulatory headwinds and limited growth.
📊 Valuation: cheap — P/B ~0.5x (vs. 5-year average 0.6x, global bank peers 0.8–1.2x); P/E ~7.5x based on TTM EPS of ~$8.9 (annualized quarterly beat).
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/SHG0622