Investors might want to bet on Shinhan Financial (SHG) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the sys ...

Investors interested in Banks - Foreign stocks are likely familiar with Shinhan Financial (SHG) and Erste Group Bank AG (EBKDY) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our St ...

FY 2025 Business Results FY2025 Highlight B/S P&L Digital/SDGs Value-up Plan Appendix FY2026 Capital Policy 2026 Forecast | CET1 Ratio | (Preliminary) | Quarterly DPS + Additional DPS FY2025 Net Income / EPS | | --- | --- | --- | | 13.33% | (Δ22bp QoQ, +32bp YTD) | 4.97 Wtn / KRW 10,220 KRW 570 + 310 (Record Date: Feb 20th) | | RWA | | Share Buyback & Cancellation for 1H26 ROE / ROTCE* (FY2025) | | 353.3 Wtn | (+1.5% QoQ, +3.2% YTD) | 9.1% / 10.3% 700 Wbn (Including Jan. 200 Wbn buyback) | | Capital Ratio | ...

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Group 1: Market Overview - U.S. investors are facing challenges including high tech stock valuations, hawkish Federal Reserve commentary, and unpredictable tariff policies from the Trump administration [1] - Despite Nvidia's strong earnings, the market experienced a sell-off, indicating potential volatility ahead [2] - High-quality international stocks have emerged as a refuge from U.S. market fluctuations [2] Group 2: Shinhan Financial Group - Shinhan Financial Group, a South Korean banking conglomerate, has a market cap of $25.5 billion and reported strong growth in interest income and net interest margins in Q3 2025 [3][5] - The company is trading at a Price-to-Earnings (P/E) ratio of 7.94 and a Price-to-Book (P/B) value of 0.5, with a dividend yield exceeding 3% [5] Group 3: POSCO Holdings - POSCO Holdings, valued at $16 billion, is transitioning from traditional steel manufacturing to lithium battery production, which offers higher margins [6][8] - The company has secured deals for lithium extraction in the U.S. and mining operations in Australia and Argentina, yet it trades at 14 times forward earnings and 0.4 times book value [6] Group 4: PLDT Inc. - PLDT Inc., the largest telecommunications company in the Philippines, offers a range of services and has developed the popular PayMaya app, now rebranded as Maya [9] - The stock trades at 7.5 times forward earnings and 1.2 times sales, with a dividend yield over 7%, presenting a potential buying opportunity after a recent drop [11] Group 5: United Microelectronics Corp. - United Microelectronics Corp. is a key player in the semiconductor foundry market, with a market share of 5% and major clients including Texas Instruments and Intel [12][14] - The stock is trading at 14 times forward earnings and 2.4 times sales, below industry averages, and has shown improved earnings performance in Q3 2025 [14]

Financial Data and Key Metrics Changes - The Common Equity Tier 1 (CET1) ratio stood at 13.56% as of Q3 2025, with Risk-Weighted Assets (RWA) at 570 billion [2] - The Return on Equity (ROE) was reported at 11.1%, showing a slight increase from the previous period [3] - The Net Interest Margin (NIM) improved by 12 basis points to 1.56% [4] Business Line Data and Key Metrics Changes - The Non-Performing Loan (NPL) ratio was reported at 2.8%, indicating a stable credit quality environment [5] - The company achieved a Profitability Factor (PF) of 30.1%, reflecting strong operational efficiency [6] Market Data and Key Metrics Changes - The company noted a 4% growth in its market share, driven by strategic initiatives and competitive positioning [10] - The NIM is expected to remain stable, with projections indicating a range of 4% to 6% for the upcoming quarters [10] Company Strategy and Development Direction - The management emphasized a focus on enhancing digital banking services to improve customer engagement and operational efficiency [12] - The company is strategically positioning itself to capitalize on emerging market opportunities, particularly in the fintech sector [13] Management Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the economic recovery and its potential positive impact on loan demand and profitability [14] - The company anticipates a stable regulatory environment, which should support its growth initiatives moving forward [19] Other Important Information - The company is actively managing its RWA to optimize capital efficiency, with a focus on maintaining a robust CET1 ratio [21] - There is an ongoing commitment to improving asset quality, with measures in place to monitor and manage NPLs effectively [20] Q&A Session Summary Question: What are the expectations for loan growth in the next quarter? - Management indicated that they expect loan growth to remain strong, driven by increased consumer and business demand [10] Question: How is the company addressing competitive pressures in the market? - The company is enhancing its digital offerings and customer service to differentiate itself from competitors [12] Question: What are the key risks the company is monitoring? - Management highlighted credit risk and regulatory changes as primary concerns, with strategies in place to mitigate these risks [19]

3Q 2025 Business Results CET1 Ratio (Preliminary) 13.56% (Δ6bp QoQ) RWA 348.0 Wtn (+2.3% QoQ) 3Q25 Net Income / EPS 1.42 Wtn / KRW 12,196 ROE / ROTCE (3Q25) 11.1% / 12.5% DPS KRW 570 (Record Date: November 4th ) Share Buyback for FY2025 1.25 Wtn (Completion Rate 74.4%) CET1 ratio remained stable at 13.56%(Δ6bp QoQ) despite market uncertainties Group RWA increased by +8.0 Wtn (+2.3% QoQ) due to KRW depreciation and loan growth, but remains managed within annual budget plan : KRW loan balance increased by +8. ...

Core Insights - Global equity markets experienced broad positive returns in Q3 2025, driven by resilient corporate earnings, enthusiasm for AI, and the U.S. Federal Reserve's first interest rate cut of the year [3][21] - Emerging markets, particularly China, led the gains, supported by a U.S. trade truce and strength in the tech sector [3][4] - The Polaris Global Equity Composite gained 5.04% (net of fees) for the quarter, underperforming the MSCI World Index, which returned 7.36% [5][6] Market Performance - Developed markets saw weaker currencies benefiting export-oriented indices, with Japan's TOPIX Index up 11.0% and the U.K.'s FTSE All-Share Index up 6.9% [4] - The U.S. market, represented by the S&P 500 Index, gained over 8%, primarily due to tech and communication stocks [4] - France and Germany underperformed due to geopolitical and fiscal concerns, with tepid growth projections under new U.S. trade policy [4] Sector Analysis - The healthcare sector was the best performer, with notable gains from pharmaceutical stocks, while financials, consumer discretionary, and IT also contributed positively [5][6] - Health insurers faced challenges, with UnitedHealth Group and CVS Health posting over 10% returns, while Elevance Health's shares dropped sharply due to profit guidance cuts [7] - In IT, Samsung Electronics excelled with strong performance in HBM technology and a significant deal with Tesla for AI chip manufacturing [11] Company Highlights - United Therapeutics Corp. was a top contributor to portfolio performance, driven by positive clinical trial results for its drug Tyvaso, potentially adding $4-5 billion in peak sales [6] - AbbVie, Inc. expects high single-digit revenue growth through 2029, with flagship drugs projected to exceed $31 billion in sales by 2027 [6] - The Carlyle Group Inc. outperformed in the financial sector, up over 20% due to strong fee-based credit and secondaries business [8] Investment Strategy - The current economic environment is characterized by a "two-speed" economy, with a concentrated AI-driven boom amidst subdued growth in other sectors [21][22] - Financials are seen as attractive due to stable net interest margins and loan growth, while defensives like consumer staples and healthcare are expected to perform well [22] - Opportunities in economically-sensitive sectors are being explored, with a focus on industrials benefiting from AI integration and supply chain modernization [22][23]

Group 1 - The core viewpoint is a bullish outlook on Shinhan Financial Group Co., Ltd. (NYSE: SHG) (055550.KS), supported by an analysis of the rate environment, corporate legislation revisions, and capital allocation outlook [1][2]. Group 2 - The research service Asia Value & Moat Stocks targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1][2]. - The service provides a range of watch lists with monthly updates, particularly emphasizing investment opportunities in the Hong Kong market [2].

Core Viewpoint - The article compares Shinhan Financial (SHG) and National Australia Bank Ltd. (NABZY) to determine which stock represents a better undervalued investment opportunity [1] Group 1: Zacks Rank and Earnings Outlook - SHG has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while NABZY has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting that SHG is experiencing an improving earnings outlook [3][7] Group 2: Valuation Metrics - SHG has a forward P/E ratio of 6.51, significantly lower than NABZY's forward P/E of 18.57 [5] - SHG's PEG ratio is 0.53, while NABZY's PEG ratio is 9.83, indicating that SHG is expected to grow earnings at a more favorable rate relative to its price [5] - SHG's P/B ratio is 0.56, compared to NABZY's P/B of 2.16, further suggesting that SHG is undervalued [6] - Based on these valuation metrics, SHG holds a Value grade of B, while NABZY has a Value grade of D [6]