Hanwha shares rose more than 4% on the 23rd. The move appears to reflect brokerages' analysis that the discount remains high even after the spin-off. Hanwha Group stocks were also strong.
As of 9:51 a.m. that day on the Korea Exchange, Hanwha was trading at 120,400 won, up 5,400 won (4.7%) from the previous session.
At the same time, Hanwha Galleria (11.43%), Hanwha Engine (4.97%), Hanwha Life Insurance (6.96%), Hanwha Galleria preferred (26.98%), and Hanwha General Insurance (5.54%)—Hanwha Group stocks—were also strong.
Hanwha said on the 14th that it will carry out a spin-off to create a surviving entity covering the defense, shipbuilding and marine, energy, and financial institutional sectors, and a new holding company that includes the tech and life segments, "Hanwha Machinery & Service Holdings."
After news of the spin-off, Hanwha Group stocks showed strength. Following the spin-off, the business structure was clarified around defense and energy, prompting a revaluation of value.
After fluctuating, Hanwha Group stocks rose again that day after NH Investment & Securities said the discount remains high even after Hanwha's spin-off.
Lee Seung-young, an analyst at NH Investment & Securities, said, "Despite the share price rise following the announcement of the spin-off and plans to enhance corporate value, the discount versus current net asset value (NAV) is 58.9%, still high compared with other holding companies," adding, "Further narrowing of the discount is expected."