VIP Asset Management CEO Choi Jun-cheol.
[Courtesy of VIP Asset Management]
VIP Asset Management, a South Korean value-oriented investment firm, recently expanded its holdings in companies including Hyundai Green Food, F&F, and Hansol Chemical. The company’s strategy of identifying undervalued blue-chip stocks and holding them for the long term is bringing a fresh perspective to the domestic asset management industry.
According to an electronic disclosure filing with the Financial Supervisory Service (FSS) on Monday, VIP Asset Management recently acquired 1,835,028 shares of Hyundai Green Food, securing a 5.42 percent stake in the company. VIP Asset Management has now become one of the major shareholders alongside the largest shareholder, Chung Ji-sun, Chairman of the Hyundai Department Store Group (23.8 percent), Vice Chairman Chung Kyo-sun (12.7 percent), and Hyundai GF Holdings (10.1 percent).
Hyundai Green Food is known for its stable cash generation, upping expectations of steady financial performance growth. Heungkuk Securities estimates that Hyundai Green Food’s revenue and operating profit for the third quarter of 2023 will increase by 15.6 percent and 36.8 percent respectively, compared to the same period last year.
VIP Asset Management also increased its stake in clothing company F&F, raising its ownership to 5.27 percent or 2,018,704 shares. F&F’s key brand MLB is expected to re-enter its peak season, with Hong Kong and China market revenues for the third quarter increasing by 71 percent and 39 percent respectively compared to a year ago. Despite such promising prospects, F&F has been undervalued, with a forward PER of only 8 to 9 times.
“We consider the CEO a crucial investment factor. We trust F&F Chairman Kim Chang-soo for his management philosophy and capabilities,” VIP Asset Management CEO Choi Jun-cheol said.
According to Korea Fund Ratings, VIP Asset Management’s first public offering fund, “VIP Korean Value Investment Fund,” attracted the highest amount of funds (8.4 billion won) among domestic equity funds. The fund has seen inflows of 77.6 billion won in the past three months. With a three-month return rate of 7.85 percent, the fund even outperformed the benchmark KOSPI (3.5 percent).
By Cha Chang-hee and Minu Kim
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