Added to YB: 2025-06-09
Pitch date: 2025-06-06
SHG [bullish]
Shinhan Financial Group Co., Ltd.
Author Info
Under the Hood is a private investor (ex-NYSE, Bridgewater, Alliance Bernstein) writing about stocks. Sign up for their newsletter.
Company Info
Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea, Vietnam, and Japan.
Market Cap
KRW 45.0T
Pitch Price
N/A
Price Target
N/A
Dividend
3.71%
EV/EBITDA
N/A
P/E
9.30
EV/Sales
N/A
Sector
Banks
Category
value
Shinhan FG: executes my favorite Banking Playbook
SHG: Korean bank at 7x P/E, 0.61x TBV w/ 9.5% RoTCE. CEO shifted to shareholder returns: 40% payout (24% dividend, 16% buyback) in 2024, targeting 50% by 2027. Shinhan Bank (60% capital, 80% income) leads w/ 15.5% profit CAGR since 2020. Model shows $65-$84 target (+45-85% upside) by 2028 assuming 0.8x TBV rerating. Korea Value-Up program + dividend tax reform = tailwinds. Risks: rising NPLs (0.81% of assets), RE PF exposure, Korea politics volatility.
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