The 720 KBFG & Shinhan, India Auto Parts II, China Value Retailers, Baycurrent, Samsung Biologics, Indigo, DISCO, Global Mar...

Equity Research 24 July 2026 | 7:26AM HKT

The 720: KBFG & Shinhan, India Auto Parts II, China Value Retailers, Baycurrent, Samsung Biologics, Indigo, DISCO, Global Market Views, Oil

In Focus | KBFG & Shinhan Michael Snaith | KB Financial Group – Record 2Q26 Profits and Sector-Leading Return Profile – Buy Goldman Sachs (Asia) L.L.C.

(on CL). We maintain our 12m TP of W214,000 following a record 2Q26 net profit of Caleb Chan | W1,992bn, which beat our estimates by 15% driven by robust fee income growth Goldman Sachs (Asia) L.L.C.

and stable credit costs. The group achieved a near 14% ROE in the first half, showcasing the benefits of a highly profitable and diversified non-bank portfolio that offset a slight 3bp quarter-over-quarter dip in bank margins. With management guiding for mid-term ROE to reach 13% and allocating W880bn for second-half shareholder returns, we expect the company to benefit disproportionately from capital market strength and further widen its total shareholder return gap versus large bank peers. Sinyoung Park

Shinhan Financial Group – 2Q26 earnings beat and W700bn buyback – Buy. Shinhan reported a strong 2Q26 net profit of W1,820bn that beat our estimates by 19% on robust fee income and lower credit costs. With the CET1 ratio improving to 13.43%, the group announced a W700bn share buyback, and management reiterated plans for further buybacks in 4Q26 to prioritize share count reduction while valuation remains below book value. We project a 24% yoy increase in the annual total shareholder return amount for 2026E, and expect more pronounced net interest margin expansion in the second half aligned with management guidance and rate hike expectations. 12m TP of W123,000. Sinyoung Park

Global Macro & Strategy | Distinguishing AI Risks, Rising Equity Allocations, Oil

Global Markets – Distinguishing AI Risks: Size of the Pie vs. Share of the Pie. We believe distinguishing between aggregate shocks to the overall value of AI and distributional shocks to how that value is shared is critical for understanding market vulnerabilities and hedging strategies. Aggregate shocks, such as slower adoption rates or macro tightening, reduce the total expected value of AI gains, broadly impacting US equities, pushing yields lower, and driving index volatility higher. Conversely, distributional shocks, like shifts in capital spending beneficiaries or increased competition, reallocate value among hyperscalers and suppliers with limited cross-asset or index-level impacts. Consequently, investors with broad equity exposure can effectively use macro assets to hedge aggregate risks, while those with concentrated AI positions face greater challenges protecting against distributional shifts. Dominic Wilson

Cross Asset Strategy – Tracking Rising Equity Allocations for Asset Owners. We

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

highlight that global equity allocations among households, pensions, and insurance companies are at or near record highs, driven by strong passive drift from recent equity outperformance and regulatory shifts favoring defined contribution structures. While US household equity holdings have overtaken real estate as a share of net financial wealth, European and Scandinavian institutional exposures are also rising due to easing solvency limits and pension reforms. To manage these elevated equity allocations amid high valuations and macro uncertainty, we recommend strengthening portfolio risk mitigation through selective real assets, regional and style diversification, long-dated call options, and low-correlation alternatives. Christian Mueller-Glissmann

Oil Analyst – New Upside Price Risks Amid Red Sea Tensions. We keep our 2026Q4 Brent forecast…