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研报英文原文证据摘录

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nancials. 2Q26 results should be broadly solid on (i) resilient NII with modest NIM uplift and

steady loan growth, (ii) stronger non-interest income on capital markets-related fees, and (iii) contained credit costs with

provisioning broadly in line with full-year guidance. Beyond earnings, we expect shareholder returns to be the key catalyst: as

prior buybacks conclude in July, another round of buyback/cancellation announcements looks likely—potentially larger at KB

and Shinhan on stronger earnings prints—while Hana could also draw attention on a Value-Up update (introducing a

shareholder return formula and refreshed ROE targets, broadly converging toward KB/Shinhan). With large FGs still trading at

<1.0x P/B (vs. 11–12% mid-term ROE trajectory), we see ample upside from here and recommend investors accumulate

KB, Shinhan and Hana (all OWs) to capture an extended re-rating rally on sustainable ROE trending higher lifting fair P/B.

Korea Nuclear EPC (Sonny Lee), South Korea

2Q nuclear orders remain muted; reshuffle our nuclear order estimates

2Q order intake was solid but nuclear orders remained muted, with only a small KEPCO E&C maintenance contract (W33bn)

from KHNP. Non-nuclear orders were strong: Doosan Enerbility's (Doosan) US steam turbine orders and Hyundai E&C's

(HDEC) W10tn intake, including the Apgujeong 3rd District reconstruction (W5.6tn). We are reshuffling our order estimates,

pushing back our overseas nuclear project assumptions by 1-2 years due to geopolitical tensions, trimming 2026-28E

orderbook estimates and lowering price targets. 2Q earnings should be broadly in-line with consensus, with limited downside

risk as problematic overseas projects near completion. We maintain a constructive sector view on all three names with