Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

Samsung Electronics Pref Shares / Event-Driven

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

Samsung Electronics Pref Shares (005935 KS)

<ul>
<li>Local traders see interest rate cuts and value-up disclosures as key for timing Samsung Electronics 1P discount narrowing.</li>
<li>Samsung's only realistic value-up goal beyond 50% FCF return is improving ROE, likely through a pref-skewed buyback or cancellation program.</li>
<li>If Samsung announces a value-up plan during the Bank of Korea's rate cuts, local traders expect the 1P discount to reverse, targeting October-November for position entry.</li>
</ul>


Local traders see interest rate cuts and value-up disclosures as key for timing Samsung Electronics 1P discount narrowing.
Samsung's only realistic value-up goal beyond 50% FCF return is improving ROE, likely through a pref-skewed buyback or cancellation program.
If Samsung announces a value-up plan during the Bank of Korea's rate cuts, local traders expect the 1P discount to reverse, targeting October-November for position entry.


Local Market Observations on Timing Samsung Electronics 1P Discount Narrowing

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Amorepacific Corporation develops, manufactures, and exports skin care, make-up, and fragrance products. The Company also produces and markets personal care and health-related products, such as shampoos, soaps, toothpastes, and health teas.

<ul>
<li>A double dose of StubWorld this week: both the implied stub for <strong><a href="https://www.smartkarma.com/entities/amorepacific-group" target="_blank" data-smartkarma-citation="entities:12179:1" rel="noopener">Amorepacific Group (002790 KS)</a></strong> and the simple ratio (Group/<strong><a href="https://www.smartkarma.com/entities/amorepacific-corp" target="_blank" data-smartkarma-citation="entities:20854:1" rel="noopener">Amorepacific Corp (090430 KS)</a></strong>) are around lifetime low levels.</li>
<li>Preceding my comments on Amorepacific are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


A double dose of StubWorld this week: both the implied stub for Amorepacific Group (002790 KS) and the simple ratio (Group/Amorepacific Corp (090430 KS)) are around lifetime low levels.
Preceding my comments on Amorepacific are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld's: Amorepacific's NAV Discount Plumbs New Multi-Year Low

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

Hyundai Motor Company manufactures, sells, and exports passenger cars, trucks, and commercial vehicles. The Company also sells various auto parts and operates auto repair service centers throughout South Korea. Hyundai Motor provides financial services through its subsidiaries.

<ul>
<li>In this insight, we discuss numerous gap trades involving Korean preferred and common shares in 3Q 2024.</li>
<li>The recent push for Korea Value Up program has helped to push up prices of numerous Korean preferred stocks including <a href="https://www.smartkarma.com/entities/hyundai-motor-co-44d5ac4e-94e3-4be9-b34f-5f3155e7a3d6" target="_blank" data-smartkarma-citation="entities:26936:1" rel="noopener">Hyundai Motor (005385 KS)</a>. </li>
<li>On a longer timeframe (3-4 years), we believe this discount could narrow further to the 20-25% range, which provides additional opportunities for the Korean preferred shares to further make gains.</li>
</ul>


In this insight, we discuss numerous gap trades involving Korean preferred and common shares in 3Q 2024.
The recent push for Korea Value Up program has helped to push up prices of numerous Korean preferred stocks including Hyundai Motor (005385 KS). 
On a longer timeframe (3-4 years), we believe this discount could narrow further to the 20-25% range, which provides additional opportunities for the Korean preferred shares to further make gains.


Gap Trades in Korean Prefs Vs Common Share Pairs in 3Q 2024

<ul>
<li>Local stock market focuses on ISA tax benefits expansion; political push for higher tax-exempt limits seen as pivotal event.</li>
<li>Investors expect dividend stocks to outperform due to ISA tax advantages: tax exemptions within limits and lower 9.9% taxation on excess amounts, boosting ISA-based equity investments.</li>
<li>ETF influence declining; ISA tax benefits may boost dividend plays, heightening interest in preferred stocks tied to efforts to redeem them, impacting equity costs.</li>
</ul>


Local stock market focuses on ISA tax benefits expansion; political push for higher tax-exempt limits seen as pivotal event.
Investors expect dividend stocks to outperform due to ISA tax advantages: tax exemptions within limits and lower 9.9% taxation on excess amounts, boosting ISA-based equity investments.
ETF influence declining; ISA tax benefits may boost dividend plays, heightening interest in preferred stocks tied to efforts to redeem them, impacting equity costs.


Pref-Centred Dividend Plays with Expanded ISA Tax Benefits in Value-Up Context

India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Thematic (Sector/Industry)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ambuja-cements-ltd" target="_blank" data-smartkarma-citation="entities:14745:1" rel="noopener">Ambuja Cements (ACEM IN)</a> to Acquire Penna Cement for Rs. 10,422 Crore</li>
<li>
<a href="https://www.smartkarma.com/entities/puravankara-projects-ltd" target="_blank" data-smartkarma-citation="entities:15711:1" rel="noopener">Puravankara Projects (PURVA IN)</a> raising 1000 Cr via QIP and <a href="https://www.smartkarma.com/entities/vodafone-idea-ltd" target="_blank" data-smartkarma-citation="entities:15678:1" rel="noopener">Vodafone Idea (IDEA IN)</a> approved 2458 Cr Preferential allotment</li>
<li>Upcoming 53rd GST Council Meeting to Address Key Taxation Issues</li>
</ul>



Ambuja Cements (ACEM IN) to Acquire Penna Cement for Rs. 10,422 Crore

Puravankara Projects (PURVA IN) raising 1000 Cr via QIP and Vodafone Idea (IDEA IN) approved 2458 Cr Preferential allotment
Upcoming 53rd GST Council Meeting to Address Key Taxation Issues


#14 India Insight: Ambuja Acquiring Penna, Vodafone Idea & Purvankara Fundraise, L&T, GST

Korea Pref Shares
Insights on Korean Pref Shares

Local Market Observations on Timing Samsung Electronics 1P Discount Narrowing

Samsung Electronics and Hyundai Motor are expected to announce their value-up plans before the Korea Value-Up Index launches in mid-September....

Sanghyun Park

StubWorld's: Amorepacific's NAV Discount Plumbs New Multi-Year Low

The implied stub - and simple ratio - are currently at extreme levels. Setting up the stub here - long Group, short Corp - is the obvious trade;...

David Blennerhassett

Pref-Centred Dividend Plays with Expanded ISA Tax Benefits in Value-Up Context

This post explores the expansion of ISA tax benefits and its impact on dividend trades focused on preferred stocks within the value-up trading...

Sanghyun Park

#14 India Insight: Ambuja Acquiring Penna, Vodafone Idea & Purvankara Fundraise, L&T, GST

Ambuja Cements to acquire Penna Cement, Puravankara raising 1k Cr via QIP, VI approved 2458 Cr Preferential allotment, upcoming GST Council...

Sudarshan Bhandari

Local Market Observations on Timing Samsung Electronics 1P Discount Narrowing

Samsung Electronics and Hyundai Motor are expected to announce their value-up plans before the Korea Value-Up Index launches in mid-September....

Sanghyun Park

StubWorld's: Amorepacific's NAV Discount Plumbs New Multi-Year Low

The implied stub - and simple ratio - are currently at extreme levels. Setting up the stub here - long Group, short Corp - is the obvious trade;...

David Blennerhassett

Gap Trades in Korean Prefs Vs Common Share Pairs in 3Q 2024

We discuss numerous gap trades involving Korean preferred and common shares in 3Q24. The recent push for Korea Value Up program has helped to push...

Douglas Kim

Pref-Centred Dividend Plays with Expanded ISA Tax Benefits in Value-Up Context

This post explores the expansion of ISA tax benefits and its impact on dividend trades focused on preferred stocks within the value-up trading...

Sanghyun Park

#14 India Insight: Ambuja Acquiring Penna, Vodafone Idea & Purvankara Fundraise, L&T, GST

​Ambuja Cements to acquire Penna Cement, Puravankara raising 1k Cr via QIP, VI approved 2458 Cr Preferential allotment, upcoming GST Council...

Sudarshan Bhandari

Ambuja Cements to acquire Penna Cement, Puravankara raising 1k Cr via QIP, VI approved 2458 Cr Preferential allotment, upcoming GST Council...