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>Samsung Life isn't getting a boost from Samsung Fire, so they need to stay focused on managing equity to maintain their K-ICS ratio.</li>
<li>They’ll use capital securities issuance as a quick fix but must also monitor their Samsung Electronics stake, a major asset, to manage the situation effectively.</li>
<li>Samsung Electronics will likely focus on dividends over buybacks. Watch for a pair trade setup between common and preferred shares, favoring long positions on preferreds.</li>
</ul>


Samsung Life isn't getting a boost from Samsung Fire, so they need to stay focused on managing equity to maintain their K-ICS ratio.
They’ll use capital securities issuance as a quick fix but must also monitor their Samsung Electronics stake, a major asset, to manage the situation effectively.
Samsung Electronics will likely focus on dividends over buybacks. Watch for a pair trade setup between common and preferred shares, favoring long positions on preferreds.


Clarifying Samsung Life’s Position on How Samsung Electronics Structures Its Shareholder Returns

<ul>
<li>Starting this year, both year-end and interim divvies follow the new rule, with ex-div dates set after the payout is confirmed.</li>
<li>Quarterly dividend arbitrage will heat up, especially for high-yield bank stocks, attracting traders to cash in on the spread.</li>
<li>Samsung Electronics is likely to update bylaws at the March AGM, with Q1 payout ex-div dates set after the dividend is confirmed.</li>
</ul>


Starting this year, both year-end and interim divvies follow the new rule, with ex-div dates set after the payout is confirmed.
Quarterly dividend arbitrage will heat up, especially for high-yield bank stocks, attracting traders to cash in on the spread.
Samsung Electronics is likely to update bylaws at the March AGM, with Q1 payout ex-div dates set after the dividend is confirmed.


FSS Officially Rolls Out New Ex-Div Rule for Quarterly Divs; Sammy May Finally Join the Change

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

Samsung E&A Co.,Ltd provides engineering construction and project management services in the domestic and international markets. The Company constructs refinery plants, petrochemical plants, gas plants, hydrocarbon upstream, power plants, metallurgy plant, industrial plants, and water treatment facilities. Samsung E&A conducts businesses across worldwide.

<ul>
<li>In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 17 February.</li>
<li>The top 10 stock picks (bi-weekly) include Hyundai G.F. Holding, Binggrae, Cheil Worldwide, Hana Tour, Samsung Electronics (pref), Samsung E&amp;A, Hyundai Elevator, KT Corp, Orion Corp, and Samsung Life Insurance. </li>
<li>We started to incorporate top negative catalysts along with positive catalysts in our top stock picks bi-weekly. Top negative catalyst is tariffs. We tried to exclude companies exposed to tariffs.</li>
</ul>


In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 17 February.
The top 10 stock picks (bi-weekly) include Hyundai G.F. Holding, Binggrae, Cheil Worldwide, Hana Tour, Samsung Electronics (pref), Samsung E&amp;A, Hyundai Elevator, KT Corp, Orion Corp, and Samsung Life Insurance. 
We started to incorporate top negative catalysts along with positive catalysts in our top stock picks bi-weekly. Top negative catalyst is tariffs. We tried to exclude companies exposed to tariffs.


Top 10 Korean Stock Picks Bi-Weekly (17 February 2025)

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

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>As of FY19 PEB was only 2-4% of overall construction, and is projected to reach 5-7% by FY28. Low current share in overall construction indicates high growth potential in India.</li>
<li>The PEB Sector is rapidly becoming a key pillar of modern infrastructure. Driven by industrialization and urbanization, its adoption is accelerating, especially in the industrial and commercial sectors.</li>
<li>The Rapid Growth of the PEB Industry in India is driven by industrial demand, infrastructure expansion, and rising adoption in warehouses, data centers, logistics, and commercial buildings.</li>
</ul>


As of FY19 PEB was only 2-4% of overall construction, and is projected to reach 5-7% by FY28. Low current share in overall construction indicates high growth potential in India.
The PEB Sector is rapidly becoming a key pillar of modern infrastructure. Driven by industrialization and urbanization, its adoption is accelerating, especially in the industrial and commercial sectors.
The Rapid Growth of the PEB Industry in India is driven by industrial demand, infrastructure expansion, and rising adoption in warehouses, data centers, logistics, and commercial buildings.


Themes of India : How Pre-Engineered Buildings(PEB) Are Transforming India's Construction Landscape?

Amorepacific Corp (Preferred) / Equity Bottom-Up

Amorepacific Corp. 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.

Amorepacific Corp (Preferred) (090435 KS)

<ul>
<li>In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 1Q 2025.</li>
<li>Among the 27 major pair trades (prefs vs. common shares), 20 of the pref stocks outperformed their common shares counterparts in 2024.</li>
<li>The 27 Korean preferred stocks' average prices declined by 1% from end of 2023 to end of 2024 (excluding dividends), outperforming their common counterparts which were down on average 3.7%.</li>
</ul>


In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 1Q 2025.
Among the 27 major pair trades (prefs vs. common shares), 20 of the pref stocks outperformed their common shares counterparts in 2024.
The 27 Korean preferred stocks' average prices declined by 1% from end of 2023 to end of 2024 (excluding dividends), outperforming their common counterparts which were down on average 3.7%.


Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 1Q 2025

Korea Pref Shares
Insights on Korean Pref Shares

Clarifying Samsung Life’s Position on How Samsung Electronics Structures Its Shareholder Returns

This post clarifies Samsung Life’s position on how Samsung Electronics structures its shareholder returns in the upcoming value-up disclosure.

Sanghyun Park

FSS Officially Rolls Out New Ex-Div Rule for Quarterly Divs; Sammy May Finally Join the Change

Korea FSS is officially rolling out the new ex-div date rule for quarterly divs, and Samsung Electronics is likely to hop on the bandwagon to...

Sanghyun Park

Top 10 Korean Stock Picks Bi-Weekly (17 February 2025)

The top 10 stock picks (bi-weekly) include Hyundai G.F. Holding, Binggrae, Cheil Worldwide, Hana Tour, Samsung Electronics (pref), Samsung E&A,...

Douglas Kim

Themes of India : How Pre-Engineered Buildings(PEB) Are Transforming India's Construction Landscape?

The Prefabricated Building (PEB) sector in India is rapidly growing, projected to reach 5-7% of overall construction by FY28, driven by...

Nimish Maheshwari

Clarifying Samsung Life’s Position on How Samsung Electronics Structures Its Shareholder Returns

This post clarifies Samsung Life’s position on how Samsung Electronics structures its shareholder returns in the upcoming value-up disclosure.

Sanghyun Park

FSS Officially Rolls Out New Ex-Div Rule for Quarterly Divs; Sammy May Finally Join the Change

Korea FSS is officially rolling out the new ex-div date rule for quarterly divs, and Samsung Electronics is likely to hop on the bandwagon to...

Sanghyun Park

Top 10 Korean Stock Picks Bi-Weekly (17 February 2025)

The top 10 stock picks (bi-weekly) include Hyundai G.F. Holding, Binggrae, Cheil Worldwide, Hana Tour, Samsung Electronics (pref), Samsung E&A,...

Douglas Kim

Themes of India : How Pre-Engineered Buildings(PEB) Are Transforming India's Construction Landscape?

​The Prefabricated Building (PEB) sector in India is rapidly growing, projected to reach 5-7% of overall construction by FY28, driven by...

Nimish Maheshwari

Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 1Q 2025

We discuss numerous gap trade opportunities involving Korean preferred and common shares in 1Q 2025. The Korean preferred stocks on average...

Douglas Kim

The Prefabricated Building (PEB) sector in India is rapidly growing, projected to reach 5-7% of overall construction by FY28, driven by...