External broker reports(aggregated public sources), Daishin Securities

Daishin Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

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>Laneige and Innisfree continue to lead top-line growth in Western markets</li>
<li>Chinese entity in final stages of restructuring, raising expectations for a profit turnaround in 2H25</li>
<li>AmorePacific’s subsidiary COSRX growth expected to stabilize rather than to surge explosively</li>
</ul>
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


Laneige and Innisfree continue to lead top-line growth in Western markets
Chinese entity in final stages of restructuring, raising expectations for a profit turnaround in 2H25
AmorePacific’s subsidiary COSRX growth expected to stabilize rather than to surge explosively

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AmorePacific (090430 KS): Performance in China to Improve, Despite COSRX Slowing

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

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

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A double dose of StubWorld this week: both the implied stub for <a href="https://www.smartkarma.com/entities/amorepacific-group" target="_blank" data-smartkarma-citation="entities:12179:1" rel="noopener">Amorepacific Group (002790 KS)</a> and the simple ratio (Group/<a href="https://www.smartkarma.com/entities/amorepacific-corp" target="_blank" data-smartkarma-citation="entities:20854:1" rel="noopener">Amorepacific Corp (090430 KS)</a>) 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

Paradise Co., Ltd. is a gaming company that operates casino facilities in South Korea and Kenya.  The Company offers games, such as roulette, black jack, baccarat, and big wheel.  Paradise, through its subsidiaries, operates retail and hotel business.

<ul>
<li>On 2 July, Paradise Co Ltd (034230 KS) announced that it will construct a new high end luxury hotel in Seoul spending about 500 billion won to 550 billion won. </li>
<li>We believe that this construction of the new luxury hotel will have a negative impact on shares of Paradise. </li>
<li>Rather than investing a large sum of money to build a new hotel, many investors would rather have preferred Paradise to increase share buybacks and dividends. </li>
</ul>


On 2 July, Paradise Co Ltd (034230 KS) announced that it will construct a new high end luxury hotel in Seoul spending about 500 billion won to 550 billion won. 
We believe that this construction of the new luxury hotel will have a negative impact on shares of Paradise. 
Rather than investing a large sum of money to build a new hotel, many investors would rather have preferred Paradise to increase share buybacks and dividends. 


Paradise: Expansion into High End Hotel Likely to Destroy Shareholder Value

<ul>
<li>In this insight, we discuss numerous gap trades involving Korean preferred and common shares in 2Q 2024.</li>
<li>Although the discount on the preferred shares versus the common shares has been gradually narrowing in the past decade, this discount increased from end of 2021 to 1 April 2024.</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 2Q 2024.
Although the discount on the preferred shares versus the common shares has been gradually narrowing in the past decade, this discount increased from end of 2021 to 1 April 2024.
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 2Q 2024

Beneficiaries of Tourism Revival in South Korea

South Korea Tours Resumption
Beneficiaries of Tourism Revival in South Korea

AmorePacific (090430 KS): Performance in China to Improve, Despite COSRX Slowing

Laneige and Innisfree continue to lead top-line growth in Western markets. Chinese entity in final stages of restructuring, raising expectations...

Daishin Securities

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

Paradise: Expansion into High End Hotel Likely to Destroy Shareholder Value

Paradise announced that it will construct a new high end luxury hotel in Seoul spending about 500 billion won. The construction of this hotel is...

Douglas Kim

AmorePacific (090430 KS): Performance in China to Improve, Despite COSRX Slowing

Laneige and Innisfree continue to lead top-line growth in Western markets. Chinese entity in final stages of restructuring, raising expectations...

Daishin Securities

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

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

Paradise: Expansion into High End Hotel Likely to Destroy Shareholder Value

Paradise announced that it will construct a new high end luxury hotel in Seoul spending about 500 billion won. The construction of this hotel is...

Douglas Kim

Gap Trades in Korean Prefs Vs Common Share Pairs in 2Q 2024

We discuss numerous gap trades involving Korean preferred and common shares in 2Q 2024. The Korea Value Up program in Korea has helped to push up...

Douglas Kim