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

Korea Zinc Co., Ltd. specializes in non-ferrous metal smelting industry.  The Company manufactures zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper.  Korea Zinc provides its products to domestic and overseas markets.

<ul>
<li>The market is watching closely for when Hyundai Motor might sell its 5% stake in Korea Zinc, with the lockup ending on October 7th.</li>
<li>Hyundai might mediate to end the lawsuit and lift the injunction, potentially agreeing to sell the stake to a third party or on the market.</li>
<li>The uncertainty around Hyundai’s Korea Zinc stake sale makes trading challenging, but its actions in Q4 could significantly affect Korea Zinc’s stock price and create trading opportunities.</li>
</ul>


The market is watching closely for when Hyundai Motor might sell its 5% stake in Korea Zinc, with the lockup ending on October 7th.
Hyundai might mediate to end the lawsuit and lift the injunction, potentially agreeing to sell the stake to a third party or on the market.
The uncertainty around Hyundai’s Korea Zinc stake sale makes trading challenging, but its actions in Q4 could significantly affect Korea Zinc’s stock price and create trading opportunities.


Trading Situation for Hyundai Motor's 5% Stake in Korea Zinc, Set to Be Unlocked in October

External broker reports(aggregated public sources), Prabhudas Lilladhar

Prabhudas Lilladhar

External broker reports(aggregated public sources)

Prabhudas Lilladher is one of India's leading research based financial services organisation.

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Jindal Stainless Ltd. is an integrated steel producer which manufactures a variety of steel products.  The Company's products include stainless steel plates, welded steel tubes, cold rolled strips and seamless tubes. Jindal also manufactures industrial machinery.

<ul><li>Prabhudas Lilladher's research report onJindal Stainless We met the mgmt. of Jindal Stainless (JDSL) to get an update on current demand environment and future growth initiatives.</li><li>Domestic stainless steel (SS) demand remains strong and the mgmt. expects it to improve further from H2FY25 aided by the government’s continued focus on infrastructure including expenditure on transport sector such as railways, metros and station modernization.</li><li>Export demand remains muted, but is expected to improve as a result of the current destocking in developed economies, likely improvement in the US economy post elections, and the mgmt. exploring newer export markets. </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.

Prabhudas Lilladher's research report onJindal Stainless We met the mgmt. of Jindal Stainless (JDSL) to get an update on current demand environment and future growth initiatives.Domestic stainless steel (SS) demand remains strong and the mgmt. expects it to improve further from H2FY25 aided by the government’s continued focus on infrastructure including expenditure on transport sector such as railways, metros and station modernization.Export demand remains muted, but is expected to improve as a result of the current destocking in developed economies, likely improvement in the US economy post elections, and the mgmt. exploring newer export markets. 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.

Jindal Stainless - On a Right Track to Spur Growth

External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Thematic (Sector/Industry)

<ul><li>Tin price strengthened to US$32k/t in Aug24, as inventory (SHFE and LME) and Indonesian exports fell -23% mom.</li><li>Nickel ore supply remained tight, which boosted the NPI price in Aug24. However, the LME price fell on weaker fundamentals.</li><li>We reiterate our Overweight rating on the sector, with TINS and NCKL as our top picks due to stronger earnings visibility.</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.

Tin price strengthened to US$32k/t in Aug24, as inventory (SHFE and LME) and Indonesian exports fell -23% mom.Nickel ore supply remained tight, which boosted the NPI price in Aug24. However, the LME price fell on weaker fundamentals.We reiterate our Overweight rating on the sector, with TINS and NCKL as our top picks due to stronger earnings visibility.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.

Metal Mining: Aug24 Metal Sector Update: Supports for Tin Price

External broker reports(aggregated public sources), Euroz Limited

Euroz Hartleys

Euroz Limited

A Western Australian diversified financial services company focused on providing financial services solutions to Institutional, Corporate & Private Clients. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

MLG Oz Limited provides construction materials. The Company offers crushed stones, cement, lime, construction sand, gravel, and other construction materials. MLG Oz serves customers in Australia.

<ul><li>As expected, 2H EBITDA margins were softer (10.9% vs 12.8% 1H'24), the result of new project mobilisations in Q3 and heavier than anticipated rainfalls in March and June.</li><li>Operating cash flow of $57.6m correlated strongly with EBITDA, enabling MLG to deploy $49.6m of capex, including growth capex of $29.8m; sustaining capex was consistent with FY23.</li><li>Net debt (excl leases) was ~flat at $54.7m, improving the gearing ratio to ~1x</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.

As expected, 2H EBITDA margins were softer (10.9% vs 12.8% 1H'24), the result of new project mobilisations in Q3 and heavier than anticipated rainfalls in March and June.Operating cash flow of $57.6m correlated strongly with EBITDA, enabling MLG to deploy $49.6m of capex, including growth capex of $29.8m; sustaining capex was consistent with FY23.Net debt (excl leases) was ~flat at $54.7m, improving the gearing ratio to ~1xContent 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.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Packaging Corporation of America / Equity Bottom-Up

Packaging Corporation of America manufactures containerboard and corrugated packaging products for use in protecting goods during shipment.  The Company also produces multi-color boxes and displays, as well as meat boxes and wax-coated boxes for the agricultural industry.

Packaging Corporation of America (PKG US)

<ul><li>Packaging Corporation of America (PCA) reported second-quarter 2024 financial results with both strengths and challenges.</li><li>The company announced a net income of $199 million, resulting in $2.21 earnings per share (EPS).</li><li>Excluding special items, the EPS stood at $2.20, showing a slight decrease compared to the same quarter of the previous year at $2.31.</li></ul>

Packaging Corporation of America (PCA) reported second-quarter 2024 financial results with both strengths and challenges.The company announced a net income of $199 million, resulting in $2.21 earnings per share (EPS).Excluding special items, the EPS stood at $2.20, showing a slight decrease compared to the same quarter of the previous year at $2.31.

Packaging Corporation of America: These Are The 5 Most Pivotal Factors Driving Its Performance In 2024 & Beyond! - Financial Forecasts