Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

Lotte Global Logistics / Equity Capital Markets

Lotte Logistics is a logistics and shipping company headquartered in Seoul, Korea, established in 1988. It is a subsidiary of Lotte Corporation.

<ul>
<li>Lotte Global Logistics is getting ready to complete its IPO in KOSPI in May 2025. IPO price range is from 11,500 won and 13,500 won.</li>
<li>At the high end of the IPO price range, the expected public offering amount is 202 billion won.</li>
<li>According to the bankers' valuation, the expected market cap after the IPO is 479 billion won to 562 billion won. </li>
</ul>


Lotte Global Logistics is getting ready to complete its IPO in KOSPI in May 2025. IPO price range is from 11,500 won and 13,500 won.
At the high end of the IPO price range, the expected public offering amount is 202 billion won.
According to the bankers' valuation, the expected market cap after the IPO is 479 billion won to 562 billion won. 


Event-Driven

Posco Future M Co., Ltd. manufactures and distributes energy materials. The Company produces battery materials, advanced chemical materials, basic industrial materials, and other related products. Posco Future M also produces lime chemical and refractory products.

<ul>
<li>Short selling balance in the Korean stock market was 62.4 trillion won as of 21 March 2025, up significantly from 47.2 trillion won three months ago.</li>
<li>Among the stocks in KOSPI with high short selling balance and high lending balance ratios include Posco Future M, Yuhan Corp, LG Energy Solution, and Hanwha Aerospace. </li>
<li>Among the stocks in KOSDAQ with high short selling balance and high lending balance ratios include Ecopro BM, Ecopro Co, HLB, and Eo Technics. </li>
</ul>


Short selling balance in the Korean stock market was 62.4 trillion won as of 21 March 2025, up significantly from 47.2 trillion won three months ago.
Among the stocks in KOSPI with high short selling balance and high lending balance ratios include Posco Future M, Yuhan Corp, LG Energy Solution, and Hanwha Aerospace. 
Among the stocks in KOSDAQ with high short selling balance and high lending balance ratios include Ecopro BM, Ecopro Co, HLB, and Eo Technics. 


Short Selling Resuming on 31 March in Korea - Stocks With Highest Short Selling Lending Balance

Kum Yang Co., Ltd. specializes in manufacturing blowing agents to foam rubber products and polymers.  The Company also produces other basic fine chemicals, such as sulphur products.

<ul>
<li>Murphy's law is at progress for Kum Yang (001570 KS).</li>
<li>On 21 March, Kum Yang's external auditor gave a disclaimer of opinion on the on its audit report.</li>
<li>Korea Exchange is becoming more serious about delisting shady companies, especially one that receives inappropriate audit opinions for two consecutive years.</li>
</ul>


Murphy's law is at progress for Kum Yang (001570 KS).
On 21 March, Kum Yang's external auditor gave a disclaimer of opinion on the on its audit report.
Korea Exchange is becoming more serious about delisting shady companies, especially one that receives inappropriate audit opinions for two consecutive years.


Kum Yang: A Potential Delisting? [Murphy's Law in Progress]

Cross Asset Strategy

<ul>
<li>We discuss an emerging concern in the global financial markets which is that many high-profile PE owned companies around the world are increasingly experiencing bankruptcies or near bankruptcies.</li>
<li>The excessive leverage that MBK has tried to use on Homeplus has backfired due to higher interest rates, greater competition from Emart/Coupang, COVID-19, and lower buying power from asset sales.</li>
<li>Although it may be premature to declare these bankruptcies/near-bankruptcies to be a prelude to the next Big Short 2, they indeed raise so many alarming bells.</li>
</ul>


We discuss an emerging concern in the global financial markets which is that many high-profile PE owned companies around the world are increasingly experiencing bankruptcies or near bankruptcies.
The excessive leverage that MBK has tried to use on Homeplus has backfired due to higher interest rates, greater competition from Emart/Coupang, COVID-19, and lower buying power from asset sales.
Although it may be premature to declare these bankruptcies/near-bankruptcies to be a prelude to the next Big Short 2, they indeed raise so many alarming bells.


Collapse of Homeplus & More Bankruptcies of PE Owned Companies Globally [A Prelude to Big Short II?]

Hanwha Aerospace / Equity Capital Markets

Hanwha Aerospace Co., Ltd. operates as an aircraft parts manufacturing company. The Company produces and sells aircraft gas turbine engine products, aircraft compressors, low pressure turbines, and other products. Hanwha Aerospace markets its products worldwide.

<ul>
<li>Hanwha Aerospace (012450 KS) announced a rights offering capital raise of 3.6 trillion won (US$2.5 billion), which is the largest ever rights offering capital raise in Korea.</li>
<li>We believe this capital raise is likely to result in higher concerns about shares dilution at Hanwha Aerospace and negatively impact its share price.</li>
<li>It is also likely to have a significant negative impact on the entire Korean defense stocks, as it signals a top on this sector. </li>
</ul>


Hanwha Aerospace (012450 KS) announced a rights offering capital raise of 3.6 trillion won (US$2.5 billion), which is the largest ever rights offering capital raise in Korea.
We believe this capital raise is likely to result in higher concerns about shares dilution at Hanwha Aerospace and negatively impact its share price.
It is also likely to have a significant negative impact on the entire Korean defense stocks, as it signals a top on this sector. 


Hanwha Aerospace: Rights Offering of 3.6 Trillion Won (Negative on Entire Korean Defense Sector)

Douglas Research Advisory
Korea/Asia, Events, IPOs

Lotte Global Logistics IPO Preview

Lotte Global Logistics is getting ready to complete its IPO in KOSPI in May 2025. According to the bankers' valuation, the expected market cap...

Douglas Kim

Short Selling Resuming on 31 March in Korea - Stocks With Highest Short Selling Lending Balance

Among the stocks in KOSPI with high short selling balance and high lending balance ratios include Posco Future M, Yuhan Corp, LG Energy Solution,...

Douglas Kim

Kum Yang: A Potential Delisting? [Murphy's Law in Progress]

On 21 March, Kum Yang's external auditor gave a disclaimer of opinion on the on its audit report. There is a serious probability of Kum Yang...

Douglas Kim

Collapse of Homeplus & More Bankruptcies of PE Owned Companies Globally [A Prelude to Big Short II?]

The excessive leverage that MBK has tried to use on Homeplus has backfired due to higher interest rates, greater competition from Emart/Coupang,...

Douglas Kim

Hanwha Aerospace: Rights Offering of 3.6 Trillion Won (Negative on Entire Korean Defense Sector)

Hanwha Aerospace announced a rights offering capital raise of 3.6 trillion won. We believe this capital raise is likely to result in higher...

Douglas Kim