Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<ul>
<li>On 6 March, the Financial Services Commission (FSC) and the Korea Exchange (KRX) jointly announced revisions and guidelines to spin-offs and double listings in Korea.</li>
<li>The new guidelines of the FSC and KRX regarding the spin-offs/double listings is positive and a step in the right direction to improve the corporate governance of companies in Korea.</li>
<li>On the other hand, one of the consequences of these changes could be that the parent companies may take more time to complete IPOs of their promising affiliates.</li>
</ul>


On 6 March, the Financial Services Commission (FSC) and the Korea Exchange (KRX) jointly announced revisions and guidelines to spin-offs and double listings in Korea.
The new guidelines of the FSC and KRX regarding the spin-offs/double listings is positive and a step in the right direction to improve the corporate governance of companies in Korea.
On the other hand, one of the consequences of these changes could be that the parent companies may take more time to complete IPOs of their promising affiliates.


FSC and KRX Jointly Announce Revisions to Spinoffs and Double Listings in Korea

Event-Driven

<ul>
<li>On 15 February, KT Corp (030200 KS) announced that it will spin off the cloud and IDC business. </li>
<li>KT will spin off the cloud and internet data center (IDC) business to set up subsidiary tentatively named KT Cloud starting 1 April.</li>
<li>KT's valuations remain attractive and the spin-off of KT Cloud Business is also likely to aid on the continued outperformance of KT shares in the coming months. </li>
</ul>


On 15 February, KT Corp (030200 KS) announced that it will spin off the cloud and IDC business. 
KT will spin off the cloud and internet data center (IDC) business to set up subsidiary tentatively named KT Cloud starting 1 April.
KT's valuations remain attractive and the spin-off of KT Cloud Business is also likely to aid on the continued outperformance of KT shares in the coming months. 


KT Corp: Announces a Spin-Off of the Cloud and IDC Business

Quantitative Analysis

<ul>
<li>In this insight, we discuss 19 value oriented stocks in KOSPI200 that have been big outperformers YTD but whose share prices have risen less than 100% from 3/20/2020 to 1/25/2022.</li>
<li>Among the 19 stocks in this list, 32% are financials (6 companies) and 16% are F&amp;B (3 companies).</li>
<li>These 19 value-oriented stocks could continue to outperform the market in the next few weeks due to rising inflation, geopolitical uncertainties, and uncertainties regarding how the COVID-19 narrative will end.</li>
</ul>


In this insight, we discuss 19 value oriented stocks in KOSPI200 that have been big outperformers YTD but whose share prices have risen less than 100% from 3/20/2020 to 1/25/2022.
Among the 19 stocks in this list, 32% are financials (6 companies) and 16% are F&amp;B (3 companies).
These 19 value-oriented stocks could continue to outperform the market in the next few weeks due to rising inflation, geopolitical uncertainties, and uncertainties regarding how the COVID-19 narrative will end.


Outperforming Value Stocks With Contrarian Qualities in KOSPI200

Equity Bottom-Up

<ul>
<li>KT Corp (030200 KS) is expected to have a solid, near 6% dividend yield in 2022.</li>
<li>KT's partnership with Shinhan Bank is a strategy to accelerate KT's transformation in the digital business.</li>
<li>KT is currently trading at 0.5x P/B, which is at a steep discount to its liquidation value.</li>
</ul>


KT Corp (030200 KS) is expected to have a solid, near 6% dividend yield in 2022.
KT's partnership with Shinhan Bank is a strategy to accelerate KT's transformation in the digital business.
KT is currently trading at 0.5x P/B, which is at a steep discount to its liquidation value.


KT Corp: Near 6% Dividend Yield, Stock Swap with Shinhan Bank, IPO of K-Bank, & Shift to Value

Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>The companies that are best positioned to take advantage of the 5G growth are a mix of equipment vendors, chipset companies, device makers, and enterprise solution providers. </li>
<li>The top ten companies to benefit from 5G rollout based on innovation and citation count are <strong>Samsung Electronics, Qualcomm, LG Electronics, AT&amp;T, Huawei, Intel, Google, Ericsson, Apple,</strong> and <strong>Nokia </strong>
</li>
<li>A stand-out in 5G technology rankings is <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a> which is punching well above its current market share in the industry. </li>
</ul>


The companies that are best positioned to take advantage of the 5G growth are a mix of equipment vendors, chipset companies, device makers, and enterprise solution providers. 
The top ten companies to benefit from 5G rollout based on innovation and citation count are Samsung Electronics, Qualcomm, LG Electronics, AT&amp;T, Huawei, Intel, Google, Ericsson, Apple, and Nokia 

A stand-out in 5G technology rankings is LG Electronics (066570 KS) which is punching well above its current market share in the industry. 


Stock Ideas from Data Mining Technical Publications: A Look at 5G

South Korea

LG Uplus Corp., an affiliate of LG Group, provides a wide range of personal communications services (PCS) using code division multiple access (CDMA) technology.  The Company offers call forwarding, call and data transfer, call waiting, voice mail, Internet-phone, prepaid call, and authentication text-to-speech (TTS) services.

KINX INC is the Internet linkage and line adapter service providing firm.  The Company provides IX and Internet Data Center service to the network service providers to reduce the traffic and to contruct Internet infrastructure.  KINX also provides VoIP service.

Sejong Telecom, Inc. develops and provides various telecom service.  The Company's main service include international phone call, Internet phone call, and long distance call.

SK Telecom Co., Ltd. is a Korean mobile and telecommunications operator. The Company provides cellular voice, wireless data, and wireless internet services. SK Telecom also offers fixed line services and platform services.

ECS Telecom Co.,Ltd. is a provider of communication products and services.  The company offers private branch exchange (PBX), IP telephony, contact center solution, and trading system.

HYBE Co., Ltd. operates as an entertainment company. The Company provides music production, album distribution, entertainers management, publicity, planning, training, and other services. HYBE also makes television shows.

Netmarble Corporation develops and publishes mobile games. The Company develops and publishes casual games, action, sports games, strategy, simulation games, and social casino games. Netmarble offers services worldwide.

Pearl Abyss Corp. operates as a computer games making company. The Company offers games development, games exporting, and other services. Pearl Abyss serves customers worldwide.

KRTnet Corporation provides radio relay services for mobile phone companies by building and maintaining relay station.  The Company also manufactures telecommunication equipment used for radio relay station.

Kakao Games Corp. operates as a multiply platform gaming company. The Company provides mobile games, computer games, virtual reality games, and other related products. Kakao Games markets its products worldwide.

Telekom Malaysia Berhad establishes, provides, and maintains telecommunication and related services. Through its subsidiaries, the Company provides payphone network, mobile telecommunication, public telephone, and leasing of optical fiber telecommunication system services. Telekom also manages and operates Kuala Lumpur Tower and provides intelligent security services.

Tata Communications Limited provides telecommunications services. The Company provides international telephone, telex and telegraphy services, international maritime mobile communications, INTELSAT business service and bureau fax and t-fax services. Tata Communications also provides internet access, electronic mail and electronic data interchange services.

Telecom Italia S.p.A., through subsidiaries, offers fixed line and mobile telephone and data transmission services in Italy and abroad.  The Company offers local and long-distance telephone, satellite communications, Internet access, and teleconferencing services.

Telefonica Deutschland Holding AG provides telecommunications services in Germany. The Company offers fixed-line and mobile telephone, Internet, and data transmission services to residential and corporate customers.

Telekom Austria AG offers telecommunications services.  The Company offers fixed -line and mobile telephone, Internet access, and data transmission services. Telekom Austria also offers Internet access and mobile services in Liechtenstein , Slovenia, Bulgaria, Belarus and Croatia.

Hellenic Telecommunications Organization S.A. (OTE S.A.) provides telecommunications services. The Company offers fixed-line television and mobile telecommunication services including voice, broadband, data and leased lines. OTE S.A. serves the audio-visual, communications, industrial, and residential industries as well as public customers.

Turk Telekomunikasyon A.S. is an integrated telecommunications services provider for businesses and individuals. The Company offers land and mobile telecommunications solutions, as well as Internet services.

True Corporation PCL is an integrated telecommunications provider. The Company offers a wide range of voice, video, and data services, including dial-up and broadband Internet services, pay television, fixed-line phone, online games, and mobile phone services.

HKT Trust and HKT Ltd trade together as a stapled security.  HKT Ltd provides telecommunications services.  The Company's business provides telecommunications products and services including local telephony services, local data and broadband services, international telecommunications services, and other services.

Spark New Zealand Limited (formerly Telecom Corporation of New Zealand Limited) provides digital communications, entertainment and IT services over its networks and the Cloud to New Zealanders and businesses. The Company's strategy is focused on mobility, data and effortless service, and cost.

KT Corporation provides telecommunication services including local, long distance, and international calling, satellite communication, data transmission, and wireless telephone services in South Korea.  The Company also offers network portal and high-speed Internet access services using asymmetric digital subscriber lines (ADSLs).

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

KT Corp (030200 KS)

FSC and KRX Jointly Announce Revisions to Spinoffs and Double Listings in Korea

The new guidelines of the FSC and KRX regarding the spin-offs/double listings is positive and a step in the right direction to improve the...

Douglas Kim

KT Corp: Announces a Spin-Off of the Cloud and IDC Business

KT announced that it will spin off the cloud and IDC business which is likely to aid on the continued outperformance of KT shares in the coming...

Douglas Kim

Outperforming Value Stocks With Contrarian Qualities in KOSPI200

In this insight, we discuss 19 value oriented stocks in KOSPI200 that have been big outperformers YTD but whose share prices have risen less than...

Douglas Kim

KT Corp: Near 6% Dividend Yield, Stock Swap with Shinhan Bank, IPO of K-Bank, & Shift to Value

We discuss major catalysts/investment highlights of KT including near 6% dividend yield, recent stock swap with Shinhan Bank, shift to value,...

Douglas Kim

Stock Ideas from Data Mining Technical Publications: A Look at 5G

5G connectivity is expected to spawn new business and services across sectors. We review the technological positioning of companies competing in...

Pyari Menon

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)