Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 10 March, Young Poong (000670 KS) announced that it plans to cancel all of its treasury shares and conduct a 10-to-1 stock split.</li>
<li>Driven by the treasury shares cancellation and stock split, Young Poong's share price rose 8.9% to 489,000 won today (10 March 2025). </li>
<li>Our updated NAV of Young Poong suggests NAV per share of 834,064 per share, representing a 71% upside from current levels.</li>
</ul>


On 10 March, Young Poong (000670 KS) announced that it plans to cancel all of its treasury shares and conduct a 10-to-1 stock split.
Driven by the treasury shares cancellation and stock split, Young Poong's share price rose 8.9% to 489,000 won today (10 March 2025). 
Our updated NAV of Young Poong suggests NAV per share of 834,064 per share, representing a 71% upside from current levels.


Young Poong: Announces Cancellation of Entire Treasury Shares and 10:1 Stock Split

<ul>
<li>Must Asset Management, a 3% shareholder of Young Poong (000670 KS), started to go activist on the company on 5 February.</li>
<li>Based on current market cap, this would represent a P/B of 0.2x using the consolidated controlling interest equity of 3.9 trillion won!</li>
<li>There is some speculation that Must Asset Mgmt may form an alliance with Chairman Choi’s family as it proposed to Young Poong to recommend outside directors.</li>
</ul>


Must Asset Management, a 3% shareholder of Young Poong (000670 KS), started to go activist on the company on 5 February.
Based on current market cap, this would represent a P/B of 0.2x using the consolidated controlling interest equity of 3.9 trillion won!
There is some speculation that Must Asset Mgmt may form an alliance with Chairman Choi’s family as it proposed to Young Poong to recommend outside directors.


Must Asset Mgmt Goes Activist on Young Poong

Equity Bottom-Up

<ul>
<li>In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 4Q 2024.</li>
<li>Volatility has been high in the Korean stock market in the past several weeks resulting in some interesting widening of some gaps among numerous holdcos and opcos in Korea. </li>
<li>Of the 38 pair trades, 19 of them involved holdcos outperforming opcos in the past six months and the other 19 opcos outperforming holdcos in the same period. </li>
</ul>


In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 4Q 2024.
Volatility has been high in the Korean stock market in the past several weeks resulting in some interesting widening of some gaps among numerous holdcos and opcos in Korea. 
Of the 38 pair trades, 19 of them involved holdcos outperforming opcos in the past six months and the other 19 opcos outperforming holdcos in the same period. 


Korean Holdcos Vs Opcos Gap Trading Opportunities in 4Q 2024

<ul>
<li>We have significantly raised the NAV of Young Poong to 965,193 won (up 105% than previously). Our current NAV estimate of the company is 150% higher than current price.</li>
<li>Some traders have been positioning for Young Poong to be deleted from the KOSPI200 in the next round of rebalancing. Young Poong is not likely to be deleted from KOSPI200.</li>
<li>We also provide three potential scenarios of the Choi family's strategy to fight back to gain control of Korea Zinc.</li>
</ul>


We have significantly raised the NAV of Young Poong to 965,193 won (up 105% than previously). Our current NAV estimate of the company is 150% higher than current price.
Some traders have been positioning for Young Poong to be deleted from the KOSPI200 in the next round of rebalancing. Young Poong is not likely to be deleted from KOSPI200.
We also provide three potential scenarios of the Choi family's strategy to fight back to gain control of Korea Zinc.


NAV Analysis of Young Poong and Three Potential Scenarios of Choi Family's Strategy to Fight Back

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>An independent appraisal repot supports <a href="https://www.smartkarma.com/entities/rio-tinto-ltd" target="_blank" data-smartkarma-citation="entities:13:1" rel="noopener">Rio Tinto Ltd (RIO AU)</a> unifying its dual-listed structure. Shareholders will get their say on the 3rd April. </li>
<li>
<a href="https://www.smartkarma.com/entities/proto-corp" target="_blank" data-smartkarma-citation="entities:2511:1" rel="noopener">Proto Corp (4298 JP)</a>'s MBO is the wrong price. The solution here is a really bump or a broken deal if investors keep the share price above the TOB price.</li>
<li>
<a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>gives back some of the recent gains as pro-Beijing media said CK Hutch “should think twice about which side it wants to stand with”.</li>
</ul>


An independent appraisal repot supports Rio Tinto Ltd (RIO AU) unifying its dual-listed structure. Shareholders will get their say on the 3rd April. 

Proto Corp (4298 JP)'s MBO is the wrong price. The solution here is a really bump or a broken deal if investors keep the share price above the TOB price.

CK Hutchison Holdings (1 HK)gives back some of the recent gains as pro-Beijing media said CK Hutch “should think twice about which side it wants to stand with”.


Last Week in Event SPACE: Rio Tinto, Proto, CK Hutch, Silk Logistics, HKBN

South Korea

Young Poong Corporation produces and markets non-ferrous metals, such as zinc ingots, sulfate, and cadmium.  The Company also generates income from leasing buildings.

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

Young Poong (000670 KS)

Young Poong: Announces Cancellation of Entire Treasury Shares and 10:1 Stock Split

On 10 March, Young Poong (000670 KS) announced that it plans to cancel all of its treasury shares and conduct a 10-to-1 stock split.

Douglas Kim

Must Asset Mgmt Goes Activist on Young Poong

Must Asset Management, a 3% shareholder of Young Poong (000670 KS), started to go activist on the company on 5 February.

Douglas Kim

Korean Holdcos Vs Opcos Gap Trading Opportunities in 4Q 2024

In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in...

Douglas Kim

NAV Analysis of Young Poong and Three Potential Scenarios of Choi Family's Strategy to Fight Back

We have significantly raised the NAV of Young Poong to 965,193 won (up 105% than previously). Our current NAV estimate of the company is 150%...

Douglas Kim

Last Week in Event SPACE: Rio Tinto, Proto, CK Hutch, Silk Logistics, HKBN

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)