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

<p>Korea's local sector ETFs do not usually attract the spotlight as most of them are pretty insignificant in AUM. But a few sector index-mirroring ETFs are quite different. They are as hot as the flagship KOSPI 200-tracking ETFs.</p><p>The secondary battery sector ETFs are these exceptions. The extreme popularity of the secondary battery sector-ETFs bodes well for the level of investor interest sitting on the sector itself.</p><h2>How hot are they really?</h2><div>
<p>For instance, let's look at the KRX K-New Deal Index.</p>
<p>It has one mother index named the KRX BBIG K-New Deal Index, under which there are four sub-indices. BBIG stands for Battery, Bio, Internet, and Game, representing the four sectors that the New Deal initiative features.</p>
<div>
<p>The main index contains 12 large-cap stocks, three of which are from each of the four sectors. We then have four sub-indices, one for each sector. Each sub-index has 10 constituents, selected mainly based on the full market capitalization.</p>
<p>The mother index has three ETFs, and each of the four sub-indices has one ETF. The mother index's combined AUM stands at ₩529.2B at the last close. But the sub-index for the secondary battery has a total of ₩812.8B in AUM, substantially more than the mother index and simply incomparable to the other three sub-indices.</p>
</div>
</div><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"K-New Deal tracking ETFs"}'>K-New Deal tracking ETFs</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"Index"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Index</td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"Ticker"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Ticker</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":2,"2":"Market cap"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Market cap</td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX BBIG K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX BBIG K-New Deal ETF</td>
<td colspan="1" rowspan="4" style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX BBIG K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><div><strong>KRX BBIG K-New Deal Index</strong></div></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364960"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364960"'>364960</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":497.352}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩497.4B</td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3</td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"700003"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="700003"'>700003</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":9.63}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩9.6B</td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"TIMEFOLIO TIMEFOLIO BBIG Active ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>TIMEFOLIO TIMEFOLIO BBIG Active ETF</td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"385710"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="385710"'>385710</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":22.231}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩22.2B</td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":" - Total"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>- Total</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":1}'><strong>-</strong></td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":529.213}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])"><strong>₩529.2B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae TIGER KRX Secondary Battery K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae TIGER KRX Secondary Battery K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Secondary Battery K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Secondary Battery K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364980"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364980"'>364980</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":812.80425}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩812.8B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX BIO K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX BIO K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Bio K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Bio K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364970"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364970"'>364970</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":85.51125}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩85.5B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset KRX TIGER Internet K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset KRX TIGER Internet K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Internet K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Internet K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"365000"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="365000"'>365000</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":45.1605}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩45.2B</strong></td>
</tr>
<tr>
<td style="width: 317.216px;" data-sheets-value='{"1":2,"2":"Mirae Asset KRX TIGER Game K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset KRX TIGER Game K-New Deal ETF</td>
<td style="width: 189.531px;" data-sheets-value='{"1":2,"2":"KRX Game K-New Deal Index"}' data-sheets-numberformat='{"1":1}'><strong>KRX Game K-New Deal Index</strong></td>
<td style="text-align: right; width: 78.2955px;" data-sheets-value='{"1":2,"2":"364990"}' data-sheets-numberformat='{"1":1}' data-sheets-formula='="364990"'>364990</td>
<td style="text-align: right; width: 77.983px;" data-sheets-value='{"1":3,"3":36.208}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩36.2B</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" style="width: 726.008px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><h2>How substantial is the flow impact?</h2><p>We have three major secondary battery ETFs, with a combined AUM of close to ₩3T.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Samsung KODEX Secondary Battery Industry ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Samsung KODEX Secondary Battery Industry ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER Secondary Cell ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Mirae Asset TIGER Secondary Cell ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae TIGER KRX Secondary Battery K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Mirae TIGER KRX Secondary Battery K-New Deal ETF</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Market cap"}'><strong>Market cap</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1233.609}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000"><strong>₩1,233.6B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":873.704}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000"><strong>₩873.7B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":812.80425}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000"><strong>₩812.8B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Underlying index"}'>Underlying index</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"FnGuide Secondary Battery Industry Index"}'>FnGuide Secondary Battery Industry Index</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"WISE Secondary Battery Theme Index"}'>WISE Secondary Battery Theme Index</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KRX Secondary Battery K-New Deal Index"}'><div><div>KRX Secondary Battery K-New Deal Index</div></div></td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide Index"}'>Source: KRX &amp; FnGuide Index</td></tr>
</tbody>
</table><div>
<p>These are 4 major constituents making all three indices.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"4 major constituents making all the three indices"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>4 major constituents making all three indices</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Samsung KODEX Secondary Battery Industry ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Samsung KODEX Secondary Battery Industry ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae Asset TIGER Secondary Cell ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Mirae Asset TIGER Secondary Cell ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Mirae TIGER KRX Secondary Battery K-New Deal ETF"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Mirae TIGER KRX Secondary Battery K-New Deal ETF</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Innovation Co Ltd"}'>SK Innovation Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1713}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]">17.13%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.11449999999999999}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-6]">11.45%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2641}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-5]">26.41%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Posco Chemical Co Ltd"}'><strong>Posco Chemical Co Ltd</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.165}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]"><strong>16.50%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0877}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[3]C[-6]"><strong>8.77%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0796}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[2]C[-5]"><strong>7.96%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LG Chem Ltd"}'>LG Chem Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1596}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]">15.96%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0984}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[-6]">9.84%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2395}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[-5]">23.95%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Samsung SDI Co Ltd"}'>Samsung SDI Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1318}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-7]">13.18%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09210000000000002}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[0]C[-6]">9.21%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2296}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[-5]">22.96%</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide Index"}'>Source: KRX &amp; FnGuide Index</td></tr>
</tbody>
</table>
<p>As seen below, these three ETFs spark at least as much a passive flow as the KOSPI 200 if we factor in only passive funds making rebalancing trade on the implementation day. As for Posco Chemical, the three ETFs combined passive flow is nearly 6 times KOSPI 200.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Three sector ETFs combined passive flow"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Three ETFs combined passive flow</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KOSPI 200 passive flow, assuming ₩20T worth of ETFs/index funds making rebalancing trade on the implementation day"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>KOSPI 200 passive flow, assuming ₩20T worth of ETFs/index funds making rebalancing trade on the implementation day</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"KOSPI 200 weight"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>KOSPI 200 weight</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Innovation Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'>SK Innovation Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":526.017932125}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]">₩526.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩218.0B"}'>₩218.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0109}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>1.09%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Posco Chemical Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'><strong>Posco Chemical Co Ltd</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":344.86854409999995}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]"><strong>₩344.9B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩60.0B"}'><strong>₩60.0B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.003}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>0.30%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LG Chem Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'>LG Chem Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":477.52308787499993}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]">₩477.5B</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩580.0B"}'>₩580.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.029}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>2.90%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Samsung SDI Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[10], "name")'>Samsung SDI Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":429.67766040000004}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[0]C[3]+R[0]C[5]+R[0]C[7]">₩429.7B</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩490.0B"}'>₩490.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0245}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>2.45%</td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide Index"}'>Source: KRX &amp; FnGuide Index</td></tr>
</tbody>
</table>
</div>

Korea's local sector ETFs do not usually attract the spotlight as most of them are pretty insignificant in AUM. But a few sector index-mirroring ETFs are quite different. They are as hot as the flagship KOSPI 200-tracking ETFs.The secondary battery sector ETFs are these exceptions. The extreme popularity of the secondary battery sector-ETFs bodes well for the level of investor interest sitting on the sector itself.How hot are they really?
For instance, let's look at the KRX K-New Deal Index.
It has one mother index named the KRX BBIG K-New Deal Index, under which there are four sub-indices. BBIG stands for Battery, Bio, Internet, and Game, representing the four sectors that the New Deal initiative features.

The main index contains 12 large-cap stocks, three of which are from each of the four sectors. We then have four sub-indices, one for each sector. Each sub-index has 10 constituents, selected mainly based on the full market capitalization.
The mother index has three ETFs, and each of the four sub-indices has one ETF. The mother index's combined AUM stands at ₩529.2B at the last close. But the sub-index for the secondary battery has a total of ₩812.8B in AUM, substantially more than the mother index and simply incomparable to the other three sub-indices.










K-New Deal tracking ETFs
Index
Ticker
Market cap


Mirae Asset TIGER KRX BBIG K-New Deal ETF
KRX BBIG K-New Deal Index
364960
₩497.4B


Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3
700003
₩9.6B


TIMEFOLIO TIMEFOLIO BBIG Active ETF
385710
₩22.2B


- Total
-
₩529.2B


Mirae TIGER KRX Secondary Battery K-New Deal ETF
KRX Secondary Battery K-New Deal Index
364980
₩812.8B


Mirae Asset TIGER KRX BIO K-New Deal ETF
KRX Bio K-New Deal Index
364970
₩85.5B


Mirae Asset KRX TIGER Internet K-New Deal ETF
KRX Internet K-New Deal Index
365000
₩45.2B


Mirae Asset KRX TIGER Game K-New Deal ETF
KRX Game K-New Deal Index
364990
₩36.2B

Source: KRX

How substantial is the flow impact?We have three major secondary battery ETFs, with a combined AUM of close to ₩3T.








Name
Samsung KODEX Secondary Battery Industry ETF
Mirae Asset TIGER Secondary Cell ETF
Mirae TIGER KRX Secondary Battery K-New Deal ETF


Market cap
₩1,233.6B
₩873.7B
₩812.8B


Underlying index
FnGuide Secondary Battery Industry Index
WISE Secondary Battery Theme Index
KRX Secondary Battery K-New Deal Index

Source: KRX &amp; FnGuide Index


These are 4 major constituents making all three indices.









4 major constituents making all three indices
Samsung KODEX Secondary Battery Industry ETF
Mirae Asset TIGER Secondary Cell ETF
Mirae TIGER KRX Secondary Battery K-New Deal ETF


SK Innovation Co Ltd
17.13%
11.45%
26.41%


Posco Chemical Co Ltd
16.50%
8.77%
7.96%


LG Chem Ltd
15.96%
9.84%
23.95%


Samsung SDI Co Ltd
13.18%
9.21%
22.96%

Source: KRX &amp; FnGuide Index


As seen below, these three ETFs spark at least as much a passive flow as the KOSPI 200 if we factor in only passive funds making rebalancing trade on the implementation day. As for Posco Chemical, the three ETFs combined passive flow is nearly 6 times KOSPI 200.









Name
Three ETFs combined passive flow
KOSPI 200 passive flow, assuming ₩20T worth of ETFs/index funds making rebalancing trade on the implementation day
KOSPI 200 weight


SK Innovation Co Ltd
₩526.0B
₩218.0B
1.09%


Posco Chemical Co Ltd
₩344.9B
₩60.0B
0.30%


LG Chem Ltd
₩477.5B
₩580.0B
2.90%


Samsung SDI Co Ltd
₩429.7B
₩490.0B
2.45%

Source: KRX &amp; FnGuide Index




Passive Flow Estimations of Two TIGER ETFs on SK IE Tech on Rebalancing Implementation Day

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a><a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a>, <a href="https://www.smartkarma.com/entities/country-garden-services-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services Holdings (6098 HK)</a> and <a href="https://www.smartkarma.com/entities/chow-tai-fook-jewellery-group" target="_blank" data-smartkarma-citation="entities:549:1" rel="noopener">Chow Tai Fook Jewellery (1929 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/ind-comm-bk-of-china-h" target="_blank" data-smartkarma-citation="entities:1119:1" rel="noopener">ICBC (H) (1398 HK)</a>, <a href="https://www.smartkarma.com/entities/asm-pacific-technology-ltd" target="_blank" data-smartkarma-citation="entities:15061:1" rel="noopener">ASM Pacific Technology (522 HK)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/pccw-ltd" target="_blank" data-smartkarma-citation="entities:873:1" rel="noopener">PCCW Ltd (8 HK)</a> and <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a>. Shorts increased in the Consumer Discretionary and Industrials sectors, while decreasing in Financials, Information Technology, Energy and Real Estate.</p></div><div><p>In Japan, stocks increased on <a href="https://www.smartkarma.com/entities/pharma-foods-international" target="_blank" data-smartkarma-citation="entities:10530:1" rel="noopener">Pharma Foods International (2929 JP)</a>, <a href="https://www.smartkarma.com/entities/cyberagent-inc" target="_blank" data-smartkarma-citation="entities:8197:1" rel="noopener">CyberAgent Inc (4751 JP)</a>, <a href="https://www.smartkarma.com/entities/nippon-yusen-kk" target="_blank" data-smartkarma-citation="entities:12285:1" rel="noopener">Nippon Yusen Kk (9101 JP)</a>, <a href="https://www.smartkarma.com/entities/ebara-corp" target="_blank" data-smartkarma-citation="entities:4728:1" rel="noopener">Ebara Corp (6361 JP)</a> and <a href="https://www.smartkarma.com/entities/skylark-co-ltd" target="_blank" data-smartkarma-citation="entities:474:1" rel="noopener">Skylark Co Ltd (3197 JP)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/kyushu-railway-company" target="_blank" data-smartkarma-citation="entities:23609:1" rel="noopener">Kyushu Railway Company (9142 JP)</a>, <a href="https://www.smartkarma.com/entities/marui-group-co-ltd" target="_blank" data-smartkarma-citation="entities:13604:1" rel="noopener">Marui Group (8252 JP)</a>, <a href="https://www.smartkarma.com/entities/chugoku-electric-power-co" target="_blank" data-smartkarma-citation="entities:16243:1" rel="noopener">Chugoku Electric Power Co (9504 JP)</a>, <a href="https://www.smartkarma.com/entities/keihan-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:6120:1" rel="noopener">Keihan Holdings Co., Ltd. (9045 JP)</a> and <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a>. Shorts decreased in almost all sectors led by Industrials, Materials, Consumer Discretionary, Financials and Consumer Staples.</p></div><div><p>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/hmm-co-ltd" target="_blank" data-smartkarma-citation="entities:13494:1" rel="noopener">HMM Co., Ltd. (011200 KS)</a>, <a href="https://www.smartkarma.com/entities/doosan-heavy-industries-construction" target="_blank" data-smartkarma-citation="entities:7389:1" rel="noopener">Doosan Heavy Industries &amp; Construction (034020 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> and <a href="https://www.smartkarma.com/entities/posco-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:12421:1" rel="noopener">Posco Chemical Co Ltd (003670 KS)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a> and <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a>.</p></div><div><p>In Taiwan, shorts increased on <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a>, <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/innolux-corp" target="_blank" data-smartkarma-citation="entities:4509:1" rel="noopener">Innolux Corp (3481 TT)</a>, <a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a> and <a href="https://www.smartkarma.com/entities/hannstar-display-corp" target="_blank" data-smartkarma-citation="entities:13922:1" rel="noopener">Hannstar Display (6116 TT)</a> while shorts covered on <a href="https://www.smartkarma.com/entities/chicony-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:13085:1" rel="noopener">Chicony Electronics (2385 TT)</a>, <a href="https://www.smartkarma.com/entities/chunghwa-telecom-co-ltd" target="_blank" data-smartkarma-citation="entities:9181:1" rel="noopener">Chunghwa Telecom (2412 TT)</a>, <a href="https://www.smartkarma.com/entities/highwealth-construction-corp" target="_blank" data-smartkarma-citation="entities:6739:1" rel="noopener">Highwealth Construction (2542 TT)</a>, <a href="https://www.smartkarma.com/entities/mediatek-inc" target="_blank" data-smartkarma-citation="entities:772:1" rel="noopener">Mediatek Inc (2454 TT)</a> and <a href="https://www.smartkarma.com/entities/quanta-computer-inc" target="_blank" data-smartkarma-citation="entities:2754:1" rel="noopener">Quanta Computer (2382 TT)</a>.</p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Alibaba Group (9988 HK), Ping An Insurance (H) (2318 HK)Kuaishou Technology (1024 HK), Country Garden Services Holdings (6098 HK) and Chow Tai Fook Jewellery (1929 HK) while there was short covering on ICBC (H) (1398 HK), ASM Pacific Technology (522 HK), Tencent (700 HK), PCCW Ltd (8 HK) and Sunny Optical (2382 HK). Shorts increased in the Consumer Discretionary and Industrials sectors, while decreasing in Financials, Information Technology, Energy and Real Estate.In Japan, stocks increased on Pharma Foods International (2929 JP), CyberAgent Inc (4751 JP), Nippon Yusen Kk (9101 JP), Ebara Corp (6361 JP) and Skylark Co Ltd (3197 JP) while there was short covering on Kyushu Railway Company (9142 JP), Marui Group (8252 JP), Chugoku Electric Power Co (9504 JP), Keihan Holdings Co., Ltd. (9045 JP) and Canon Inc (7751 JP). Shorts decreased in almost all sectors led by Industrials, Materials, Consumer Discretionary, Financials and Consumer Staples.In Korea, shorts increased on HMM Co., Ltd. (011200 KS), Doosan Heavy Industries &amp; Construction (034020 KS), LG Chem Ltd (051910 KS) and Posco Chemical Co Ltd (003670 KS) while shorts were covered on Hyundai Motor Co (005380 KS), Samsung Electronics (005930 KS), SK Hynix (000660 KS) and Naver Corp (035420 KS).In Taiwan, shorts increased on AU Optronics (2409 TT), Yageo Corporation (2327 TT), Innolux Corp (3481 TT), Yang Ming Marine Transport (2609 TT) and Hannstar Display (6116 TT) while shorts covered on Chicony Electronics (2385 TT), Chunghwa Telecom (2412 TT), Highwealth Construction (2542 TT), Mediatek Inc (2454 TT) and Quanta Computer (2382 TT).

Asia Shorts: CGS, CTF, ASM Pac, PCCW, KyushuRail, Marui, HMM, Doosan, LG Chem, HMC, Yang Ming

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

SK IE Technology   / Equity Capital Markets

<div class="content-highlight">
<p>Our base case valuation of SK IET is 143,413 won, which represents a 37% upside from the high end of the IPO price range of 105,000 won. Our sensitivity analysis suggests a valuation range of 95,590 won to 201,864 won. To value SK IET, we used EV/EBITDA valuation method, using our base case 2021 EBITDA estimate of 242 billion won and applied a 39.1x EV/EBITDA multiple.</p>
<p>This valuation multiple is 20% premium to the the average EV/EBITDA multiple of the comps in 2021. We believe this 20% premium multiple to the peers is reasonable for SK IET mainly due to the company's higher EBITDA margins and ROE than the comps. </p>
</div><p>We forecast <a href="https://www.smartkarma.com/entities/sk-ie-technology" target="_blank" data-smartkarma-citation="entities:29207:1" rel="noopener">SK IE Technology (SKIET KS)</a> to generate sales of 617.1 billion won (up 31.5% YoY) an operating profit of 163.6 billion won (up 30.7% YoY) in 2021. From 2020 to 2025, we estimate the company's sales to increase at a CAGR of 28%.</p><p>The book building for the SK IET starts on 22 April and it will start trading on 11 May. </p><p>Overall, we have a positive view of the SK IET IPO. However, we would caution investors on having too high of expectations for the IPO similar to SK Bioscience, Kakao Games, or SK Biopharm as we believe that the overall upside for the SK IET is likely to be much lower than these other major Korean IPOs in the past year. </p>


Our base case valuation of SK IET is 143,413 won, which represents a 37% upside from the high end of the IPO price range of 105,000 won. Our sensitivity analysis suggests a valuation range of 95,590 won to 201,864 won. To value SK IET, we used EV/EBITDA valuation method, using our base case 2021 EBITDA estimate of 242 billion won and applied a 39.1x EV/EBITDA multiple.
This valuation multiple is 20% premium to the the average EV/EBITDA multiple of the comps in 2021. We believe this 20% premium multiple to the peers is reasonable for SK IET mainly due to the company's higher EBITDA margins and ROE than the comps. 
We forecast SK IE Technology (SKIET KS) to generate sales of 617.1 billion won (up 31.5% YoY) an operating profit of 163.6 billion won (up 30.7% YoY) in 2021. From 2020 to 2025, we estimate the company's sales to increase at a CAGR of 28%.The book building for the SK IET starts on 22 April and it will start trading on 11 May. Overall, we have a positive view of the SK IET IPO. However, we would caution investors on having too high of expectations for the IPO similar to SK Bioscience, Kakao Games, or SK Biopharm as we believe that the overall upside for the SK IET is likely to be much lower than these other major Korean IPOs in the past year. 

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>There was no report from the SFC this week since Friday was a holiday. The report should be published on Wednesday when markets reopen. For the week from 29 March - 1 April, the highest shorts in notional terms were on <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/tracker-fund-of-hong-kong-ltd" target="_blank" data-smartkarma-citation="entities:29257:1" rel="noopener">Tracker Fund of Hong Kong Ltd (2800 HK)</a>, <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/baidu-inc-a55ca720-5968-48f0-8194-ac94390d065c" target="_blank" data-smartkarma-citation="entities:32212:1" rel="noopener">Baidu (9888 HK)</a>. </p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/base-inc" target="_blank" data-smartkarma-citation="entities:28353:1" rel="noopener">BASE Inc (4477 JP)</a>, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/gmo-payment-gateway-inc" target="_blank" data-smartkarma-citation="entities:1492:1" rel="noopener">GMO Payment Gateway (3769 JP)</a>, <a href="https://www.smartkarma.com/entities/freee-kk" target="_blank" data-smartkarma-citation="entities:28424:1" rel="noopener">freee (4478 JP)</a> and <a href="https://www.smartkarma.com/entities/sanken-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:6073:1" rel="noopener">Sanken Electric (6707 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a>, <a href="https://www.smartkarma.com/entities/japan-airport-terminal-co" target="_blank" data-smartkarma-citation="entities:18034:1" rel="noopener">Japan Airport Terminal Co (9706 JP)</a>, <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-lease-finance" target="_blank" data-smartkarma-citation="entities:1467:1" rel="noopener">Mitsubishi UFJ Lease &amp; Finance (8593 JP)</a>, <a href="https://www.smartkarma.com/entities/change-inc" target="_blank" data-smartkarma-citation="entities:27414:1" rel="noopener">Change Inc (3962 JP)</a> and <a href="https://www.smartkarma.com/entities/benext-group" target="_blank" data-smartkarma-citation="entities:17685:1" rel="noopener">BeNEXT Group (2154 JP)</a>. Shorts increased in the Information Technology and Indsutrials sectors, and decreased in the the Energy sector.</p></div><div><p>In Korea, short increased on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>, <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a> and <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-biologics-co-ltd" target="_blank" data-smartkarma-citation="entities:22932:1" rel="noopener">Samsung Biologics Co., (207940 KS)</a>, <a href="https://www.smartkarma.com/entities/netmarble-corporation" target="_blank" data-smartkarma-citation="entities:22839:1" rel="noopener">Netmarble Corporation (251270 KS)</a> and <a href="https://www.smartkarma.com/entities/posco-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:12421:1" rel="noopener">Posco Chemical Co Ltd (003670 KS)</a>. </p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/inventec-corp" target="_blank" data-smartkarma-citation="entities:20856:1" rel="noopener">Inventec Corp (2356 TT)</a>, <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/richwave-technology-corp" target="_blank" data-smartkarma-citation="entities:18629:1" rel="noopener">Richwave Technology (4968 TT)</a> and <a href="https://www.smartkarma.com/entities/asia-cement-corp" target="_blank" data-smartkarma-citation="entities:15350:1" rel="noopener">Asia Cement (1102 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/mediatek-inc" target="_blank" data-smartkarma-citation="entities:772:1" rel="noopener">Mediatek Inc (2454 TT)</a>, <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a> and <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.There was no report from the SFC this week since Friday was a holiday. The report should be published on Wednesday when markets reopen. For the week from 29 March - 1 April, the highest shorts in notional terms were on Tencent Holdings (700 HK), Tracker Fund of Hong Kong Ltd (2800 HK), Ping An Insurance (H) (2318 HK), Meituan (3690 HK) and Baidu (9888 HK). In Japan, stocks that saw the most shorts were BASE Inc (4477 JP), Toshiba Corp (6502 JP), GMO Payment Gateway (3769 JP), freee (4478 JP) and Sanken Electric (6707 JP) while shorts decreased on ENEOS Holdings (5020 JP), Japan Airport Terminal Co (9706 JP), Mitsubishi UFJ Lease &amp; Finance (8593 JP), Change Inc (3962 JP) and BeNEXT Group (2154 JP). Shorts increased in the Information Technology and Indsutrials sectors, and decreased in the the Energy sector.In Korea, short increased on Samsung Electronics (005930 KS), SK Hynix (000660 KS), Naver Corp (035420 KS) and Hyundai Motor Co (005380 KS) while shorts decreased on Celltrion Inc (068270 KS), Samsung Biologics Co., (207940 KS), Netmarble Corporation (251270 KS) and Posco Chemical Co Ltd (003670 KS). Stocks in Taiwan that saw the highest increase in shorts were Inventec Corp (2356 TT), Yageo Corporation (2327 TT), Richwave Technology (4968 TT) and Asia Cement (1102 TT) while shorts were covered on TSMC (2330 TT), Mediatek Inc (2454 TT), United Microelectronics Corp (2303 TT) and AU Optronics (2409 TT). 

Asia Short Interest: Tencent, Ping An, Baidu, BASE, Toshiba, GMO Payment, BeNext, Inventec, Mediatek

<div class="content-highlight"><ul>
<li>SK IET plans to complete its IPO in May.  The IPO price range is from 78,000 won to 105,000 won. The IPO base deal size is from $1.5 billion to $2.0 billion. According to the bankers' valuation, the expected market cap of SK IET is from 5.6 trillion won to 7.5 trillion won. SK IET IPO will be the biggest IPO in Korea so far this year, beating <a href="https://www.smartkarma.com/entities/sk-bioscience-co-ltd" target="_blank" data-smartkarma-citation="entities:31484:1" rel="noopener">SK Bioscience (302440 KS)</a> which recently raised $1.3 billion in its IPO in March. </li>
<li>The company will offer 21.39 million shares in the IPO (8.56 million new shares and 12.83 million old shares). The offered shares of 21.39 million represents nearly 30% of the outstanding shares (post IPO), which is large relative to its total outstanding shares. SK Innovation, which has a 90% stake in SK IET, plans to sell a 22.7% stake in the company in this IPO. In September 2020, SK Innovation sold a 10% stake in <a href="https://www.kedglobal.com/newsView/ked202009220004" target="_blank" rel="noopener">SK IET</a> for 300 billion won to Premier Partners, a local fund management company. </li>
<li>SK IET generated 197 billion won in EBITDA in 2020. Applying a 48.1x EV/EBITDA multiple (average valuation multiple of the company's comps), this results in an EV of 9,458 billion won and implied market cap of 9,309 billion won (130,572 won per share). After applying IPO discount 19.6% - 40.3%, this results in an IPO price range of 78,000 - 105,000 won. </li>
</ul></div>


SK IET plans to complete its IPO in May.  The IPO price range is from 78,000 won to 105,000 won. The IPO base deal size is from $1.5 billion to $2.0 billion. According to the bankers' valuation, the expected market cap of SK IET is from 5.6 trillion won to 7.5 trillion won. SK IET IPO will be the biggest IPO in Korea so far this year, beating SK Bioscience (302440 KS) which recently raised $1.3 billion in its IPO in March. 
The company will offer 21.39 million shares in the IPO (8.56 million new shares and 12.83 million old shares). The offered shares of 21.39 million represents nearly 30% of the outstanding shares (post IPO), which is large relative to its total outstanding shares. SK Innovation, which has a 90% stake in SK IET, plans to sell a 22.7% stake in the company in this IPO. In September 2020, SK Innovation sold a 10% stake in SK IET for 300 billion won to Premier Partners, a local fund management company. 
SK IET generated 197 billion won in EBITDA in 2020. Applying a 48.1x EV/EBITDA multiple (average valuation multiple of the company's comps), this results in an EV of 9,458 billion won and implied market cap of 9,309 billion won (130,572 won per share). After applying IPO discount 19.6% - 40.3%, this results in an IPO price range of 78,000 - 105,000 won. 


South Korea

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.

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

Posco Future M (003670 KS)

Passive Flow Estimations of Two TIGER ETFs on SK IE Tech on Rebalancing Implementation Day

This post has passive flow estimations of two TIGER ETFs directly impacting SK IE Technology in the upcoming rebalancing.

Sanghyun Park

Asia Shorts: CGS, CTF, ASM Pac, PCCW, KyushuRail, Marui, HMM, Doosan, LG Chem, HMC, Yang Ming

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

SK IET Valuation Analysis

Our base case valuation of SK IET is 143,413 won, which represents a 37% upside from the high end of the IPO price range of 105,000 won.

Douglas Kim

Asia Short Interest: Tencent, Ping An, Baidu, BASE, Toshiba, GMO Payment, BeNext, Inventec, Mediatek

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

SK IET IPO Preview

SK IET plans to complete its IPO in May. The IPO price range is from 78,000 won to 105,000 won. The IPO base deal size is from $1.5 billion to...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)