Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

HDC Hyundai Development Co-Engineering & Construction / Equity Bottom-Up

HDC Hyundai Development Co-Engineering & Construction

<ul>
<li>On 28 January, the government (Ministry of Land, Infrastructure and Transport) announced that it has recommended the heaviest punishment of the cancellation of the construction license for HDC Hyundai Development.</li>
<li>Seoul city government said it will make a decision on the fate of HDC Hyundai Development within six months.</li>
<li>Rather than a complete, permanent cancellation of the company's business license, a more likely scenario is about 6 to 12 months of temporary business operation suspension, in our view. </li>
</ul>


On 28 January, the government (Ministry of Land, Infrastructure and Transport) announced that it has recommended the heaviest punishment of the cancellation of the construction license for HDC Hyundai Development.
Seoul city government said it will make a decision on the fate of HDC Hyundai Development within six months.
Rather than a complete, permanent cancellation of the company's business license, a more likely scenario is about 6 to 12 months of temporary business operation suspension, in our view. 


HDC Hyundai Development: Permanent Business License Cancellation or Temporary Business Suspension?

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>The KRX announced the list of inclusions and exclusions to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" rel="noopener" data-smartkarma-citation="entities:26021:1">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.</p><p>There are 11 inclusions and 11 exclusions in the June 2020 review with an estimated one-way turnover of 0.87%.</p><p>The inclusions and exclusions are tabulated here.</p><table class="table table-striped">
<colgroup><col span="4"></colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 96pt;" colspan="2">INCLUSIONS</td>
<td style="text-align: center; width: 96pt;" colspan="2">EXCLUSIONS</td>
</tr>
<tr>
<td>003670.KS</td>
<td>Posco Chemical Co Ltd</td>
<td>001520.KS</td>
<td>Tongyang Inc</td>
</tr>
<tr>
<td>007700.KS</td>
<td>F&amp;F Co Ltd</td>
<td>002960.KS</td>
<td>Hankook Shell Oil Co Ltd</td>
</tr>
<tr>
<td>009410.KS</td>
<td>Taeyoung Engineering &amp; Construction Co Ltd</td>
<td>003620.KS</td>
<td>Ssangyong Motor Co Ltd</td>
</tr>
<tr>
<td>011200.KS</td>
<td>HMM Co Ltd</td>
<td>003920.KS</td>
<td>Namyang Dairy Products Co Ltd</td>
</tr>
<tr>
<td>016380.KS</td>
<td>KG DongbuSteel Co Ltd</td>
<td>005850.KS</td>
<td>SL Corp</td>
</tr>
<tr>
<td>020560.KS</td>
<td>Asiana Airlines Inc</td>
<td>006840.KS</td>
<td>AK Holdings Inc</td>
</tr>
<tr>
<td>032350.KS</td>
<td>Lotte Tour Development Co Ltd</td>
<td>008060.KS</td>
<td>Daeduck Co Ltd</td>
</tr>
<tr>
<td>180640.KS</td>
<td>Hanjin Kal</td>
<td>025540.KS</td>
<td>Korea Electric Terminal Co Ltd</td>
</tr>
<tr>
<td>192080.KS</td>
<td>DoubleU Games Co Ltd</td>
<td>079430.KS</td>
<td>Hyundai Livart Furniture Co Ltd</td>
</tr>
<tr>
<td>241590.KS</td>
<td>Hwaseung Enterprise Co Ltd</td>
<td>096760.KS</td>
<td>JW Holdings Corp</td>
</tr>
<tr>
<td>284740.KS</td>
<td>Cuckoo Homesys Co Ltd</td>
<td>298040.KS</td>
<td>Hyosung Heavy Industries Corp</td>
</tr>
</tbody>
</table><p>There are 11 days trading days to implementation day and there is significant volume to trade on quite a few of the inclusions and exclusions, so there will be a fair bit of volatility and opportunities to make money.</p>

The KRX announced the list of inclusions and exclusions to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.There are 11 inclusions and 11 exclusions in the June 2020 review with an estimated one-way turnover of 0.87%.The inclusions and exclusions are tabulated here.



INCLUSIONS
EXCLUSIONS


003670.KS
Posco Chemical Co Ltd
001520.KS
Tongyang Inc


007700.KS
F&amp;F Co Ltd
002960.KS
Hankook Shell Oil Co Ltd


009410.KS
Taeyoung Engineering &amp; Construction Co Ltd
003620.KS
Ssangyong Motor Co Ltd


011200.KS
HMM Co Ltd
003920.KS
Namyang Dairy Products Co Ltd


016380.KS
KG DongbuSteel Co Ltd
005850.KS
SL Corp


020560.KS
Asiana Airlines Inc
006840.KS
AK Holdings Inc


032350.KS
Lotte Tour Development Co Ltd
008060.KS
Daeduck Co Ltd


180640.KS
Hanjin Kal
025540.KS
Korea Electric Terminal Co Ltd


192080.KS
DoubleU Games Co Ltd
079430.KS
Hyundai Livart Furniture Co Ltd


241590.KS
Hwaseung Enterprise Co Ltd
096760.KS
JW Holdings Corp


284740.KS
Cuckoo Homesys Co Ltd
298040.KS
Hyosung Heavy Industries Corp


There are 11 days trading days to implementation day and there is significant volume to trade on quite a few of the inclusions and exclusions, so there will be a fair bit of volatility and opportunities to make money.

Event-Driven

<div><p>The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSPI 200 in the second half of May. The constituent changes will be effective from 12 June 2020 and the rebalancing trades will need to be done at the closing auction on 11 June 2020.</p></div><div><p>In this Insight we look at the KOSPI 200 index methodology, the historical performance of inclusions vs exclusions, at the expected candidates for inclusion/exclusion in this review and some of the details around the names.</p></div><div>
<p>Following the completion of the review period on 29 April, we see 12 stocks being added to and deleted from the index.</p>
<table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 259pt;" colspan="3">EXPECTED INCLUSIONS</td>
<td style="text-align: center; width: 214pt;" colspan="3">EXPECTED EXCLUSIONS</td>
</tr>
<tr>
<td style="text-align: center;"><strong>Code</strong></td>
<td style="text-align: center;"><strong>Name</strong></td>
<td style="text-align: center;"><strong>Conviction</strong></td>
<td style="text-align: center;"><strong>Code</strong></td>
<td style="text-align: center;"><strong>Name</strong></td>
<td style="text-align: center;"><strong>Conviction</strong></td>
</tr>
<tr>
<td>003670.KS</td>
<td>POSCO CHEMICAL</td>
<td>HIGH</td>
<td>002270.KS</td>
<td>LOTTE FOOD</td>
<td>HIGH</td>
</tr>
<tr>
<td>180640.KS</td>
<td>HANJINKAL</td>
<td>HIGH</td>
<td>060980.KS</td>
<td>HALLA HOLDINGS</td>
<td>HIGH</td>
</tr>
<tr>
<td>007700.KS</td>
<td>F&amp;F</td>
<td>HIGH</td>
<td>002960.KS</td>
<td>HANKOOK SHELL OIL</td>
<td>HIGH</td>
</tr>
<tr>
<td>013890.KS</td>
<td>ZINUS</td>
<td>HIGH</td>
<td>025540.KS</td>
<td>KOR ELEC TERM</td>
<td>HIGH</td>
</tr>
<tr>
<td>011200.KS</td>
<td>HYUNDAI MERC MAR</td>
<td>HIGH</td>
<td>096760.KS</td>
<td>JW HOLDINGS</td>
<td>HIGH</td>
</tr>
<tr>
<td>020560.KS</td>
<td>ASIANA AIRLINES</td>
<td>HIGH</td>
<td>002240.KS</td>
<td>KIS WIRE</td>
<td>HIGH</td>
</tr>
<tr>
<td>009410.KS</td>
<td>TAEYOUNG E&amp;C</td>
<td>HIGH</td>
<td>001520.KS</td>
<td>TONGYANG</td>
<td>HIGH</td>
</tr>
<tr>
<td>241590.KS</td>
<td>HWASEUNG ENTERPRISE</td>
<td>HIGH</td>
<td>003920.KS</td>
<td>NAMYANG DAIRY</td>
<td>HIGH</td>
</tr>
<tr>
<td>192080.KS</td>
<td>DOUBLEUGAMES</td>
<td>HIGH</td>
<td>003620.KS</td>
<td>SSANGYONG MTR</td>
<td>HIGH</td>
</tr>
<tr>
<td>284740.KS</td>
<td>CUCKOO HOMESYS</td>
<td>HIGH</td>
<td>079430.KS</td>
<td>HYUNDAI LIVART</td>
<td>HIGH</td>
</tr>
<tr>
<td>032350.KS</td>
<td>LOTTE TOUR</td>
<td>HIGH</td>
<td>298040.KS</td>
<td>HYOSUNG HEAVY</td>
<td>HIGH</td>
</tr>
<tr>
<td>016380.KS</td>
<td>DONGBU STL</td>
<td>LOW</td>
<td>014830.KS</td>
<td>UNID</td>
<td>LOW</td>
</tr>
</tbody>
</table>
<p>The KRX also <a href="http://eindex.krx.co.kr/board/GLB0501070000/bbs#view=20348" target="_blank" rel="noopener">announced</a> that they were repealing the 30% capping rule in the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" rel="noopener" data-smartkarma-citation="entities:26021:1">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a>, so there will not be any capping of <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:191:1">Samsung Electronics (005930 KS)</a> in this review or any further reviews. </p>
</div>

The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSPI 200 in the second half of May. The constituent changes will be effective from 12 June 2020 and the rebalancing trades will need to be done at the closing auction on 11 June 2020.In this Insight we look at the KOSPI 200 index methodology, the historical performance of inclusions vs exclusions, at the expected candidates for inclusion/exclusion in this review and some of the details around the names.
Following the completion of the review period on 29 April, we see 12 stocks being added to and deleted from the index.











EXPECTED INCLUSIONS
EXPECTED EXCLUSIONS


Code
Name
Conviction
Code
Name
Conviction


003670.KS
POSCO CHEMICAL
HIGH
002270.KS
LOTTE FOOD
HIGH


180640.KS
HANJINKAL
HIGH
060980.KS
HALLA HOLDINGS
HIGH


007700.KS
F&amp;F
HIGH
002960.KS
HANKOOK SHELL OIL
HIGH


013890.KS
ZINUS
HIGH
025540.KS
KOR ELEC TERM
HIGH


011200.KS
HYUNDAI MERC MAR
HIGH
096760.KS
JW HOLDINGS
HIGH


020560.KS
ASIANA AIRLINES
HIGH
002240.KS
KIS WIRE
HIGH


009410.KS
TAEYOUNG E&amp;C
HIGH
001520.KS
TONGYANG
HIGH


241590.KS
HWASEUNG ENTERPRISE
HIGH
003920.KS
NAMYANG DAIRY
HIGH


192080.KS
DOUBLEUGAMES
HIGH
003620.KS
SSANGYONG MTR
HIGH


284740.KS
CUCKOO HOMESYS
HIGH
079430.KS
HYUNDAI LIVART
HIGH


032350.KS
LOTTE TOUR
HIGH
298040.KS
HYOSUNG HEAVY
HIGH


016380.KS
DONGBU STL
LOW
014830.KS
UNID
LOW



The KRX also announced that they were repealing the 30% capping rule in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX), so there will not be any capping of Samsung Electronics (005930 KS) in this review or any further reviews. 


KOSPI200 Rebalance Preview: The Final Cut

Korea Event-Driven and Corporate Governance, DewPoint Research

Yeaseul Lim

Korea Event-Driven and Corporate Governance

Independent Equity Research Provider - South Korea

DewPoint Research

At DewPoint, we aim to convey a clear understanding of a company’s approach to capital allocation. As a matter of corporate governance, capital allocation reflects whose interests a company prioritizes when making management decisions. Given the Korean context, it comes down to a question of whether the company undermines the interests of minority shareholders for private benefits of controlling shareholders. This is what we focus on as a fundamental starting point in our research.
 
Capital allocation principles and practices provide the foundation for a company’s sustainable value creation. Thus, investors need to be alert to any possible distortions in capital allocation, especially when they take a long-term perspective. They also want to find safe stocks with committed management, no separation between ownership and control, and robust business models. We seek to fulfill such needs in a disciplined manner.
 
We also work as a representative of foreign investors who are willing to exercise active ownership in their investee companies. Our service may include identifying stocks that are fundamentally strong but vulnerable to activist attacks.

<div class="content-highlight">
<p><em>We first started paying attention to <a href="https://www.smartkarma.com/entities/hanssem-co-ltd" target="_blank" data-smartkarma-citation="entities:18502:1" rel="noopener">Hanssem Co Ltd (009240 KS)</a> given its low ownership stakes of controlling shareholders (31.3%), large amounts of treasury shares (25.1%), and the increased presence of institutional investors (National Pension Service of Korea 6.4% &amp; Teton Capital Partners 8.6%). Also, the company saw a sharp fall in profits and stock prices last year. We thought that this stock might be vulnerable to activist investors and/or could be re-rated if the company cancels its treasury shares. As we conduct our research, we found possible risks associated with the company's business models as well as appropriation of corporate opportunity and tunneling. Some risks have recently become a reality. <strong>This insight seeks to alert investors to those risks and suggest stewardship priorities. I will come back later with more research on South Korea's housing market and Hanssem's business valuations.  </strong></em></p>
</div>
<p><a href="https://www.smartkarma.com/entities/hanssem-co-ltd" target="_blank" data-smartkarma-citation="entities:18502:1" rel="noopener">Hanssem Co Ltd (009240 KS)</a> is not just an interior furniture manufacturer or home improvement company. It has embarked on aggressive expansion plans to be a platform that brings suppliers, designers, architects, contractors, and consumers under the brand name of <em>Hanssem Rehaus</em>. <strong>Yet, it must be overly ambitious - Hanssem is facing a brand reputation crisis and litigation risks. Below explains how this <em>Hanssen Rehaus</em> model works.</strong></p>
<ul class="">
<li>
<strong>Salespersons and designers</strong> who work at the <em>Hanssem Rehaus</em> flagship and agency stores are not employees of Hanssem but of local interior renovation stores. Those stores sign a cooperation agreement with Hanssem in order to rely on its strong brand reputations and operating resources. Instead, the stores are in charge of providing human resources, which helps Hanssem reduce labor costs. As a return, Hanssem provides them with an initial investment required for opening a new <em>Rehaus</em> agency store. After that, the stores have to bear 50% of the maintenance costs, while Hanssem pays another half. </li>
<li>
<strong>Customers</strong> sign a renovation contract with agency stores, not exactly Hanssem. Based on the contract, the stores place an order for products to Hanssem. Other than its own brand furniture, Hanssem purchases products (e.g. balcony windows, floor and wall tiles) from external manufacturers and then re-sell them to agency stores. </li>
<li>
<strong>Renovation contractors</strong> are matched with customers by agency stores. Each store has a pool of renovation contractors. Those contractors are freelancers and loosely managed by Hanssem.</li>
</ul>
<div class="content-highlight">
<p><strong>What are the possible problems that may inevitably arise out of this business model?</strong> First, it is not clear who is responsible for addressing consumer complaints filed against contractors or designers. Neither of them are employed or supervised by Hanssem. However, customers sign the deal because of Hanssem's brand reputations. Second, there must be conflicts of the interests of varied stakeholders when splitting revenue and costs. This issue is relevant to the Korea Fair Trade Commission's recent decision to levy a fine of over 1 billion KRW against <a href="https://www.smartkarma.com/entities/hanssem-co-ltd" target="_blank" data-smartkarma-citation="entities:18502:1" rel="noopener">Hanssem Co Ltd (009240 KS)</a> for abusing agencies. </p>
</div>
<hr>
<p><strong>We also suspect that <a href="https://www.smartkarma.com/entities/hanssem-co-ltd" target="_blank" data-smartkarma-citation="entities:18502:1" rel="noopener">Hanssem Co Ltd (009240 KS)</a>  has pocketed some cash at the expense of minority shareholders by using the same tricks as other Korean conglomerates.</strong> This might surprise foreign investors given that Hanssem has been run by a non-family CEO &amp; Chairman for years. The thing is that its non-family top executives have also reaped benefits from such unfair trade practices. There are three private companies whose majority stakes are owned by founding families and executives as follows: </p>
<ul class="">
<li>
<strong>Hanssem Effex (Top mgt. 32% / Family 25% / Hanssem 38%) </strong>polishes raw marble and supplies it to Hanssem. Marble dining tables and kitchen cabinets are one of the Hanssem's flagship products. Within Hanssem Effex's unconsolidated revenue, Hanssem-related revenue commands roughly a 45% share. It also started to provide high-end office furniture called Hanssem Viitz, which is led by a son of Choi Yang-ha, a former CEO &amp; Chairman of Hanssem. </li>
<li>
<strong>Hanssem Nexus (Top mgt. 31% / Family 31% / Hanssem 37%) </strong>offers high-end European kitchen brands. Those brands inevitably compete with Hanssem's own kitchen brand (KitchenBach). If a consumer can afford, he (or she) may likely choose global luxury brands. If visiting KitchenBach stores, you can see promotional flyers of Hanssem Nexus lying on the KitchenBach dining table. </li>
<li>
<strong>Hanssem Domus (Top mgt. 35% / Family 26% / Hanssem 38%) </strong>imports high-end sofas from overseas, mostly Europe. It also competes with Hanssem's own sofa brands. Domus uses one entire floor of the Hanssem flagship stores, while Hanssem sofas are displayed downstairs. </li>
</ul>
<div class="content-highlight">
<p><strong>Why this matters especially now when <a href="https://www.smartkarma.com/entities/hanssem-co-ltd" target="_blank" data-smartkarma-citation="entities:18502:1" rel="noopener">Hanssem Co Ltd (009240 KS)</a> struggles with growth and margins?</strong> Hanssem recently saw a big drop in revenue and profits partly due to a downturn of domestic housing markets, which I will cover later. As described above, Hanssem Effex, Hanssem Nexus, and Hanssem Domus offers high-end brands that possibly attract affluent consumers and/or ones with exquisite taste. This could help the company restore growth and improve margins. <a href="https://www.smartkarma.com/entities/hyundai-livart-co-ltd" target="_blank" data-smartkarma-citation="entities:15584:1" rel="noopener">Hyundai Livart (079430 KS)</a>, a major competitor of Hanssem, has also been eager to bring overseas high-end brands to a domestic market so that it can capitalize on consumers' increasing inclination to spend more on furnishing the house. Hyundai Livart's luxury brands are run by itself, not by its subsidiaries or affiliates. Given that, it makes no sense that Hanssem does not wholly own those three companies but just gives up its business opportunities for the interests of controlling shareholders. </p>
</div>


We first started paying attention to Hanssem Co Ltd (009240 KS) given its low ownership stakes of controlling shareholders (31.3%), large amounts of treasury shares (25.1%), and the increased presence of institutional investors (National Pension Service of Korea 6.4% &amp; Teton Capital Partners 8.6%). Also, the company saw a sharp fall in profits and stock prices last year. We thought that this stock might be vulnerable to activist investors and/or could be re-rated if the company cancels its treasury shares. As we conduct our research, we found possible risks associated with the company's business models as well as appropriation of corporate opportunity and tunneling. Some risks have recently become a reality. This insight seeks to alert investors to those risks and suggest stewardship priorities. I will come back later with more research on South Korea's housing market and Hanssem's business valuations.  

Hanssem Co Ltd (009240 KS) is not just an interior furniture manufacturer or home improvement company. It has embarked on aggressive expansion plans to be a platform that brings suppliers, designers, architects, contractors, and consumers under the brand name of Hanssem Rehaus. Yet, it must be overly ambitious - Hanssem is facing a brand reputation crisis and litigation risks. Below explains how this Hanssen Rehaus model works.


Salespersons and designers who work at the Hanssem Rehaus flagship and agency stores are not employees of Hanssem but of local interior renovation stores. Those stores sign a cooperation agreement with Hanssem in order to rely on its strong brand reputations and operating resources. Instead, the stores are in charge of providing human resources, which helps Hanssem reduce labor costs. As a return, Hanssem provides them with an initial investment required for opening a new Rehaus agency store. After that, the stores have to bear 50% of the maintenance costs, while Hanssem pays another half. 

Customers sign a renovation contract with agency stores, not exactly Hanssem. Based on the contract, the stores place an order for products to Hanssem. Other than its own brand furniture, Hanssem purchases products (e.g. balcony windows, floor and wall tiles) from external manufacturers and then re-sell them to agency stores. 

Renovation contractors are matched with customers by agency stores. Each store has a pool of renovation contractors. Those contractors are freelancers and loosely managed by Hanssem.


What are the possible problems that may inevitably arise out of this business model? First, it is not clear who is responsible for addressing consumer complaints filed against contractors or designers. Neither of them are employed or supervised by Hanssem. However, customers sign the deal because of Hanssem's brand reputations. Second, there must be conflicts of the interests of varied stakeholders when splitting revenue and costs. This issue is relevant to the Korea Fair Trade Commission's recent decision to levy a fine of over 1 billion KRW against Hanssem Co Ltd (009240 KS) for abusing agencies. 


We also suspect that Hanssem Co Ltd (009240 KS)  has pocketed some cash at the expense of minority shareholders by using the same tricks as other Korean conglomerates. This might surprise foreign investors given that Hanssem has been run by a non-family CEO &amp; Chairman for years. The thing is that its non-family top executives have also reaped benefits from such unfair trade practices. There are three private companies whose majority stakes are owned by founding families and executives as follows: 


Hanssem Effex (Top mgt. 32% / Family 25% / Hanssem 38%) polishes raw marble and supplies it to Hanssem. Marble dining tables and kitchen cabinets are one of the Hanssem's flagship products. Within Hanssem Effex's unconsolidated revenue, Hanssem-related revenue commands roughly a 45% share. It also started to provide high-end office furniture called Hanssem Viitz, which is led by a son of Choi Yang-ha, a former CEO &amp; Chairman of Hanssem. 

Hanssem Nexus (Top mgt. 31% / Family 31% / Hanssem 37%) offers high-end European kitchen brands. Those brands inevitably compete with Hanssem's own kitchen brand (KitchenBach). If a consumer can afford, he (or she) may likely choose global luxury brands. If visiting KitchenBach stores, you can see promotional flyers of Hanssem Nexus lying on the KitchenBach dining table. 

Hanssem Domus (Top mgt. 35% / Family 26% / Hanssem 38%) imports high-end sofas from overseas, mostly Europe. It also competes with Hanssem's own sofa brands. Domus uses one entire floor of the Hanssem flagship stores, while Hanssem sofas are displayed downstairs. 


Why this matters especially now when Hanssem Co Ltd (009240 KS) struggles with growth and margins? Hanssem recently saw a big drop in revenue and profits partly due to a downturn of domestic housing markets, which I will cover later. As described above, Hanssem Effex, Hanssem Nexus, and Hanssem Domus offers high-end brands that possibly attract affluent consumers and/or ones with exquisite taste. This could help the company restore growth and improve margins. Hyundai Livart (079430 KS), a major competitor of Hanssem, has also been eager to bring overseas high-end brands to a domestic market so that it can capitalize on consumers' increasing inclination to spend more on furnishing the house. Hyundai Livart's luxury brands are run by itself, not by its subsidiaries or affiliates. Given that, it makes no sense that Hanssem does not wholly own those three companies but just gives up its business opportunities for the interests of controlling shareholders. 


Deep Dive Into Hanssem's Money Making: Risks Becoming A Material Concern For Investors

<p>The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSDAQ 150 index in May. The constituent changes will be effective from 12 June 2020 and the rebalancing trades will need to be done at the closing auction on 11 June 2020.</p><p>In this Insight we look at the KOSDAQ 150 index methodology, the historical performance of inclusions vs exclusions, at potential candidates for inclusion/exclusion in this review and some of the details around the names.</p><p>At the current time, we see nine stocks being added to and deleted from the index with another four stocks as very close adds and three close deletes.</p><p>The expected inclusions have outperformed the expected exclusions by 9% over the last six trading sessions and this outperformance could continue as positions are built in the stocks.</p>

The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSDAQ 150 index in May. The constituent changes will be effective from 12 June 2020 and the rebalancing trades will need to be done at the closing auction on 11 June 2020.In this Insight we look at the KOSDAQ 150 index methodology, the historical performance of inclusions vs exclusions, at potential candidates for inclusion/exclusion in this review and some of the details around the names.At the current time, we see nine stocks being added to and deleted from the index with another four stocks as very close adds and three close deletes.The expected inclusions have outperformed the expected exclusions by 9% over the last six trading sessions and this outperformance could continue as positions are built in the stocks.

KOSDAQ150 Rebalance Preview - Stocks Starting to Move

South Korea

Hyundai Livart Co Ltd designs and manufactures furniture.  The Company produces a variety of furniture, such as bed, chair, desk, and closet used in bedroom, living room, and office.

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