Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<div class="content-highlight">
<p>On 25 March in the AGM, SK Telecom's CEO Park Jung-Ho emphasized that a major corporate governance reorganization will be completed this year. Following this announcement, SK Telecom's shares are up 8% today. For those investors following <a href="https://www.smartkarma.com/entities/sk-telecom-co-ltd-bbccd86c-474d-4a4d-946d-10e911a225a2" target="_blank" data-smartkarma-citation="entities:395:1" rel="noopener">SK Telecom (017670 KS)</a> closely, the company has hinted about this move for the past 5+ years.</p>
<p><em>So, is the company crying wolf this time around again? This time around, we do not believe SK Telecom is crying wolf. Rather, we believe there is a 95%+ probability that the company announces a major corporate reorganization plan sometime in April/May this year, which should unlock a greater value from SK Telecom. We continue to maintain a positive view of SK Telecom. </em></p>
</div>


On 25 March in the AGM, SK Telecom's CEO Park Jung-Ho emphasized that a major corporate governance reorganization will be completed this year. Following this announcement, SK Telecom's shares are up 8% today. For those investors following SK Telecom (017670 KS) closely, the company has hinted about this move for the past 5+ years.
So, is the company crying wolf this time around again? This time around, we do not believe SK Telecom is crying wolf. Rather, we believe there is a 95%+ probability that the company announces a major corporate reorganization plan sometime in April/May this year, which should unlock a greater value from SK Telecom. We continue to maintain a positive view of SK Telecom. 


SK Telecom's CEO Confirms A Major Corporate Governance Reorganization Will Be Completed in 2021

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.

The Korea NPS set a record selling spree lately. The funds had extended stock sell-offs on KOSPI to a 51st straight session on March 12 since December 24 last year.It was a record in the local market history. The previous record was 28 consecutive sessions set from August 3 to September 9, 2009.The NPS finally wrapped the selling on March 15 but soon reversed to the selling position, and the ongoing sell-offs now extend to a 6th straight session.









KOSPI
Retail
Foreign
Local inst
Pension


2021-03-24
8,963
-4,780
-4,335
-2,262


2021-03-23
10,170
-4,769
-5,409
-3,399


2021-03-22
5,831
-5,465
-339
-1,744


2021-03-19
16,029
-5,806
-10,018
-2,196


2021-03-18
-6,174
4,823
1,344
-1,893


2021-03-17
10,483
-5,240
-5,339
-2,421


2021-03-16
-2,340
-262
2,491
851


2021-03-15
5,105
-2,133
-3,002
1,105


2021-03-12
-5,997
4,070
1,833
-850


2021-03-11
-11,110
17,069
-5,917
-3,022


2021-03-10
4,006
4,803
-8,891
-2,657


2021-03-09
3,631
-5,305
2,920
-421


2021-03-08
5,253
-1,258
-3,777
-2,728


2021-03-05
11,931
-3,734
-8,043
-1,954


2021-03-04
21,992
-9,293
-12,840
-3,220


2021-03-03
-6,631
-119
6,896
-472


2021-03-02
-6,249
2,081
4,371
-1,084


2021-02-26
37,785
-28,174
-10,301
-1,145


2021-02-25
-19,361
9,701
9,749
-345


2021-02-24
5,614
6,366
-825
-1,976


2021-02-23
773
-2,955
3,387
-211


2021-02-22
7,497
-3,155
-4,601
-3,831


2021-02-19
3,742
-2,981
-656
-856


2021-02-18
14,677
-8,571
-6,130
-3,286


2021-02-17
18,107
-4,815
-13,465
-3,538


2021-02-16
4,226
2,416
-6,685
-2,802


2021-02-15
-3,526
7,317
-4,193
-2,451


2021-02-10
1,302
7,520
-9,166
-3,224


2021-02-09
487
-2,223
1,568
-2,239


2021-02-08
847
-3,584
2,805
-2,206


2021-02-05
-4,021
1,900
2,343
-2,008


2021-02-04
24,704
-6,394
-18,357
-3,756


2021-02-03
1,239
4,265
-5,740
-3,576


2021-02-02
-1,883
1,966
-131
-3,664


2021-02-01
-7,825
1,319
6,892
-2,078


2021-01-29
16,971
-14,220
-2,544
-1,160


2021-01-28
19,294
-15,670
-3,794
-2,599


2021-01-27
10,604
-6,216
-3,961
-2,616


2021-01-26
42,050
-19,699
-22,520
-6,433


2021-01-25
-5,712
2,793
3,688
-2,073


2021-01-22
16,083
-2,680
-13,648
-3,753


2021-01-21
-625
3,683
-2,927
-2,702


2021-01-20
14,368
-2,368
-12,345
-3,949


2021-01-19
-10,254
4,100
5,940
-3,923


2021-01-18
5,143
-2,094
-2,789
-4,335


2021-01-15
21,139
-7,536
-14,147
-5,204


2021-01-14
7,127
6,775
-14,290
-5,978


2021-01-13
1,691
1,935
-3,725
-3,232


2021-01-12
23,124
-6,189
-17,239
-2,878


2021-01-11
44,921
-7,176
-37,432
-8,278


2021-01-08
-5,591
16,435
-11,479
-6,090


2021-01-07
-11,836
1,134
10,339
-4,411


2021-01-06
17,293
-3,975
-13,692
-4,396


2021-01-05
7,284
-2,082
-5,363
-3,400


2021-01-04
10,310
897
-11,899
-3,237


2020-12-30
-4,916
2,458
1,959
-1,003


2020-12-29
21,969
-3,106
-19,734
-1,978


2020-12-28
-9,460
780
8,303
-762


2020-12-24
-8,031
1,192
6,297
-988


Net
372,223
-86,229
-278,563
-156,937

Source: KRX

Why sell-offs?The NPS set the domestic equity target at 17.3% last year and 16.8% for this year.(Source: Korea NPS)As of the FY20 yearend, the weight soared to 21.2%, 3.9%p above the threshold.(Source: Korea NPS)But that was within the tolerable band.The NPS can operate the domestic stock funds within a total of ±5.0%p (SAA ±2.0%p + TAA ±3.0%p) allowable range.More specifically, it is said that the SAA ±2.0%p tolerable band is nearly filled up, whereas TAA ±3.0%p has a bit more room to breathe.Nonetheless, the NPS had to pre-emptively balanced out its investment in domestic stocks in its asset portfolio.







SAA &amp; TAA tolerable bands
SAA (strategic asset allocation)
TAA (tactical asset allocation)


Domestic bonds
±3.5%p
±5.0%p


Overseas bonds
±0.5%p
±1.0%p


Domestic stocks
±2.0%p
±3.0%p


Overseas stocks
±1.0%p
±1.0%p


Alternative
±1.2%p
±1.2%p

Source: Korea NPS



Korea NPS, Domestic Stock Asset Allocation Ratio Change

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/xinyi-solar-holdings-ltd" target="_blank" data-smartkarma-citation="entities:318:1" rel="noopener">Xinyi Solar Holdings (968 HK)</a>, <a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo (992 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> and <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a> while there was short covering 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/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home Co Ltd (6690 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a> and <a href="https://www.smartkarma.com/entities/aia-group-ltd" target="_blank" data-smartkarma-citation="entities:14895:1" rel="noopener">AIA Group Ltd (1299 HK)</a>. Shorts increased in Communication Services, Information Technology and Materials stocks, while decreasing in Utilities, Consumer Staples, Energy, Consumer Discretionary and Health Care stocks.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 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/monex-group-inc" target="_blank" data-smartkarma-citation="entities:14211:1" rel="noopener">Monex Group Inc (8698 JP)</a> and <a href="https://www.smartkarma.com/entities/nihon-m-a-center-inc" target="_blank" data-smartkarma-citation="entities:17616:1" rel="noopener">Nihon M&amp;A Center (2127 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a>, <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>, <a href="https://www.smartkarma.com/entities/itochu-corp" target="_blank" data-smartkarma-citation="entities:18448:1" rel="noopener">Itochu Corp (8001 JP)</a> and <a href="https://www.smartkarma.com/entities/rohm-co-ltd" target="_blank" data-smartkarma-citation="entities:2953:1" rel="noopener">ROHM Co Ltd (6963 JP)</a>. Shorts increased in Consumer Staples, Industrials, Financials and Materials, while shorts covered in the Consumer Discretionary sector.</p></div><div><p>In Korea, short increased on <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a>, <a href="https://www.smartkarma.com/entities/lotte-chemical-corp" target="_blank" data-smartkarma-citation="entities:8757:1" rel="noopener">Lotte Chemical (011170 KS)</a>, <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> 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/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/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a>, <a href="https://www.smartkarma.com/entities/korea-electric-power-corp" target="_blank" data-smartkarma-citation="entities:16:1" rel="noopener">Korea Electric Power (015760 KS)</a> and <a href="https://www.smartkarma.com/entities/lg-display-co-ltd" target="_blank" data-smartkarma-citation="entities:7145:1" rel="noopener">LG Display (034220 KS)</a>. </p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <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/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a>, <a href="https://www.smartkarma.com/entities/fitipower-integrated-tech" target="_blank" data-smartkarma-citation="entities:8712:1" rel="noopener">Fitipower Integrated Tech (4961 TT)</a> and <a href="https://www.smartkarma.com/entities/walsin-technology-corp" target="_blank" data-smartkarma-citation="entities:11084:1" rel="noopener">Walsin Technology (2492 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/taiwan-cement" target="_blank" data-smartkarma-citation="entities:19736:1" rel="noopener">Taiwan Cement (1101 TT)</a>, <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 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> and <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>.</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 Xinyi Solar Holdings (968 HK), Lenovo (992 HK), Ping An Insurance (H) (2318 HK), Kuaishou Technology (1024 HK) and JD Health (6618 HK) while there was short covering on Alibaba Group (9988 HK), Xiaomi Corp (1810 HK), Haier Smart Home Co Ltd (6690 HK), WuXi AppTec Co. Ltd. (2359 HK) and AIA Group Ltd (1299 HK). Shorts increased in Communication Services, Information Technology and Materials stocks, while decreasing in Utilities, Consumer Staples, Energy, Consumer Discretionary and Health Care stocks.In Japan, stocks that saw the most shorts were Seven &amp; I Holdings (3382 JP), Toshiba Corp (6502 JP), Monex Group Inc (8698 JP) and Nihon M&amp;A Center (2127 JP) while shorts decreased on Rakuten Inc (4755 JP), Fast Retailing (9983 JP), Itochu Corp (8001 JP) and ROHM Co Ltd (6963 JP). Shorts increased in Consumer Staples, Industrials, Financials and Materials, while shorts covered in the Consumer Discretionary sector.In Korea, short increased on Doosan Infracore (042670 KS), Lotte Chemical (011170 KS), Posco Chemical Co Ltd (003670 KS) and Hyundai Motor Co (005380 KS) while shorts decreased on SK Hynix (000660 KS), Celltrion Inc (068270 KS), Korea Electric Power (015760 KS) and LG Display (034220 KS). Stocks in Taiwan that saw the highest increase in shorts were TSMC (2330 TT), Pegatron Corp (4938 TT), Fitipower Integrated Tech (4961 TT) and Walsin Technology (2492 TT) while shorts were covered on Taiwan Cement (1101 TT), Evergreen Marine Corp (2603 TT), Innolux Corp (3481 TT) and Richwave Technology (4968 TT).

Asia Short Interest: Kuaishou, JD Health, Xiaomi, 7&I, Monex, Rakuten, Hynix, Hyundai, Fitipower

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Equity Bottom-Up

<p>In an investor confernce call today <a href="https://www.smartkarma.com/entities/micron-technology-inc" target="_blank" data-smartkarma-citation="entities:13382:1" rel="noopener">Micron Technology (MU US)</a> revealed that it would discontinue its 3D XPoint memory efforts and sell the facility that produces it.  Will its sole customer <a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel Corp (INTC US)</a> be undermined by this move?</p>

In an investor confernce call today Micron Technology (MU US) revealed that it would discontinue its 3D XPoint memory efforts and sell the facility that produces it.  Will its sole customer Intel Corp (INTC US) be undermined by this move?

Micron Kills 3D XPoint - Is Intel in Trouble?

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Thematic (Sector/Industry)

<p>This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices. </p><p><strong><em>Companies mentioned this week:</em></strong></p><p><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/new-oriental-education-tech-grp-adr" target="_blank" data-smartkarma-citation="entities:531:1" rel="noopener">New Oriental Education (EDU US)</a>, <a href="https://www.smartkarma.com/entities/tal-education-group" target="_blank" data-smartkarma-citation="entities:1124:1" rel="noopener">TAL Education (TAL US)</a>, <a href="https://www.smartkarma.com/entities/netease" target="_blank" data-smartkarma-citation="entities:29030:1" rel="noopener">NetEase (9999 HK)</a>, <a href="https://www.smartkarma.com/entities/bilibili-inc" target="_blank" data-smartkarma-citation="entities:26793:1" rel="noopener">Bilibili Inc (BILI US)</a>, <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/baidu-inc" target="_blank" data-smartkarma-citation="entities:179:1" rel="noopener">Baidu (BIDU US)</a></p>

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices. Companies mentioned this week:SK Hynix (000660 KS), New Oriental Education (EDU US), TAL Education (TAL US), NetEase (9999 HK), Bilibili Inc (BILI US), Tencent Holdings (700 HK), Baidu (BIDU US)

Global Emerging Markets Weekly: 12 March 2021

South Korea

SK Hynix Inc. provides products and services for the electronic components industry. The Company manufactures semiconductors, such as dynamic random access memory (DRAM), NAND flash memory, and static random access memory (SRAM) chips.

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

SK Hynix (000660 KS)

SK Telecom's CEO Confirms A Major Corporate Governance Reorganization Will Be Completed in 2021

We believe there is a 95%+ probability that SK Telecom announces a major corporate reorganization plan sometime in April/May this year, which...

Douglas Kim

Korea NPS, Domestic Stock Asset Allocation Ratio Change

Korea NPS will likely decide on the local stock allocation ratio (SAA and TAA) to accommodate more local stocks in the portfolio. This post details...

Sanghyun Park

Asia Short Interest: Kuaishou, JD Health, Xiaomi, 7&I, Monex, Rakuten, Hynix, Hyundai, Fitipower

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

Micron Kills 3D XPoint - Is Intel in Trouble?

Will Micron's sudden exit from the 3D XPoint market threaten Intel or Intel's customers? It seems that this will actually be a relatively...

Jim Handy

Global Emerging Markets Weekly: 12 March 2021

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity...

Wium Malan, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)