Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<div class="content-highlight"><p><a href="https://www.smartkarma.com/entities/kia-motors-corp" target="_blank" data-smartkarma-citation="entities:156:1" rel="noopener">Kia Motors Corp (000270 KS)</a> shares increased 9.7% on 3 February to 97,700 won. Kia Motor's stock price has risen 57% YTD. Kia Motors' market share has climbed to 39.6 trillion won ($35.6 billion).<strong> It has been reported in the local media that <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple Inc (AAPL US)</a> plans to invest 4 trillion won ($3.6 billion) as a part of a collaboration with Kia Motors on making electric vehicles. </strong></p></div>

Kia Motors Corp (000270 KS) shares increased 9.7% on 3 February to 97,700 won. Kia Motor's stock price has risen 57% YTD. Kia Motors' market share has climbed to 39.6 trillion won ($35.6 billion). It has been reported in the local media that Apple Inc (AAPL US) plans to invest 4 trillion won ($3.6 billion) as a part of a collaboration with Kia Motors on making electric vehicles. 

Apple to Invest $3.6 Billion in Kia Motors: HMC Group Has Come a Long Way from the Sir Charles Ads

Cross Asset Strategy

<p>One of the most important developments arising in Korea is the potential <strong>amendment of the</strong><strong><a href="https://n.news.naver.com/article/009/0004680246?cds=news_edit" target="_blank" rel="noopener">Fair Trade Act</a>,</strong> especially on the clause involving (일감몰아주기), which includes taking strict actions against excessive intra-affiliate transactions among large business groups. </p>
<div class="content-highlight">
<p>Overall, it appears that the potential changes to the Fair Trade Act could be very disruptive for so many top Korean companies. Plus, although the incumbent party (Democratic Party of Korea) has a lot of power in the National Assembly, it remains uncertain whether the government will actually be able to make the amendments since the changes in regulations could be so burdensome on so many top business groups in Korea. In addition, even if they pass the amendments, it is not all sure if the controlling shareholders will reduce their ownership in their companies. </p>
</div>

One of the most important developments arising in Korea is the potential amendment of theFair Trade Act, especially on the clause involving (일감몰아주기), which includes taking strict actions against excessive intra-affiliate transactions among large business groups. 

Overall, it appears that the potential changes to the Fair Trade Act could be very disruptive for so many top Korean companies. Plus, although the incumbent party (Democratic Party of Korea) has a lot of power in the National Assembly, it remains uncertain whether the government will actually be able to make the amendments since the changes in regulations could be so burdensome on so many top business groups in Korea. In addition, even if they pass the amendments, it is not all sure if the controlling shareholders will reduce their ownership in their companies. 


Will SK Holdings Required to Sell a 25% Stake in SK Biopharm Due to Changes in the Fair Trade Act?

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

<p>It seems that the Glovis/Mobis pair's ongoing diversion wouldn't stop here. This morning, Glovis is again up 5%, whereas Mobis isn't moving anywhere.</p><p>On a 20D MA, the duo is pretty much at +3σ favoring Glovis.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"% of sigma"}'>% of sigma</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Today"}'>Today</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.79721147999682}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">279.72%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-1"}'>T-1</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.90408093225351}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">290.41%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-2"}'>T-2</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3.040840873644037}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">304.08%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-3"}'>T-3</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.181493534187003}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">218.15%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-4"}'>T-4</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.858730552874526}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">285.87%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-5"}'>T-5</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.2348493042227517}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">123.48%</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/165/349/original/chart.png?1602726889" class="editor-image img-responsive" data-smartkarma-image-id="165349"></figure></section><p>Price ratio-wise, Glovis is practically sitting at the 2-yr peak over Mobis, up 23% from the median.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="150">
<col width="150">
</colgroup>
<tbody>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Price ratio"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Price ratio</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Today"}'>Today</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7607758620689655}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-21]C[1]">0.76078</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"20D MA"}'>20D MA</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6404340532612001}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-22]C[2]">0.64043</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"σ"}'>σ</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.04302206310403898}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-23]C[5]">0.04302</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"+1 σ"}' data-sheets-formula='="+1 σ"'>+1 σ</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6834561163652391}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-24]C[3]">0.68346</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"-1 σ"}' data-sheets-formula='="-1 σ"'>-1 σ</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5974119901571611}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-25]C[4]">0.59741</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D mean"}'>120D mean</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5756111894671158}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=average(Data!R2C3:R100C3)">0.57561</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.321683587793472}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">32.17%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D median"}'>120D median</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5641025641025641}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MEDIAN(Data!R2C3:R100C3)">0.56410</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.34864811912225707}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">34.86%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D high"}'>120D high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7607758620689655}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MAX(Data!R2C3:R100C3)">0.76078</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">0.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D low"}'>120D low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5127610208816705}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MIN(Data!R2C3:R100C3)">0.51276</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.483685052270245}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">48.37%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y mean"}'>1Y mean</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5837054277414029}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=average(Data!R2C3:R248C3)">0.58371</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.30335581255894983}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">30.34%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y median"}'>1Y median</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5833333333333334}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MEDIAN(Data!R2C3:R248C3)">0.58333</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.30418719211822653}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">30.42%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y high"}'>1Y high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7607758620689655}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MAX(Data!R2C3:R248C3)">0.76078</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">0.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y low"}'>1Y low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5127610208816705}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MIN(Data!R2C3:R248C3)">0.51276</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.483685052270245}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">48.37%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y mean"}'>2Y mean</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6205364418447589}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=average(Data!R2C3:R476C3)">0.62054</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.22599707409172706}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">22.60%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y median"}'>2Y median</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6187363834422658}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MEDIAN(Data!R2C3:R476C3)">0.61874</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.22956380524526473}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">22.96%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y high"}'>2Y high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7777777777777778}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MAX(Data!R2C3:R476C3)">0.77778</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.021859605911330054}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">-2.19%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y low"}'>2Y low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5127610208816705}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MIN(Data!R2C3:R476C3)">0.51276</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.483685052270245}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">48.37%</td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>Glovis and Mobis are the most correlated stocks among the HMG subsidiaries despite the recent diversion (30D correlation coefficient at 0.36).</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="150">
<col width="150">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Correlation"}'>Correlation</td>
<td style="text-align: center;" data-sheets-value='{"1":2,"2":"Component 1"}'>Component 1</td>
<td style="text-align: center;" data-sheets-value='{"1":2,"2":"Component 2"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Component 2</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: center;" data-sheets-value='{"1":2,"2":"Hyundai Glovis Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Hyundai Glovis Co Ltd</td>
<td style="text-align: center;" data-sheets-value='{"1":2,"2":"HYUNDAI MOBIS CO., LTD."}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>HYUNDAI MOBIS CO., LTD.</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: center;" data-sheets-value='{"1":2,"2":"086280"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='="086280"'>086280</td>
<td style="text-align: center;" data-sheets-value='{"1":2,"2":"012330"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='="012330"'>012330</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Market cap (₩B)"}'>Market cap (₩B)</td>
<td style="text-align: center;" data-sheets-value='{"1":3,"3":6318.75}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula='=googlefinance(R[-1]C[0], "shares")*googlefinance(R[-1]C[0], "price")/1000000000'>6,318.8</td>
<td style="text-align: center;" data-sheets-value='{"1":3,"3":22005.161661}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula='=googlefinance(R[-1]C[0], "shares")*googlefinance(R[-1]C[0], "price")/1000000000'>22,005.2</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y"}'>2Y</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":0.831919620239351}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=correl(PR!R[-3]C[7]:R[489]C[7], PR!R[-3]C[8]:R[489]C[8])">0.83192</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y"}'>1Y</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":0.9318592319326688}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=correl(PR!R[261]C[7]:R[488]C[7], PR!R[261]C[8]:R[488]C[8])">0.93186</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"180D"}'>180D</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":0.9199477136645406}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=correl(PR!R[308]C[7]:R[487]C[7], PR!R[308]C[8]:R[487]C[8])">0.91995</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D"}'>120D</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":0.8692936956427101}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=correl(PR!R[367]C[7]:R[486]C[7], PR!R[367]C[8]:R[486]C[8])">0.86929</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"90D"}'>90D</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":0.8637633940567214}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=correl(PR!R[396]C[7]:R[485]C[7], PR!R[396]C[8]:R[485]C[8])">0.86376</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"30D"}'>30D</td>
<td colspan="2" rowspan="1" style="text-align: center;" data-sheets-value='{"1":3,"3":0.3569896000118052}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=correl(PR!R[455]C[7]:R[484]C[7], PR!R[455]C[8]:R[484]C[8])">0.35699</td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Source: KRX</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="300">
<col width="150">
<col width="150">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Liquidity (₩B)"}'>Liquidity (₩B)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Hyundai Glovis Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-58]C[0]">Hyundai Glovis Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"HYUNDAI MOBIS CO., LTD."}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula="=R[-58]C[0]">HYUNDAI MOBIS CO., LTD.</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"MC"}'>MC</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6318.75}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula='=googlefinance(R[-58]C[0], "price")*googlefinance(R[-58]C[0], "shares")/1000000000'>6,318.8</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":22005.161661}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula='=googlefinance(R[-58]C[0], "price")*googlefinance(R[-58]C[0], "shares")/1000000000'>22,005.2</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Avg. DTV"}'>Avg. DTV</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":211359}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula='=googlefinance(R[-59]C[0], "volumeavg")'>211,359</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":428067}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula='=googlefinance(R[-59]C[0], "volumeavg")'>428,067</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Value"}'>- Value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":35.6139915}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula='=R[-1]C[0]*googlefinance(R[-60]C[0], "price")/1000000000'>35.6</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":99.0975105}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula='=R[-1]C[0]*googlefinance(R[-60]C[0], "price")/1000000000'>99.1</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of SO"}'>- % of SO</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.00563624}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-2]C[0]/googlefinance(R[-61]C[0], "shares")'>0.56%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.004503375709146989}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-2]C[0]/googlefinance(R[-61]C[0], "shares")'>0.45%</td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

It seems that the Glovis/Mobis pair's ongoing diversion wouldn't stop here. This morning, Glovis is again up 5%, whereas Mobis isn't moving anywhere.On a 20D MA, the duo is pretty much at +3σ favoring Glovis.





% of sigma

Today
279.72%


T-1
290.41%


T-2
304.08%


T-3
218.15%


T-4
285.87%


T-5
123.48%

Source: KRX

Price ratio-wise, Glovis is practically sitting at the 2-yr peak over Mobis, up 23% from the median.






Price ratio

Today
0.76078
-


20D MA
0.64043
-


σ
0.04302
-


+1 σ
0.68346
-


-1 σ
0.59741
-


120D mean
0.57561
32.17%


120D median
0.56410
34.86%


120D high
0.76078
0.00%


120D low
0.51276
48.37%


1Y mean
0.58371
30.34%


1Y median
0.58333
30.42%


1Y high
0.76078
0.00%


1Y low
0.51276
48.37%


2Y mean
0.62054
22.60%


2Y median
0.61874
22.96%


2Y high
0.77778
-2.19%


2Y low
0.51276
48.37%

Source: KRX

Glovis and Mobis are the most correlated stocks among the HMG subsidiaries despite the recent diversion (30D correlation coefficient at 0.36).







Correlation
Component 1
Component 2


Name
Hyundai Glovis Co Ltd
HYUNDAI MOBIS CO., LTD.


Ticker
086280
012330


Market cap (₩B)
6,318.8
22,005.2


2Y
0.83192


1Y
0.93186


180D
0.91995


120D
0.86929


90D
0.86376


30D
0.35699

Source: KRX









Liquidity (₩B)
Hyundai Glovis Co Ltd
HYUNDAI MOBIS CO., LTD.


MC
6,318.8
22,005.2


Avg. DTV
211,359
428,067


- Value
35.6
99.1


- % of SO
0.56%
0.45%

Source: KRX



Glovis/Mobis Diversion Is Reaching an Extreme for Three Reasons: Time to Trade on Reversion

Hyundai Mobis resumes buyback starting today (October 5).Mobis announced the 3-year shareholder return plan from 2019 to 2021, including a ₩1T buyback and ₩1.1T dividends.This time, the target is 0.96M ordinary shares, a bit less than the last one (1.3M shares for ₩323B). It represents 1.03% of the SO. At the previous close, it amounts to ₩226B, of which 28% will get canceled.The lock-up of the remaining bought-back shares is six months.It is the second buyback since the announcement. So, we will have one or two more buybacks by the end of 2021 for the remaining ₩450B to hit the ₩1T target.





Overview

Name
HYUNDAI MOBIS CO., LTD.


Ticker
012330


Shares outstanding
95,058,668


- Common
95,054,694


- Pref
3,974


Treasury shares
1,617,535


- Common
1,617,535


- Pref
0


Target qty.
983,000


- % of SO
1.03%


- Common
983,000


- % of total common shares
1.03%


- % of common treasury shares
60.77%


- Pref
0


- % of total pref shares
-


- % of pref treasury shares
-


Treasury shares after buyback
2,600,535


- % of SO
2.74%


- % of common
2.74%


- % of pref
-


Total value
₩226,090,000,000


- Common
₩226,090,000,000


- Pref
₩0


Market cap
₩21,863,493,640,000


- % of market cap
1.03%


Equity
₩23,500,426,547,075


- % of equity
0.96%


Cancellation
₩62,500,000,000


- % of total buyback
27.64%


- Qty.
271,739


Lock up for the remaining
Six months

Source: DART

The execution is until December 28, which gives us a total of 60 trading days.The daily limit is 130,000, a quarter of the 1M ADT, 11% of the target, and 0.1% of the SO.If it buys an equal quantity each day, 16K will be the number, representing 3.7% of the DTV.Hyundai Motor Securities will execute the trading, and it will buy all shares openly in the market.






Execution

Buyback begins
2020. 10. 5


Buyback ends
2020. 12. 28


Bankers
Hyundai Motor Securities


Method
Openly in the market (no off-hours block trade)


Daily limit
110,050


- % of 1M DTV
25.00%


- % of target qty.
11.20%


- % of the total common shares
0.12%


Number of trading days
60


Average daily equal buyback qty.
16,383


- % of 1M DTV
3.71%


- % of target qty.
1.67%


- % of the total common shares
0.02%


Value of average daily equal buyback qty.
₩3,768,166,667


Market cap
₩21,863,493,640,000


ADTV
₩101,511,420,000

Source: DART &amp; Google Finance


The treasury shares now account for 1.7%. The buyback/cancellation will put it at 2.5% of the SO. The major shareholders' stake will rise to 31.3% after the cancellation.








Shareholding
Before
After


Kia Motors Corporation
17.28%
17.33%


Chung Mong-koo
7.13%
7.15%


Hyundai Steel Co
5.79%
5.81%


Hyundai Glovis Co Ltd
0.69%
0.69%


Chung Eui-sun
0.32%
0.32%


- Major shareholder
31.22%
31.31%


Korea NPS
11.90%
11.93%


Mirae Asset
5.08%
5.10%


Treasury shares
1.70%
2.46%

Source: DART &amp; FnGuide



Hyundai Mobis Share Buyback: Terms & Trading Dynamics

<p>Hyundai Motor stocks are again moving up.</p><p>As of noon in the local time, Hyundai Motor's ordinary share is up 3.49%, followed by all three preferred shares whose gains range from 3.34% (1P) to 6.20% (3PB).</p><p>Also, Kia is up 1.52%, and Mobis moves up by 2.21%.</p><p>Glovis is gaining the most, among the subsidiaries, with 4.15%.</p><p><strong>Then, sigma on a 20D MA?</strong></p><p>Everyone seems to be within a controllable range relative to the Motor ordinary share.</p><p><strong>But the Glovis/Mobis pair is in a substantial diversion at a 2.42σ favoring Glovis.</strong></p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/156/057/original/12.png?1598843388" class="editor-image img-responsive" data-smartkarma-image-id="156057"></figure>

Hyundai Motor stocks are again moving up.As of noon in the local time, Hyundai Motor's ordinary share is up 3.49%, followed by all three preferred shares whose gains range from 3.34% (1P) to 6.20% (3PB).Also, Kia is up 1.52%, and Mobis moves up by 2.21%.Glovis is gaining the most, among the subsidiaries, with 4.15%.Then, sigma on a 20D MA?Everyone seems to be within a controllable range relative to the Motor ordinary share.But the Glovis/Mobis pair is in a substantial diversion at a 2.42σ favoring Glovis.

Hyundai Motor Stocks Moving: Trade Glovis/Mobis Pair

South Korea

Hyundai Glovis Co., Ltd. provides domestic and international logistic services. The Company's services include domestic transportation, storage, packaging, vehicle logistic, and logistic consulting.  GLOVIS also runs automobile auction market for used vehicle.

Price Gauge
52-week Range	0.00 - 0.00
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Hyundai Glovis (086280 KS)

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Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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