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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>The review period for the KRX New Deal indices ended on 31 January. The changes will be announced toward the end of February and implemented on 10 March.</li>
<li>We expect <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> to be included in the Battery and BBIG indices, while <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> should be added to the Internet Index.</li>
<li>The largest selling is expected to be on <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a> due to a potential downweight in the Internet index and a deletion from the BBIG index.</li>
</ul>


The review period for the KRX New Deal indices ended on 31 January. The changes will be announced toward the end of February and implemented on 10 March.
We expect LG Energy Solution (373220 KS) to be included in the Battery and BBIG indices, while Kakao Pay (377300 KS) should be added to the Internet Index.
The largest selling is expected to be on Douzone Bizon (012510 KS) due to a potential downweight in the Internet index and a deletion from the BBIG index.


KRX New Deal Index Rebalance Preview (March): More Flow for LG Energy

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.

<ul>
<li>For this March rebalancing, the screening base date is January 28, which is the last trading day of January. So, the 3-month rebalancing review period is now done.</li>
<li>Other than LG Energy (+₩146,2B), we should pay the most attention to AfreecaTV (+1.70x), Chunbo (+0.36x), Douzone Bizon (-4.82x), and SoulBrain (-0.99x).</li>
<li>In addition, large-cap stocks such as SKIET (+0.25x), Ecopro BM (+0.10x), LG Chem (-0.62x), and Posco Chemical (-0.30x) will likely draw much attention.</li>
</ul>


For this March rebalancing, the screening base date is January 28, which is the last trading day of January. So, the 3-month rebalancing review period is now done.
Other than LG Energy (+₩146,2B), we should pay the most attention to AfreecaTV (+1.70x), Chunbo (+0.36x), Douzone Bizon (-4.82x), and SoulBrain (-0.99x).
In addition, large-cap stocks such as SKIET (+0.25x), Ecopro BM (+0.10x), LG Chem (-0.62x), and Posco Chemical (-0.30x) will likely draw much attention.


KRX K-New Deal Index Screening Period Ended: Rebalancing Changes & Passive Impacts Update

<ul>
<li>These indices use the GICS for classification. Bio and Internet are very straightforward. But qualitative judgment may be involved in Battery and Game.
</li>
<li>The passive impact of SoulBrain is estimated to be the largest, and LG Chem wouldn't be negligible either.</li>
<li>If AfreecaTV and Douzon Bizon are swapped, they will experience an impact of +2.0x ADTV and -5.0x ADTV. So they will shine the most if the swap takes place.</li>
</ul>


These indices use the GICS for classification. Bio and Internet are very straightforward. But qualitative judgment may be involved in Battery and Game.

The passive impact of SoulBrain is estimated to be the largest, and LG Chem wouldn't be negligible either.
If AfreecaTV and Douzon Bizon are swapped, they will experience an impact of +2.0x ADTV and -5.0x ADTV. So they will shine the most if the swap takes place.


KRX K-New Deal Index Rebalancing: Detailed Methodology & Changes Preview

<ul>
<li>The review period for the March rebalance ends on 31 January, the announcement of the changes will be end February/beginning March, implementation will be at the close on 10 March.</li>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> will be included in the Battery index, and there will be other changes to the Bio, Internet, Game and BBIG indices.</li>
<li>The largest selling is expected to be on <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a> due to a potential downweight in the Internet index and a deletion from the BBIG index.</li>
</ul>


The review period for the March rebalance ends on 31 January, the announcement of the changes will be end February/beginning March, implementation will be at the close on 10 March.

LG Energy Solution (LGENERGY KS) will be included in the Battery index, and there will be other changes to the Bio, Internet, Game and BBIG indices.
The largest selling is expected to be on Douzone Bizon (012510 KS) due to a potential downweight in the Internet index and a deletion from the BBIG index.


KRX BBIG Index Rebalance Preview (March): LG Energy Should Be Added; Plus Other Changes

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

It was announced on 15 October that a consortium led by <a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (259960 KS)</a> plans to purchase a large property in Seoul for more than<a href="https://moneys.mt.co.kr/news/mwView.php?no=2021101517518088669" target="_blank" rel="noopener"> 1 trillion won. </a>CBRE is the advisory firm in this sale. The Krafton-Mirae Asset Managment consortium has been selected as the preferred bidder for this property located in Seongsu-dong, Seoul (currently owned by <a href="https://www.smartkarma.com/entities/e-mart-inc" target="_blank" data-smartkarma-citation="entities:6993:1" rel="noopener">E Mart Inc (139480 KS).</a> Krafton and Emart are expected to sign a MOU for this deal next week.<div class="content-highlight">We believe that Krafton purchasing a large piece of property in Seoul is likely to have a negative impact on its share price. Although Krafton is a cash rich company with nearly 4.5 trillion won in net cash post the IPO, it may need to spend about 500 billion won to 750 billion won in investment in this large property in Seong-su dong, Seoul. Many investors will not like this deal as they would rather have Krafton invest in its core gaming business (internally or through acquisitions).</div>

It was announced on 15 October that a consortium led by  Krafton Inc (259960 KS) plans to purchase a large property in Seoul for more than 1 trillion won. CBRE is the advisory firm in this sale. The Krafton-Mirae Asset Managment consortium has been selected as the preferred bidder for this property located in Seongsu-dong, Seoul (currently owned by E Mart Inc (139480 KS). Krafton and Emart are expected to sign a MOU for this deal next week.We believe that Krafton purchasing a large piece of property in Seoul is likely to have a negative impact on its share price. Although Krafton is a cash rich company with nearly 4.5 trillion won in net cash post the IPO, it may need to spend about 500 billion won to 750 billion won in investment in this large property in Seong-su dong, Seoul. Many investors will not like this deal as they would rather have Krafton invest in its core gaming business (internally or through acquisitions).

Krafton Consortium Plans to Buy a Large Property in Seoul from Emart for More than 1 Trillion Won

South Korea

Douzone Bizon Co., Ltd. develops and markets computer software.  The company develops MIS, ERP, e-Business Solutions, EFIS, SEM(Strategic Enterprise Management), BPS(Business Process Management), and ERM(Enterprise Risk Management). The Company's products target small and medium-sized enterprises.

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Douzone Bizon (012510 KS)

KRX New Deal Index Rebalance Preview (March): More Flow for LG Energy

There are many changes to the KRX New Deal indices at the March rebal. The largest inflow is on LG Energy. The largest buying impact is on...

Brian Freitas

KRX K-New Deal Index Screening Period Ended: Rebalancing Changes & Passive Impacts Update

The KRX K-New Deal Index's screening period ended last Friday. This post updates the screening results and passive impacts.

Sanghyun Park

KRX K-New Deal Index Rebalancing: Detailed Methodology & Changes Preview

This post details the full methodology of the KRX K-New Deal Index Rebalancing and previews likely changes in the upcoming rebalancing.

Sanghyun Park

KRX BBIG Index Rebalance Preview (March): LG Energy Should Be Added; Plus Other Changes

LG Energy should be added to the Secondary Battery and BBIG indices. There are changes to the Bio, Internet and Game indices too. Douzone Bizon...

Brian Freitas

Krafton Consortium Plans to Buy a Large Property in Seoul from Emart for More than 1 Trillion Won

We believe that Krafton purchasing a large piece of property in Seoul is likely to have a negative impact on its share price.

Douglas Kim

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