Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>According to our NAV analysis, it suggests a base case valuation of 70,272 won per share for HD Hyundai, representing a 23% upside from current levels.</li>
<li>The expected dividend yield of HD Hyundai in 2023 is 7.8% which is attractive.</li>
<li>Hyundai Oilbank generated record results in the past year and this has been a key boost to the NAV of HD Hyundai. </li>
</ul>


According to our NAV analysis, it suggests a base case valuation of 70,272 won per share for HD Hyundai, representing a 23% upside from current levels.
The expected dividend yield of HD Hyundai in 2023 is 7.8% which is attractive.
Hyundai Oilbank generated record results in the past year and this has been a key boost to the NAV of HD Hyundai. 


HD Hyundai: NAV Boost From Record Results At Hyundai Oilbank + High Dividend Yield

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

<ul>
<li>We'd better pay attention to trading for price gain by building a position 2-3 weeks towards ex-dividend and getting out of it before ex-dividend, which often provides higher returns.</li>
<li>For this, we should focus on high dividend yield stocks, which also feature a high borrow rate, but on a decreasing trend.</li>
<li>They are <strong><a href="https://www.smartkarma.com/entities/hyosung-tnc-co-ltd" target="_blank" data-smartkarma-citation="entities:27749:1" rel="noopener">Hyosung TNC (298020)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/hd-hyundai" target="_blank" data-smartkarma-citation="entities:24075:1" rel="noopener">HD Hyundai (267250)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/bnk-financial-group-inc" target="_blank" data-smartkarma-citation="entities:386:1" rel="noopener">BNK Financial (138930)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/woori-financial-group-inc" target="_blank" data-smartkarma-citation="entities:27995:1" rel="noopener">Woori Financial (316140)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/dl-e-c-co-ltd" target="_blank" data-smartkarma-citation="entities:31375:1" rel="noopener">DL E&amp;C (375500)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/lx-semicon-co-ltd" target="_blank" data-smartkarma-citation="entities:20670:1" rel="noopener">LX Semicon (108320)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/kb-financial-group-inc" target="_blank" data-smartkarma-citation="entities:718:1" rel="noopener">KB Financial (105560 KS)</a></strong>, and <strong><a href="https://www.smartkarma.com/entities/hdc-hyundai-development-co-engineering-construction" target="_blank" data-smartkarma-citation="entities:27397:1" rel="noopener">HDC Hyundai Development (294870)</a></strong>.        </li>
</ul>


We'd better pay attention to trading for price gain by building a position 2-3 weeks towards ex-dividend and getting out of it before ex-dividend, which often provides higher returns.
For this, we should focus on high dividend yield stocks, which also feature a high borrow rate, but on a decreasing trend.
They are Hyosung TNC (298020), HD Hyundai (267250), BNK Financial (138930), Woori Financial (316140), DL E&amp;C (375500), LX Semicon (108320), KB Financial (105560 KS), and HDC Hyundai Development (294870).        


Yearend Dividend Play on Korean Stocks with High Yield/Borrow Rate

Equity Capital Markets

Hyundai Oilbank Co Ltd / Equity Capital Markets

<ul>
<li>Hyundai Oilbank is getting ready to complete its IPO as early as June 2022, which would make it one of the largest IPOs in Korea this year.</li>
<li>Local media have mentioned that the value of Hyundai Oilbank could be as high as 10 trillion won post IPO. </li>
<li>Our NAV analysis suggests a base case valuation of 69,231 won per share for HD Hyundai (formerly Hyundai Heavy Industries Holdings), representing a 21% upside from current levels. </li>
</ul>


Hyundai Oilbank is getting ready to complete its IPO as early as June 2022, which would make it one of the largest IPOs in Korea this year.
Local media have mentioned that the value of Hyundai Oilbank could be as high as 10 trillion won post IPO. 
Our NAV analysis suggests a base case valuation of 69,231 won per share for HD Hyundai (formerly Hyundai Heavy Industries Holdings), representing a 21% upside from current levels. 


Hyundai Oilbank: Getting Ready for an IPO as Early as June 2022

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

HD Hyundai Heavy Industries  / Equity Capital Markets

<ul>
<li>Hyundai Heavy Industries (HHI) was listed on Korea Exchange on 17th September, 2021. Its six month IPO lock-up will expire on 17th March, 2022.</li>
<li>Hyundai Heavy Industries (HHI) is a South Korean shipbuilder. The company is majority owned by Korea Shipbuilding &amp; Offshore Engineering (009540 KS) after the latter’s spin-off in 2019.</li>
<li>In this note, we will talk about the upcoming lock-up expiry, along with recent updates.</li>
</ul>


Hyundai Heavy Industries (HHI) was listed on Korea Exchange on 17th September, 2021. Its six month IPO lock-up will expire on 17th March, 2022.
Hyundai Heavy Industries (HHI) is a South Korean shipbuilder. The company is majority owned by Korea Shipbuilding &amp; Offshore Engineering (009540 KS) after the latter’s spin-off in 2019.
In this note, we will talk about the upcoming lock-up expiry, along with recent updates.


Hyundai Heavy IPO Lock-Up - Last of the Insti Lock-Ups, Parent’s Shares Out of Lock-Up as Well

HD Hyundai Heavy Industries  / Event-Driven

<p>Hyundai Heavy Industries' 15-trading day review period ended last Thursday, and the KRX officially announced that it would add Hyundai Heavy to the following KRX indexes. </p><div class="content-highlight"><ul>
<li>KRX 100 (equal-weighted):  Studio Dragon (25345) will be deleted.</li>
<li>KRX Sector (Machinery &amp; Equipment). No delete</li>
<li>The effective date for both indexes is December 10.</li>
</ul></div><p>As for KOSPI 200 Fast Entry, KRX said that Hyundai Heavy Industries' KOSPI 200 Fast Entry is currently under review. Its decision will be included in the notice of the December regular rebalancing results.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/235/523/original/2.png?1634401666" class="editor-image img-responsive" data-smartkarma-image-id="235523"></figure></section><p>Below is the average daily market cap of the KOSPI large-cap ordinary stocks during the 15-trading day review period from September 17 to October 14. Hyundai Heavy Industries ranks in 42nd place, making it eligible to join KOSPI 200 through Fast Entry.</p><div class="content-highlight"><p><strong>The rule is straightforward. If Hyundai Heavy stays within the top 50 by the average daily market cap among the KOSPI ordinary stocks for 15 trading days from listing, it will join KOSPI 200 through Fast Entry. So, its Fast Entry should be seen as a done deal.</strong></p></div><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/235/524/original/1.png?1634402056" class="editor-image img-responsive" data-smartkarma-image-id="235524"></figure></section>

Hyundai Heavy Industries' 15-trading day review period ended last Thursday, and the KRX officially announced that it would add Hyundai Heavy to the following KRX indexes. 
KRX 100 (equal-weighted):  Studio Dragon (25345) will be deleted.
KRX Sector (Machinery &amp; Equipment). No delete
The effective date for both indexes is December 10.
As for KOSPI 200 Fast Entry, KRX said that Hyundai Heavy Industries' KOSPI 200 Fast Entry is currently under review. Its decision will be included in the notice of the December regular rebalancing results.Below is the average daily market cap of the KOSPI large-cap ordinary stocks during the 15-trading day review period from September 17 to October 14. Hyundai Heavy Industries ranks in 42nd place, making it eligible to join KOSPI 200 through Fast Entry.The rule is straightforward. If Hyundai Heavy stays within the top 50 by the average daily market cap among the KOSPI ordinary stocks for 15 trading days from listing, it will join KOSPI 200 through Fast Entry. So, its Fast Entry should be seen as a done deal.

KRX Made It Clear that Hyundai Heavy KOSPI 200 Fast Entry Inclusion Would Be December 10

South Korea

HD Hyundai Co.,Ltd. operates as a oil refining company. The Company provides crude oil refining, petroleum refinery, and other related products. HD Hyundai markets its products worldwide.

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HD Hyundai (267250 KS)

HD Hyundai: NAV Boost From Record Results At Hyundai Oilbank + High Dividend Yield

Hyundai Oilbank generated record results in the past year and this has been a key boost to the NAV of HD Hyundai. The expected dividend yield of HD...

Douglas Kim

Yearend Dividend Play on Korean Stocks with High Yield/Borrow Rate

This post discusses the yearend dividend play on Korean stocks with a high dividend yield and a high borrow rate on a decreasing trend.

Sanghyun Park

Hyundai Oilbank: Getting Ready for an IPO as Early as June 2022

Hyundai Oilbank is getting ready to complete its IPO as early as June 2022, which would make it one of the largest IPOs in Korea this year.

Douglas Kim

Hyundai Heavy IPO Lock-Up - Last of the Insti Lock-Ups, Parent’s Shares Out of Lock-Up as Well

Hyundai Heavy Industries (HHI) was listed on Korea Exchange on 17th September, 2021. Its six month IPO lock-up will expire on 17th March, 2022.

Sumeet Singh

KRX Made It Clear that Hyundai Heavy KOSPI 200 Fast Entry Inclusion Would Be December 10

The KRX made it clear in its official disclosure that the effective date of the Hyundai Heavy Industries' KOSPI 200 Fast Entry would be December 10.

Sanghyun Park

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