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>KT’s foreign room is likely staying below 3.75% for November, setting up an ETF recall play. We've seen short-term buying pressure in similar past index reshuffles.</li>
<li>The ETF recall impact peaks right after the announcement. KT’s May downweight saw a 5% spike in two trading days post-announcement.</li>
<li>KT’s price moves more with downweights than SK Telecom’s because of higher overseas borrowing demand. This trend should hold, so setting up a position before the November announcement makes sense.</li>
</ul>


KT’s foreign room is likely staying below 3.75% for November, setting up an ETF recall play. We've seen short-term buying pressure in similar past index reshuffles.
The ETF recall impact peaks right after the announcement. KT’s May downweight saw a 5% spike in two trading days post-announcement.
KT’s price moves more with downweights than SK Telecom’s because of higher overseas borrowing demand. This trend should hold, so setting up a position before the November announcement makes sense.


Timing a Trade to Capitalize on KT’s November Global Index Deletion and the ETF Recall

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Sep 6th which has an aggregated holding worth USD545.5bn.</li>
<li>We estimate that foreign flows to be outflows of USD1,276mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Samsung Electronics, Sk Hynix, Kia Corp..</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Sep 6th which has an aggregated holding worth USD545.5bn.
We estimate that foreign flows to be outflows of USD1,276mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Samsung Electronics, Sk Hynix, Kia Corp..


KRX Foreign Holding Weekly (Sep 6th): Samsung Electronics, Sk Hynix, Kia Corp.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>In this insight, we compare the outstanding shares changes in the Korean stock market (KOSPI and KOSDAQ) relative to M7 (Magnificent 7) companies. </li>
<li>In Korea, there are more companies such as Samsung C&amp;T, KB Financial, and KT&amp;G that are actively reducing their outstanding shares and investors are rewarding them with higher share prices.</li>
<li>Top 10 companies in KOSPI that reduced their outstanding shares (from end of 2019 to 5 Sept 24) experienced average share price increase of 116% on average in this period.</li>
</ul>


In this insight, we compare the outstanding shares changes in the Korean stock market (KOSPI and KOSDAQ) relative to M7 (Magnificent 7) companies. 
In Korea, there are more companies such as Samsung C&amp;T, KB Financial, and KT&amp;G that are actively reducing their outstanding shares and investors are rewarding them with higher share prices.
Top 10 companies in KOSPI that reduced their outstanding shares (from end of 2019 to 5 Sept 24) experienced average share price increase of 116% on average in this period.


Corporate Value Up in Korea - Focus On Reducing Outstanding Shares and Comparison to M7

Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hyundai-motor-india-ltd" target="_blank" data-smartkarma-citation="entities:40900:1" rel="noopener">Hyundai Motor India</a> reported an 8% decline in monthly dispatch volumes ahead of India's festive season, coinciding with a sharp increase in shipments by competitors in the SUV space.</li>
<li>
<a href="https://www.smartkarma.com/entities/mahindra-mahindra-ltd" target="_blank" data-smartkarma-citation="entities:16441:1" rel="noopener">Mahindra &amp; Mahindra (MM IN)</a> , Toyota Kirloskar Motor ( <a href="https://www.smartkarma.com/entities/toyota-motor-corp" target="_blank" data-smartkarma-citation="entities:73:1" rel="noopener">Toyota Motor (7203 JP)</a> JV), and <a href="https://www.smartkarma.com/entities/kia-corp" target="_blank" data-smartkarma-citation="entities:156:1" rel="noopener">Kia Corp (000270 KS)</a> each posted high double-digit volume growth in August.</li>
<li>Overall, India's domestic Passenger Vehicle sales growth for the April-August period has slowed year-on-year after two years of strong post-COVID momentum.</li>
</ul>



Hyundai Motor India reported an 8% decline in monthly dispatch volumes ahead of India's festive season, coinciding with a sharp increase in shipments by competitors in the SUV space.

Mahindra &amp; Mahindra (MM IN) , Toyota Kirloskar Motor ( Toyota Motor (7203 JP) JV), and Kia Corp (000270 KS) each posted high double-digit volume growth in August.
Overall, India's domestic Passenger Vehicle sales growth for the April-August period has slowed year-on-year after two years of strong post-COVID momentum.


Hyundai Motor India: Feeling the Heat as SUV Rivals Surge

<ul>
<li>We provide an updated NAV analysis of Samsung C&amp;T, discuss the reduced overhang post final Lee family inheritance tax payment, and also provide further details of its Corporate Value-Up announcement. </li>
<li>Given 2025 will be the last year of major inheritance tax payment for the Lee family, there is likely to be reduced overhang associated with inheritance tax issue next year.</li>
<li>Our NAV analysis of Samsung C&amp;T suggests NAV of 39.9 trillion won or NAV per share of 224,249 won which is 45% higher from current levels.</li>
</ul>


We provide an updated NAV analysis of Samsung C&amp;T, discuss the reduced overhang post final Lee family inheritance tax payment, and also provide further details of its Corporate Value-Up announcement. 
Given 2025 will be the last year of major inheritance tax payment for the Lee family, there is likely to be reduced overhang associated with inheritance tax issue next year.
Our NAV analysis of Samsung C&amp;T suggests NAV of 39.9 trillion won or NAV per share of 224,249 won which is 45% higher from current levels.


Samsung C&T: Corporate Value-Up + Reduced Overhang Post Final Lee Family Inheritance Tax in 2025

South Korea

Hyundai Motor Company manufactures, sells, and exports passenger cars, trucks, and commercial vehicles. The Company also sells various auto parts and operates auto repair service centers throughout South Korea. Hyundai Motor provides financial services through its subsidiaries.

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Hyundai Motor (005387 KS)

Timing a Trade to Capitalize on KT’s November Global Index Deletion and the ETF Recall

This post discusses the high likelihood of KT being booted from the November Global Index review due to its foreign room staying below 3.75%, and...

Sanghyun Park

KRX Foreign Holding Weekly (Sep 6th): Samsung Electronics, Sk Hynix, Kia Corp.

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Samsung Electronics, Sk Hynix, Kia Corp..

Ke Yan, CFA, FRM

Corporate Value Up in Korea - Focus On Reducing Outstanding Shares and Comparison to M7

Top 10 companies in KOSPI (ranked by market cap) that reduced their outstanding shares (from end of 2019 to 5 Sept 24) experienced average share...

Douglas Kim

Hyundai Motor India: Feeling the Heat as SUV Rivals Surge

Intensifying competition in the SUV segment and sluggish demand in the hatchback segment has led to slowing sales volumes YTD. Market response to...

Devi Subhakesan

Samsung C&T: Corporate Value-Up + Reduced Overhang Post Final Lee Family Inheritance Tax in 2025

We provide an updated NAV analysis of Samsung C&T, discuss the reduced overhang post final Lee family inheritance tax payment, and provide further...

Douglas Kim

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