Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<div class="content-highlight">
<p>On 29 September, <a href="https://www.smartkarma.com/entities/hyundai-mobis-co-ltd" target="_blank" data-smartkarma-citation="entities:6089:1" rel="noopener">Hyundai Mobis (012330 KS)</a> announced that it will buy back 221 billion won (US$188 million) worth of its shares (983,000 shares), representing 1% of shares outstanding. Of the 221 billion won worth of share repurchase, it will cancel 62.5 billion won worth of shares. The share repurchase will occur from 5 October to 28 December 2020. </p>
<p>This share buyback is part of the 1 trillion won share buyback program (over 3 years period) that the company announced back in February 2019. Due to the uncertainties associated with COVID-19, Hyundai Mobis decided not to buy back shares in 1H 2020 but now with the COVID-19 partly under control in Korea, the company decided that now is the time to conduct share repurchase again. </p>
</div>


On 29 September, Hyundai Mobis (012330 KS) announced that it will buy back 221 billion won (US$188 million) worth of its shares (983,000 shares), representing 1% of shares outstanding. Of the 221 billion won worth of share repurchase, it will cancel 62.5 billion won worth of shares. The share repurchase will occur from 5 October to 28 December 2020. 
This share buyback is part of the 1 trillion won share buyback program (over 3 years period) that the company announced back in February 2019. Due to the uncertainties associated with COVID-19, Hyundai Mobis decided not to buy back shares in 1H 2020 but now with the COVID-19 partly under control in Korea, the company decided that now is the time to conduct share repurchase again. 


Hyundai Mobis - Restarts Its Big Share Buyback Program in 4Q 2020

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Private Capital Markets

GoTo Gojek Tokopedia Tbk PT / Private Capital Markets

<p>Recent news suggests that <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> and <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> have restarted discussions on a possible merger backed by SoftBank CEO and founder Masayoshi Son. Our view is that it seems this ride-hailing mega-merger becomes less-likely should <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> take a stake in <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a>. It was recently reported that it would invest US$3bn into the ride-hailing company, with some of this stake potentially coming out of <a href="https://www.smartkarma.com/entities/uber-technologies-inc" target="_blank" data-smartkarma-citation="entities:430:1" rel="noopener">Uber (UBER US).</a></p>
<p>Quite apart from the fact that <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> has only recently received investment from <a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> and <a href="https://www.smartkarma.com/entities/paypal-holdings-inc" target="_blank" data-smartkarma-citation="entities:4747:1" rel="noopener">Paypal Holdings (PYPL US),</a> the company is also viewed as a  national champion in Indonesia, with high-profile shareholders such as <a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> and Djarum Group, who may object to the deal, under which <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> may come out on top being the bigger company currently, in terms of recent valuations. </p>
<p>There has been much debate surrounding the incessant competition between so-called Super Apps Indonesia-based <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> and Singapore headquartered <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP),</a> as they vie for position in the former's home market and across the rest of South-East Asia.  Although originally both App-based ride-hailing companies, both now offer a much wider variety of services including food-delivery and crucially, digital payments, and other financial services. Gojek through Go-Pay and Grab through GrabPay regionally, and OVO in Indonesia, where it has a stake. </p>
<p><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> backed <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> dominates in its home market of Indonesia, which makes up 90% of its revenues but it is also presenting some challenges to Grab in Singapore, Thailand, and Vietnam and possibly soon to be the Philippines and even Malaysia. </p>
<p><a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> has been making in-roads into the App-based motorcycle and taxi business in Indonesia, as well as the food-delivery business through GrabFood with the use of heavy promotions and subsidies. Given a more recent focus on profitability plus the impact of COVID-19 PSBB (large scale social distancing) measures on all businesses, especially ride-hailing, it is undoubtedly feeling the pressure in Indonesia.</p>
<p>Both companies have formidable funding war chests, with <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> managing to complete its latest US$2.5bn round in the midst of the pandemic and topping this up again only a couple of months ago. Grab raised a whopping US$4.5bn in its last round and potentially another US$3bn round from <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> though some of this may be existing shares. </p>
<p>In some ways, money is not the issue and it is the winning strategy that counts. <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> has a history of frugality but has made a number of missteps in the last year, withdrawing some of its GoLife services, withdrawing GoMart, and a failed attempt at entering the Philippines. <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> has been very aggressive in providing subsidies in its food businesses in Indonesia to gain share. It remains to be seen how this approach will pan out in the longer-term, especially in light of COVID-19, which has hit ride-hailing hard.</p>
<p>Future funding is another longer-term issue, despite the recent amounts that have been raised. In this respect, <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> is better positioned after its very recent funding round, which brought in <a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> and <a href="https://www.smartkarma.com/entities/paypal-holdings-inc" target="_blank" data-smartkarma-citation="entities:4747:1" rel="noopener">Paypal Holdings (PYPL US)</a>. For <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a>, it was less certain until recently, at a time when Softbank is reeling from the WeWork and OYO experiences. Valuations of global comparable such as <a href="https://www.smartkarma.com/entities/uber-technologies-inc" target="_blank" data-smartkarma-citation="entities:430:1" rel="noopener">Uber (UBER US)</a> and <a href="https://www.smartkarma.com/entities/lyft-inc" target="_blank" data-smartkarma-citation="entities:24423:1" rel="noopener">Lyft Inc (LYFT US)</a> have also come under pressure, which suggests that we could see some markdown on <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP),</a> especially with its higher exposure to ride-hailing. </p>

Recent news suggests that Grab (0967655D SP) and Gojek (1379371D IJ) have restarted discussions on a possible merger backed by SoftBank CEO and founder Masayoshi Son. Our view is that it seems this ride-hailing mega-merger becomes less-likely should Alibaba Group (BABA US) take a stake in Grab (0967655D SP). It was recently reported that it would invest US$3bn into the ride-hailing company, with some of this stake potentially coming out of Uber (UBER US).
Quite apart from the fact that Gojek (1379371D IJ) has only recently received investment from Facebook Inc A (FB US) and Paypal Holdings (PYPL US), the company is also viewed as a  national champion in Indonesia, with high-profile shareholders such as Astra International (ASII IJ) and Djarum Group, who may object to the deal, under which Grab (0967655D SP) may come out on top being the bigger company currently, in terms of recent valuations. 
There has been much debate surrounding the incessant competition between so-called Super Apps Indonesia-based Gojek (1379371D IJ) and Singapore headquartered Grab (0967655D SP), as they vie for position in the former's home market and across the rest of South-East Asia.  Although originally both App-based ride-hailing companies, both now offer a much wider variety of services including food-delivery and crucially, digital payments, and other financial services. Gojek through Go-Pay and Grab through GrabPay regionally, and OVO in Indonesia, where it has a stake. 
Tencent Holdings (700 HK) backed Gojek (1379371D IJ) dominates in its home market of Indonesia, which makes up 90% of its revenues but it is also presenting some challenges to Grab in Singapore, Thailand, and Vietnam and possibly soon to be the Philippines and even Malaysia. 
Grab (0967655D SP) has been making in-roads into the App-based motorcycle and taxi business in Indonesia, as well as the food-delivery business through GrabFood with the use of heavy promotions and subsidies. Given a more recent focus on profitability plus the impact of COVID-19 PSBB (large scale social distancing) measures on all businesses, especially ride-hailing, it is undoubtedly feeling the pressure in Indonesia.
Both companies have formidable funding war chests, with Gojek (1379371D IJ) managing to complete its latest US$2.5bn round in the midst of the pandemic and topping this up again only a couple of months ago. Grab raised a whopping US$4.5bn in its last round and potentially another US$3bn round from Alibaba Group (BABA US) though some of this may be existing shares. 
In some ways, money is not the issue and it is the winning strategy that counts. Gojek (1379371D IJ) has a history of frugality but has made a number of missteps in the last year, withdrawing some of its GoLife services, withdrawing GoMart, and a failed attempt at entering the Philippines. Grab (0967655D SP) has been very aggressive in providing subsidies in its food businesses in Indonesia to gain share. It remains to be seen how this approach will pan out in the longer-term, especially in light of COVID-19, which has hit ride-hailing hard.
Future funding is another longer-term issue, despite the recent amounts that have been raised. In this respect, Gojek (1379371D IJ) is better positioned after its very recent funding round, which brought in Facebook Inc A (FB US) and Paypal Holdings (PYPL US). For Grab (0967655D SP), it was less certain until recently, at a time when Softbank is reeling from the WeWork and OYO experiences. Valuations of global comparable such as Uber (UBER US) and Lyft Inc (LYFT US) have also come under pressure, which suggests that we could see some markdown on Grab (0967655D SP), especially with its higher exposure to ride-hailing. 

Gojek and Grab - A Merger of the Super Apps on the Offing? We Think Not.

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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

<p>Hyundai Mobis is at -2.3σ on a 20D MA relative to its brother, Hyundai Motor ordinary share.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"% of sigma"}'>% of sigma</td></tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Today"}'>Today</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":-2.3035030515769517}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">-230.35%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"T-1"}'>T-1</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":-0.916931344299026}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">-91.69%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"T-2"}'>T-2</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":-0.5645130872563673}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">-56.45%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"T-3"}'>T-3</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.2465686874114751}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">24.66%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"T-4"}'>T-4</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":-0.4247825847315971}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">-42.48%</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"T-5"}'>T-5</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":-0.09495037677635225}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-12]C[6]">-9.50%</td>
</tr>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'><em>Source: KRX</em></td></tr>
</tbody>
</table><p>The price ratio between them is now practically at a 2-yr low.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="100">
<col width="100">
</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":1.2701949860724233}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-21]C[1]">1.27019</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":1.3161097671656496}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-22]C[2]">1.31611</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":0.0199325896537422}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-23]C[5]">0.01993</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":1.3360423568193918}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-24]C[3]">1.33604</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":1.2961771775119075}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-25]C[4]">1.29618</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":1.7010486771205928}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=average(Data!R2C3:R100C3)">1.70105</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.25328710274034383}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">-25.33%</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":1.8409818569903948}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MEDIAN(Data!R2C3:R100C3)">1.84098</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.3100448104638489}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">-31.00%</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":2.0878048780487806}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MAX(Data!R2C3:R100C3)">2.08780</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.391612214614844}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">-39.16%</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":1.2691218130311614}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MIN(Data!R2C3:R100C3)">1.26912</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0008456028651014254}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">0.08%</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":1.8509836907922768}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=average(Data!R2C3:R248C3)">1.85098</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.313772999518574}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">-31.38%</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":1.9119351100811124}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MEDIAN(Data!R2C3:R248C3)">1.91194</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.3356495315269689}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">-33.56%</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":2.197309417040359}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MAX(Data!R2C3:R248C3)">2.19731</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.4219316696037747}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">-42.19%</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":1.2691218130311614}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MIN(Data!R2C3:R248C3)">1.26912</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0008456028651014254}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">0.08%</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":1.7960316722025786}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=average(Data!R2C3:R476C3)">1.79603</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.2927769561464866}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">-29.28%</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":1.7972103004291846}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MEDIAN(Data!R2C3:R476C3)">1.79721</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.29324075998835913}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">-29.32%</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":2.197309417040359}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MAX(Data!R2C3:R476C3)">2.19731</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.4219316696037747}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">-42.19%</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":1.2691218130311614}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MIN(Data!R2C3:R476C3)">1.26912</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0008456028651014254}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R23C[-1]-R[0]C[-1])/R[0]C[-1]">0.08%</td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX &amp; Sanghyun Park"}'><em>Source: KRX</em></td></tr>
</tbody>
</table><p>The duo had undergone a harsh correction (price ratio-wise) in July. Since then, they have drifted sideways within a box.</p><p>So, this much short-term price diversion is the broadest since late July. </p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/161/053/original/chart.png?1600897627" class="editor-image img-responsive" data-smartkarma-image-id="161053"></figure>

Hyundai Mobis is at -2.3σ on a 20D MA relative to its brother, Hyundai Motor ordinary share.





% of sigma

Today
-230.35%


T-1
-91.69%


T-2
-56.45%


T-3
24.66%


T-4
-42.48%


T-5
-9.50%

Source: KRX

The price ratio between them is now practically at a 2-yr low.






Price ratio

Today
1.27019
-


20D MA
1.31611
-


σ
0.01993
-


+1 σ
1.33604
-


-1 σ
1.29618
-


120D mean
1.70105
-25.33%


120D median
1.84098
-31.00%


120D high
2.08780
-39.16%


120D low
1.26912
0.08%


1Y mean
1.85098
-31.38%


1Y median
1.91194
-33.56%


1Y high
2.19731
-42.19%


1Y low
1.26912
0.08%


2Y mean
1.79603
-29.28%


2Y median
1.79721
-29.32%


2Y high
2.19731
-42.19%


2Y low
1.26912
0.08%

Source: KRX

The duo had undergone a harsh correction (price ratio-wise) in July. Since then, they have drifted sideways within a box.So, this much short-term price diversion is the broadest since late July. 

Hyundai Mobis/Motor At -2.3σ: Entry Point for Range Trading

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

ASA Capital Management

ASA Capital Management is a boutique Research and Investment Advisory firm focusing on primary research in India. ASA provides bespoke research services to Institutional Clients with a focus on due diligence backed with primary research, Field Trips & Channel Checks.

Thematic (Sector/Industry)

<div>
<p>This insight is a sequel to our monthly auto tracker insights. It covers the performance of the auto sector in India for the month of August, 2020. We look at four main aspects - the four wheeler vehicle segment, the two wheeler vehicle segment, vehicle registration data and alternative data search trends. We also now report OEM volumes covering <a href="https://www.smartkarma.com/entities/maruti-suzuki-india-ltd" target="_blank" data-smartkarma-citation="entities:733:1" rel="noopener">Maruti Suzuki India (MSIL IN)</a> , <a href="https://www.smartkarma.com/entities/tvs-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:16123:1" rel="noopener">TVS Motor (TVSL IN)</a> ,<a href="https://www.smartkarma.com/entities/eicher-motors-ltd" target="_blank" data-smartkarma-citation="entities:18316:1" rel="noopener">Eicher Motors (EIM IN)</a> and <a href="https://www.smartkarma.com/entities/hero-motocorp-ltd" target="_blank" data-smartkarma-citation="entities:2391:1" rel="noopener">Hero Motocorp (HMCL IN)</a> . </p>
</div>
<div>
<p>August data shows the slight turn in consumers' behaviour towards the segment. With government initiatives now focussed on rejuvenating public transport, consumers are now backing away from private vehicle purchases. There has been an incredible growth in the two-wheeler segment and we also see an optimistic return to normalcy in rural India.</p>
<div class="content-highlight">
<p>This is a Joint insight with <a href="https://www.smartkarma.com/profiles/nitin-mangal" target="_blank" data-smartkarma-citation="accounts:1988" rel="noopener">Nitin Mangal</a> </p>
</div>
</div>


This insight is a sequel to our monthly auto tracker insights. It covers the performance of the auto sector in India for the month of August, 2020. We look at four main aspects - the four wheeler vehicle segment, the two wheeler vehicle segment, vehicle registration data and alternative data search trends. We also now report OEM volumes covering Maruti Suzuki India (MSIL IN) , TVS Motor (TVSL IN) ,Eicher Motors (EIM IN) and Hero Motocorp (HMCL IN) . 


August data shows the slight turn in consumers' behaviour towards the segment. With government initiatives now focussed on rejuvenating public transport, consumers are now backing away from private vehicle purchases. There has been an incredible growth in the two-wheeler segment and we also see an optimistic return to normalcy in rural India.

This is a Joint insight with Nitin Mangal 



India Autos | Auto Tracker for August - YoY Volume Recovery

<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 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)

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