Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>On 20 April, Chile's government announced that it will be nationalizing the country's lithium industry. Chile is the second largest producer of lithium in the world. </li>
<li>The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies in Korea.</li>
<li>This is mainly due to greater challenges of getting access to lithium at more affordable prices. </li>
</ul>


On 20 April, Chile's government announced that it will be nationalizing the country's lithium industry. Chile is the second largest producer of lithium in the world. 
The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies in Korea.
This is mainly due to greater challenges of getting access to lithium at more affordable prices. 


Nationalization of Lithium Industry in Chile - Impact on Korean Rechargeable Batteries Value Chain

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.</li>
<li>Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.</li>
<li>We highlight 38 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.
Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.
We highlight 38 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2023

Event-Driven

<ul>
<li>According to Hankyung Business Daily, Ecopro BM Co Ltd (247540 KS) is considering on issuing a CB worth 500 billion won to various private equity and asset managment companies.</li>
<li>We would be negative on the potential CB issuance of nearly 500 billion won by Ecopro BM.</li>
<li>The potential issuance of this CB is a signal from the management that it is trying to capitalize on the recent sharp increases in share price to raise more capital.</li>
</ul>


According to Hankyung Business Daily, Ecopro BM Co Ltd (247540 KS) is considering on issuing a CB worth 500 billion won to various private equity and asset managment companies.
We would be negative on the potential CB issuance of nearly 500 billion won by Ecopro BM.
The potential issuance of this CB is a signal from the management that it is trying to capitalize on the recent sharp increases in share price to raise more capital.


Ecopro BM: Considering on a CB Issuance of 500 Billion Won

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/ecopro-co-ltd" target="_blank" data-smartkarma-citation="entities:19029:1" rel="noopener">Ecopro (086520 KS)</a></strong> is up an eye-watering 590% in the past three months, primarily on <a href="https://www.smartkarma.com/entities/ecopro-bm-co-ltd" target="_blank" data-smartkarma-citation="entities:27873:1" rel="noopener"><strong>Ecopro BM (247540 KS)</strong></a>'s outperformance, together with sentiment towards soon-to-be-listed 52.8% held Ecopro Materials. </li>
<li>Preceding my comments on Ecopro are the weekly setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



Ecopro (086520 KS) is up an eye-watering 590% in the past three months, primarily on Ecopro BM (247540 KS)'s outperformance, together with sentiment towards soon-to-be-listed 52.8% held Ecopro Materials. 
Preceding my comments on Ecopro are the weekly setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


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.

Global X Lithium & Battery Tech ETF / Event-Driven

<ul>
<li>LG Energy Solution and Samsung SDI will remain in the index as top stocks of pack makers, respectively. Ecopro BM will almost certainly replace L&amp;F in the category of Cathode.</li>
<li>SK IE Technology will newly join the index with Separator's top stock. On the other hand, Lotte Energy Materials and SKC are unlikely to be included.</li>
<li>This event can be a critical inflection point in predicting the counter-flow for short positions against Ecopro BM and L&amp;F in advance.</li>
</ul>


LG Energy Solution and Samsung SDI will remain in the index as top stocks of pack makers, respectively. Ecopro BM will almost certainly replace L&amp;F in the category of Cathode.
SK IE Technology will newly join the index with Separator's top stock. On the other hand, Lotte Energy Materials and SKC are unlikely to be included.
This event can be a critical inflection point in predicting the counter-flow for short positions against Ecopro BM and L&amp;F in advance.


Pre-Positioning Targeting Solactive Global Lithium Index's October Rebalancing

South Korea

Ecopro BM Co.,Ltd develops and manufactures advanced materials. The Company produces and sells high-nickel cathode materials and other products. Ecopro BM markets its products throughout Korea.

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Ecopro BM (247540 KS)

Nationalization of Lithium Industry in Chile - Impact on Korean Rechargeable Batteries Value Chain

The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies...

Douglas Kim

Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023. We highlight 38 pair trades that...

Douglas Kim

Ecopro BM: Considering on a CB Issuance of 500 Billion Won

According to Hankyung Business Daily, Ecopro BM Co Ltd (247540 KS) is considering on issuing a CB worth 500 billion won to various private equity...

Douglas Kim

StubWorld: Ecopro's Spike Makes No Sense

The current share price gain in Ecopro appears unsustainable. I would look to unwind the stub - short Ecopro Co and long Ecopro BM - once the...

David Blennerhassett

Pre-Positioning Targeting Solactive Global Lithium Index's October Rebalancing

This post investigates several pre-positioning angles for passive flow trading and counter-attack flow against short positions with Solactive...

Sanghyun Park

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