Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<ul>
<li>There are two key, positive catalysts for major Korean holding companies that could result in these stocks outperforming the market in the coming months.</li>
<li>The first main catalyst is that the two leading presidential candidates are both have campaign pledges to protect minority shareholders when conglomerates conduct physical division spin-offs/splits. </li>
<li>The second key catalyst is the shift from growth to value stocks amid heightened market volatility.</li>
</ul>


There are two key, positive catalysts for major Korean holding companies that could result in these stocks outperforming the market in the coming months.
The first main catalyst is that the two leading presidential candidates are both have campaign pledges to protect minority shareholders when conglomerates conduct physical division spin-offs/splits. 
The second key catalyst is the shift from growth to value stocks amid heightened market volatility.


Two Key Positive Catalysts for Major Korean Holding Companies

Event-Driven

<ul>
<li>It has been confirmed that Londian Wason Holdings Co, a Chinese copper foil material producer, is pushing for a listing on the Hong Kong Stock Exchange in 2022.</li>
<li>Londian Wason Holdings' value could reach nearly 5 trillion won. SK Inc's 30% stake could be valued at about 1.5 trillion won. </li>
<li>Our updated SoTP valuation of SK Inc suggests implied price of 294,591 won per share, representing a 34% upside from current levels.</li>
</ul>


It has been confirmed that Londian Wason Holdings Co, a Chinese copper foil material producer, is pushing for a listing on the Hong Kong Stock Exchange in 2022.
Londian Wason Holdings' value could reach nearly 5 trillion won. SK Inc's 30% stake could be valued at about 1.5 trillion won. 
Our updated SoTP valuation of SK Inc suggests implied price of 294,591 won per share, representing a 34% upside from current levels.


SK Inc: Significant Gains of Nearly 1.1 Trillion Won in Londian Wason Holdings

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>The merger between SK Inc and SK Materials will officially end next Monday (December 27) with the listing of new stocks.</li>
<li>1,377,867 shares exercised appraisal rights. As a result, the number of new shares issued decreased to 3,789,032, pulling down the total shares to 74,149,329.</li>
<li>Passive flow-wise, we will likely see an outflow of about 0.15x ADTV at the close on the trading day (November 26) preceding the listing date.</li>
</ul>


The merger between SK Inc and SK Materials will officially end next Monday (December 27) with the listing of new stocks.
1,377,867 shares exercised appraisal rights. As a result, the number of new shares issued decreased to 3,789,032, pulling down the total shares to 74,149,329.
Passive flow-wise, we will likely see an outflow of about 0.15x ADTV at the close on the trading day (November 26) preceding the listing date.


SK Inc Flow Tracking for New Shares Listing on Dec 27

<ul>
<li>Shares of SK Innovation soared more than 8% today. The reason for the surge is the expectation that SK On will be listed on the NASDAQ rather than the KOSPI.</li>
<li>The news that KRX is preparing to restrict the recently surging practice of equity carve-out (ECO)-based listing has flowed into the local market today.</li>
<li>Obviously, the market has overreacted today to SK Innovation. SK On's NASDAQ listing stems from a vague expectation. So, today's stock price surge won't lead to a structural price uptrend.</li>
</ul>


Shares of SK Innovation soared more than 8% today. The reason for the surge is the expectation that SK On will be listed on the NASDAQ rather than the KOSPI.
The news that KRX is preparing to restrict the recently surging practice of equity carve-out (ECO)-based listing has flowed into the local market today.
Obviously, the market has overreacted today to SK Innovation. SK On's NASDAQ listing stems from a vague expectation. So, today's stock price surge won't lead to a structural price uptrend.


SK Innovation's 8% Price Gain Today: SK On's NASDAQ Listing?

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>It has been an interesting year and short interest has varied a lot across countries, sectors and stocks. We look at changes in Hong Kong, Japan, Korea and Taiwan.</li>
<li>Shorts have soared in Korea following the resumption of short selling, while short interest has increased in the other countries too.</li>
<li>Ping An Insurance and BYD had the biggest short covering, while China Merchants Bank saw the largest increase in shorts over the year.</li>
</ul>


It has been an interesting year and short interest has varied a lot across countries, sectors and stocks. We look at changes in Hong Kong, Japan, Korea and Taiwan.
Shorts have soared in Korea following the resumption of short selling, while short interest has increased in the other countries too.
Ping An Insurance and BYD had the biggest short covering, while China Merchants Bank saw the largest increase in shorts over the year.


South Korea

SK Holdings Co., Ltd. is a holdings company that is engaged in various industries including energy, chemicals, information technology, semiconductors, marketing, and services businesses in South Korea and internationally.

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SK Inc (034730 KS)

Two Key Positive Catalysts for Major Korean Holding Companies

There are two key, positive catalysts for major Korean holding companies that could result in these stocks outperforming the market in the coming...

Douglas Kim

SK Inc: Significant Gains of Nearly 1.1 Trillion Won in Londian Wason Holdings

Londian Wason Holdings is pushing for an IPO in 2022. Londian Wason Holdings' value could reach nearly 5 trillion won. SK Inc's 30% stake could be...

Douglas Kim

SK Inc Flow Tracking for New Shares Listing on Dec 27

This post tracks SK Inc's flow with listing newly issued shares from the merger and discusses possible trading approaches.

Sanghyun Park

SK Innovation's 8% Price Gain Today: SK On's NASDAQ Listing?

The market has overreacted today to SK Innovation. SK On's NASDAQ listing is based on a vague expectation, and a structural price uptrend is...

Sanghyun Park

Asia: The Year in Shorts

There have been large increases and decreases in short interest on stocks across HK, Japan, Korea and Taiwan over the year. We look at the biggest...

Brian Freitas

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