Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<div class="content-highlight">
<p>We continue to have a positive view of Doosan Infracore. The fundamentals are improving significantly and the shorts need to cover more before the stock is suspended from trading on 29 June. The price ratio between Doosan Infracore/DHIC recently peaked on 12 May to 0.87 and has been declining since then to 0.66. So on a relative basis, we think that Doosan Infracore could outperform DHIC this month. </p>
<p>Over a longer view (1-2 years), DHIC can benefit from increased exports of SMR nuclear power and if the opposition party wins the Presidency in South Korea next March, this could also fuel higher demand for nuclear power in Korea which should benefit DHIC. Due to the sharp increase in its share price in the past few weeks, DHIC's shares could enter a correction in the near term, but we would not short it at current levels.</p>
<p>Certainly, many investors are betting against DHIC right now, especially in the past one month. However, we believe that the tides are turning big time for nuclear power (in both South Korea and for exports through SMR). DHIC has the best technology and expertise for nuclear power in South Korea and if there are greater demand for nuclear power for both exports as well as in Korea, DHIC would be the number one company to benefit from this trend. </p>
</div>


We continue to have a positive view of Doosan Infracore. The fundamentals are improving significantly and the shorts need to cover more before the stock is suspended from trading on 29 June. The price ratio between Doosan Infracore/DHIC recently peaked on 12 May to 0.87 and has been declining since then to 0.66. So on a relative basis, we think that Doosan Infracore could outperform DHIC this month. 
Over a longer view (1-2 years), DHIC can benefit from increased exports of SMR nuclear power and if the opposition party wins the Presidency in South Korea next March, this could also fuel higher demand for nuclear power in Korea which should benefit DHIC. Due to the sharp increase in its share price in the past few weeks, DHIC's shares could enter a correction in the near term, but we would not short it at current levels.
Certainly, many investors are betting against DHIC right now, especially in the past one month. However, we believe that the tides are turning big time for nuclear power (in both South Korea and for exports through SMR). DHIC has the best technology and expertise for nuclear power in South Korea and if there are greater demand for nuclear power for both exports as well as in Korea, DHIC would be the number one company to benefit from this trend. 


Declining Shorts for Doosan Infracore & A Big Jump in Shorts for Doosan Heavy Industries

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <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>, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/china-merchants-bank-co-ltd-3388a037-4214-4997-b45d-520518cfdb57" target="_blank" data-smartkarma-citation="entities:10987:1" rel="noopener">China Merchants Bank H (3968 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a> and <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/baidu-inc-a55ca720-5968-48f0-8194-ac94390d065c" target="_blank" data-smartkarma-citation="entities:32212:1" rel="noopener">Baidu (9888 HK)</a>, <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home Co Ltd (6690 HK)</a>, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> and <a href="https://www.smartkarma.com/entities/citic-securities-h" target="_blank" data-smartkarma-citation="entities:463:1" rel="noopener">Citic Securities (H) (6030 HK)</a>. Shorts increased in the Communication Services, Consumer Discretionary, Health Care and Real Estate sectors, and decreased in the Financials, Industrials, and Information Technology sectors.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/lasertec-corp" target="_blank" data-smartkarma-citation="entities:4126:1" rel="noopener">Lasertec Corp (6920 JP)</a>, <a href="https://www.smartkarma.com/entities/anritsu-corp" target="_blank" data-smartkarma-citation="entities:3700:1" rel="noopener">Anritsu Corp (6754 JP)</a>, <a href="https://www.smartkarma.com/entities/daito-trust-construct-co-ltd" target="_blank" data-smartkarma-citation="entities:10503:1" rel="noopener">Daito Trust Construct (1878 JP)</a>, <a href="https://www.smartkarma.com/entities/jfe-holdings-inc" target="_blank" data-smartkarma-citation="entities:210:1" rel="noopener">JFE Holdings (5411 JP)</a> and <a href="https://www.smartkarma.com/entities/tokyu-fudosan-holdings-corp" target="_blank" data-smartkarma-citation="entities:8355:1" rel="noopener">Tokyu Fudosan Holdings (3289 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/ana-holdings-inc" target="_blank" data-smartkarma-citation="entities:5308:1" rel="noopener">Ana Holdings (9202 JP)</a>, <a href="https://www.smartkarma.com/entities/h-i-s-co-ltd" target="_blank" data-smartkarma-citation="entities:19311:1" rel="noopener">H I S Co Ltd (9603 JP)</a>, <a href="https://www.smartkarma.com/entities/outsourcing-inc" target="_blank" data-smartkarma-citation="entities:7431:1" rel="noopener">Outsourcing Inc (2427 JP)</a> and <a href="https://www.smartkarma.com/entities/euglena-co-ltd" target="_blank" data-smartkarma-citation="entities:8414:1" rel="noopener">Euglena Co Ltd (2931 JP)</a>. Shorts increased in the Real Estate and Consumer Discretionary sectors, and decreased in the Industrials sector.</p></div><div><p>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> and <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a> during the week while decreasing on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/hyundai-heavy-industries" target="_blank" data-smartkarma-citation="entities:10155:1" rel="noopener">Hyundai Heavy Industries (009540 KS)</a> and <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a>. The short sell ban has ended today and short selling will be permitted on <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> constituents from Monday, 3 May.</p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/china-development-financial" target="_blank" data-smartkarma-citation="entities:13818:1" rel="noopener">China Development Financial (2883 TT)</a>, <a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a>, <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 TT)</a>, <a href="https://www.smartkarma.com/entities/walsin-lihwa-corp" target="_blank" data-smartkarma-citation="entities:17142:1" rel="noopener">Walsin Lihwa (1605 TT)</a> and <a href="https://www.smartkarma.com/entities/compal-electronics" target="_blank" data-smartkarma-citation="entities:4620:1" rel="noopener">Compal Electronics (2324 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a>, <a href="https://www.smartkarma.com/entities/winbond-electronics-corp" target="_blank" data-smartkarma-citation="entities:9177:1" rel="noopener">Winbond Electronics (2344 TT)</a>, <a href="https://www.smartkarma.com/entities/asmedia-technology-inc" target="_blank" data-smartkarma-citation="entities:15732:1" rel="noopener">Asmedia Technology (5269 TT)</a>, <a href="https://www.smartkarma.com/entities/genius-electronic-optical-co-ltd" target="_blank" data-smartkarma-citation="entities:9632:1" rel="noopener">Genius Electronic Optical (3406 TT)</a> and <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a>.</p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Tencent Holdings (700 HK), Meituan (3690 HK), China Merchants Bank H (3968 HK), WuXi AppTec Co. Ltd. (2359 HK) and Sunny Optical (2382 HK) while there was short covering on Ping An Insurance (H) (2318 HK), Baidu (9888 HK), Haier Smart Home Co Ltd (6690 HK), Alibaba Group (9988 HK) and Citic Securities (H) (6030 HK). Shorts increased in the Communication Services, Consumer Discretionary, Health Care and Real Estate sectors, and decreased in the Financials, Industrials, and Information Technology sectors.In Japan, stocks that saw the most shorts were Lasertec Corp (6920 JP), Anritsu Corp (6754 JP), Daito Trust Construct (1878 JP), JFE Holdings (5411 JP) and Tokyu Fudosan Holdings (3289 JP) while shorts decreased on Toshiba Corp (6502 JP), Ana Holdings (9202 JP), H I S Co Ltd (9603 JP), Outsourcing Inc (2427 JP) and Euglena Co Ltd (2931 JP). Shorts increased in the Real Estate and Consumer Discretionary sectors, and decreased in the Industrials sector.In Korea, shorts increased on Celltrion Inc (068270 KS) and Hyundai Motor Co (005380 KS) during the week while decreasing on Samsung Electronics (005930 KS), Hyundai Heavy Industries (009540 KS) and Doosan Infracore (042670 KS). The short sell ban has ended today and short selling will be permitted on Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) and KOSDAQ 150 Index (KOSDQ150 INDEX) constituents from Monday, 3 May.Stocks in Taiwan that saw the highest increase in shorts were China Development Financial (2883 TT), Yang Ming Marine Transport (2609 TT), Evergreen Marine Corp (2603 TT), Walsin Lihwa (1605 TT) and Compal Electronics (2324 TT) while shorts were covered on AU Optronics (2409 TT), Winbond Electronics (2344 TT), Asmedia Technology (5269 TT), Genius Electronic Optical (3406 TT) and Novatek Microelectronics Corp (3034 TT).

Asia Shorts: Tencent, CM Bank, Wuxi Apptec, Baidu, Anritsu, Daito, Ana, Yang Ming, Evergreen Marine

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/xinyi-solar-holdings-ltd" target="_blank" data-smartkarma-citation="entities:318:1" rel="noopener">Xinyi Solar Holdings (968 HK)</a>, <a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo (992 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a>, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> and <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> while there was short covering on <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>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/china-pacific-insurance-group" target="_blank" data-smartkarma-citation="entities:6177:1" rel="noopener">China Pacific Insurance (2601 HK)</a>, <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a> and <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>. Shorts increased in Consumer Discretionary, Consumer Staples, Health Care and Information Technology, while shorts decreased in Communication Services, Financials, Real Estate and Industrials.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a>, <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-financial-group" target="_blank" data-smartkarma-citation="entities:218:1" rel="noopener">Mitsubishi UFJ Financial (MUFG) (8306 JP)</a>, <a href="https://www.smartkarma.com/entities/resona-holdings-inc" target="_blank" data-smartkarma-citation="entities:6841:1" rel="noopener">Resona Holdings (8308 JP)</a>, <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-lease-finance" target="_blank" data-smartkarma-citation="entities:1467:1" rel="noopener">Mitsubishi UFJ Lease &amp; Finance (8593 JP)</a> and <a href="https://www.smartkarma.com/entities/nsk-ltd" target="_blank" data-smartkarma-citation="entities:6309:1" rel="noopener">NSK Ltd (6471 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/asics-corp" target="_blank" data-smartkarma-citation="entities:16287:1" rel="noopener">ASICS Corp (7936 JP)</a>, <a href="https://www.smartkarma.com/entities/haseko-corp" target="_blank" data-smartkarma-citation="entities:748:1" rel="noopener">Haseko Corp (1808 JP)</a>, <a href="https://www.smartkarma.com/entities/cyberagent-inc" target="_blank" data-smartkarma-citation="entities:8197:1" rel="noopener">CyberAgent Inc (4751 JP)</a> and <a href="https://www.smartkarma.com/entities/idemitsu-kosan-co-ltd" target="_blank" data-smartkarma-citation="entities:109:1" rel="noopener">Idemitsu Kosan (5019 JP)</a>. Shorts increased in Financials, Energy, Health Care and Information Technology sectors, and decreased in the Industrials sector.</p></div><div><p>In Korea, short increased on <a href="https://www.smartkarma.com/entities/amorepacific-corp" target="_blank" data-smartkarma-citation="entities:20854:1" rel="noopener">Amorepacific Corp (090430 KS)</a>, <a href="https://www.smartkarma.com/entities/korea-united-pharm-inc" target="_blank" data-smartkarma-citation="entities:5207:1" rel="noopener">Korea United Pharm (033270 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> and <a href="https://www.smartkarma.com/entities/korea-electric-power-corp" target="_blank" data-smartkarma-citation="entities:16:1" rel="noopener">Korea Electric Power (015760 KS)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a>, <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a> and <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>. </p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a>, <a href="https://www.smartkarma.com/entities/unimicron-technology-corp" target="_blank" data-smartkarma-citation="entities:18778:1" rel="noopener">Unimicron Technology (3037 TT)</a>, <a href="https://www.smartkarma.com/entities/yulon-motor-company" target="_blank" data-smartkarma-citation="entities:18249:1" rel="noopener">Yulon Motor Company (2201 TT)</a> and <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a> and <a href="https://www.smartkarma.com/entities/acer-inc" target="_blank" data-smartkarma-citation="entities:15726:1" rel="noopener">Acer Inc (2353 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Xinyi Solar Holdings (968 HK), Lenovo (992 HK), JD Health (6618 HK), BYD (1211 HK) and Alibaba Group (9988 HK) while there was short covering on Tencent Holdings (700 HK), Xiaomi Corp (1810 HK), China Pacific Insurance (2601 HK), Sunny Optical (2382 HK) and CSPC Pharmaceutical Group (1093 HK). Shorts increased in Consumer Discretionary, Consumer Staples, Health Care and Information Technology, while shorts decreased in Communication Services, Financials, Real Estate and Industrials.In Japan, stocks that saw the most shorts were ENEOS Holdings (5020 JP), Mitsubishi UFJ Financial (MUFG) (8306 JP), Resona Holdings (8308 JP), Mitsubishi UFJ Lease &amp; Finance (8593 JP) and NSK Ltd (6471 JP) while shorts decreased on Toshiba Corp (6502 JP), ASICS Corp (7936 JP), Haseko Corp (1808 JP), CyberAgent Inc (4751 JP) and Idemitsu Kosan (5019 JP). Shorts increased in Financials, Energy, Health Care and Information Technology sectors, and decreased in the Industrials sector.In Korea, short increased on Amorepacific Corp (090430 KS), Korea United Pharm (033270 KS), LG Chem Ltd (051910 KS) and Korea Electric Power (015760 KS) while shorts decreased on Samsung Electronics (005930 KS), Doosan Infracore (042670 KS), Naver Corp (035420 KS) and SK Hynix (000660 KS). Stocks in Taiwan that saw the highest increase in shorts were Pegatron Corp (4938 TT), Unimicron Technology (3037 TT), Yulon Motor Company (2201 TT) and United Microelectronics Corp (2303 TT) while shorts were covered on TSMC (2330 TT), Yageo Corporation (2327 TT), AU Optronics (2409 TT) and Acer Inc (2353 TT). 

Asia Short Interest: Xinyi Solar, Alibaba, Tencent, ENEOS, Resona, Toshiba, Samsung, TSMC, Yageo

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.

Doubleu Games leads KOSPI 200 stocks this morning with a 16% gain.It announced this morning that it would IPO one of its subsidiaries, Doubledown Interactive (mobile social gambling website), on NASDAQ as early as possible.Doubleu Games acquired Doubledown in 2017, which delivered ₩422.9B in sales last year, +33% YoY.HMM is making a move today with a 5% gain. It is mainly due to the news that HMM will begin to operate HMM Nuri, the first of eight 16000 TEU-class newbuild containerships.






Gainers
Daily Δ


Doubleu Games Co Ltd
16.26%


HMM Co Ltd
4.71%


GS Engineering &amp; Construction Corp
4.41%


Kolon Industries Inc
4.23%


POSCO
4.12%


Hansae Co., Ltd.
3.88%


Netmarble Corp
3.67%


Fila Holdings Corp
3.64%


HDC Hyundai Development Co
3.51%


SK Networks Co Ltd
2.81%


Huchems Fine Chemical Corporation
2.79%


Celltrion, Inc.
2.77%


LG Display Co Ltd
2.44%


Dong-A Socio Holdings Co Ltd
2.39%


Hanwha Solutions Corp
2.31%


Daewoo Engineering &amp; Construction Co Ltd
2.04%


Hyundai Engineering &amp; Construction Co.
1.86%


Ilyang Pharmaceutical Co., Ltd
1.59%


Halla Holdings Corp
1.58%


Kumho Petro Chemical Co Ltd
1.46%

Source: KRX

POSCO International is the biggest loser early today, mainly due to the concern over the gas pipe project in Myanmar.SKC follows with a 4.4% loss on its first trading day since the suspension following the prosecution’s indictment of SK Networks chairman on charges of embezzlement and a breach of trust.SKC's daily price volatility now sits at 11.2% of the opening.






Losers
Daily Δ


Posco International Corp
-4.42%


SKC Co Ltd
-4.39%


Chong Kun Dang Pharmaceutical Corp
-3.62%


LG Electronics Inc.
-3.23%


Doosan Infracore Co Ltd
-3.14%


Lotte Shopping Co Ltd
-2.73%


Cuckoo Holdings Co Ltd
-2.62%


Asiana Airlines Inc
-2.52%


Hanwha Aerospace Co Ltd
-2.45%


Hyundai Wia Corp
-2.42%


Youngpoong Corp
-2.19%


BGF Co Ltd
-2.19%


Shinsegae Inc
-2.13%


LIG Nex1 Co Ltd
-2.11%


KEPCO Engineering &amp; Construction Co Inc
-2.10%


BNK Financial Group Inc
-2.05%


Kumho Tire Co Inc
-2.04%


SNT MOTIV Co Ltd
-2.03%


Korea Aerospace Industries Ltd
-2.00%


Hyundai Green Food Co Ltd
-1.91%

Source: KRX

SKC, HMM, Pan Ocean, and Doosan Infracore are highly volatile in price early today.






x Open (daily price volatility)
Value


Doubleu Games Co Ltd
15.08%


SKC Co Ltd
11.21%


HMM Co Ltd
9.51%


Pan Ocean Co Ltd
7.71%


Doosan Infracore Co Ltd
7.32%


Hansae Co., Ltd.
6.36%


Bukwang Pharm Co Ltd
5.36%


Daewoo Engineering &amp; Construction Co Ltd
5.16%


Kolon Industries Inc
4.54%


Fila Holdings Corp
4.47%


Korea Aerospace Industries Ltd
4.44%


HDC Hyundai Development Co
4.37%


Hanwha Aerospace Co Ltd
4.37%


Lotte Shopping Co Ltd
4.28%


Oci Co Ltd
4.26%


Halla Holdings Corp
4.22%


LG Electronics Inc.
4.19%


SK Chemicals Co Ltd
4.14%


GS Engineering &amp; Construction Corp
4.14%


Netmarble Corp
4.05%

Source: KRX

Doubleu Games trading exploded, already at 13.87x DTV.Infracore continues to draw a lot of attention as its TV at this point already tripled 1M DTV.






TV/DTV (x)
Value


Doubleu Games Co Ltd
13.87


Doosan Infracore Co Ltd
3.52


SKC Co Ltd
2.55


Pan Ocean Co Ltd
1.79


HMM Co Ltd
1.64


Binggrae Co Ltd
1.55


Lotte Corp
1.51


GS Engineering &amp; Construction Corp
1.49


HDC Hyundai Development Co
1.21


SK Networks Co Ltd
1.20


Daewoo Engineering &amp; Construction Co Ltd
1.16


Lotte Fine Chemical Co Ltd
1.07


Fila Holdings Corp
1.04


Huchems Fine Chemical Corporation
1.00


SPC Samlip Co Ltd
0.96


Hyundai Engineering &amp; Construction Co.
0.95


Mando Corp
0.84


LG Display Co Ltd
0.76


Netmarble Corp
0.74


Korea Electric Power Corporation
0.72

Source: KRX



KOSPI 200 Daily Movers: Doubleu Games, HMM, SKC, & Doosan Infracore

<p>The split ratio (Infracore) is 0.6895026. The one to merge with Heavy takes 0.6895026.</p><p>Then, the merger ratio is 0.6866211, making the swap ratio 0.4734270.</p><p>The remaining 0.3104974 of Infracore will remain on KOSPI with the ticker 042670.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Swap ratio"}'>Swap ratio</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Doosan Infracore split ratio"}'>Doosan Infracore split ratio</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6895026}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}'>0.6895026</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Merger ratio with Doosan Heavy"}'>Merger ratio with Doosan Heavy</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6866211}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}'>0.6866211</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Swap ratio with Doosan Heavy"}'>Swap ratio with Doosan Heavy</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.47342703366485994}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]">0.4734270</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Swap ratio based on the merger price"}'>Swap ratio based on the merger price</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Doosan Infracore Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Doosan Infracore Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"042670"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula='="042670"'>042670</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Merger price"}'>Merger price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7827}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>₩7,827</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Merger price after split"}'>Post-split merger price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5396.7368502}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-1]C[0]*R[-9]C[0]">₩5,397</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Doosan Heavy Industries Constrctn Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Doosan Heavy Industries Constrctn Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"034020"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula='="034020"'>034020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Merger price"}'>Merger price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11400}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>₩11,400</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Swap ratio"}'>Merger price-based swap ratio</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.47342703366485994}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula="=R[-11]C[0]">0.4734270</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>Infracore soared 21.82% yesterday. Heavy? It had a 2.59% gain.</p><p>As a result, assuming the market value of Infracore's other 0.3104974 remains unchanged, the current market price-based swap ratio is at a +20.9% disparity.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Swap ratio based on the market price"}'>Swap ratio based on the market price</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Doosan Infracore Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Doosan Infracore Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"042670"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula='="042670"'>042670</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Market price"}'>Market price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9880}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[-1]C[0], "price")'>₩9,880</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Market price after split"}'>Post-split market price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6812.285688}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-1]C[0]*R[-20]C[0]">₩6,812</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Doosan Heavy Industries Constrctn Co Ltd"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>Doosan Heavy Industries Constrctn Co Ltd</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"034020"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula='="034020"'>034020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Market price"}'>Market price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11900}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[-1]C[0], "price")'>₩11,900</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Swap ratio"}'><strong>Market price-based swap ratio</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.572460982184874}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}' data-sheets-formula="=R[-4]C[0]/R[-1]C[0]"><strong>0.5724610</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Disparity"}'><strong>- Disparity</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.20918524181726464}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-1]C[0]-R[-12]C[0])/R[-12]C[0]"><strong>+20.92%</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>Infracore is now 16.8% above the appraisal rights exercise price. Heavy is +3.8%.</p><p>The ceiling for potential cancellation is ₩300B for Infracore and ₩200B for Heavy.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Entity"}'>Entity</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Purchase rights price"}'>Purchase rights price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% to the current price"}'>% to the current price</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Infracore"}'>Infracore</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8224}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>₩8,224</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.16761133603238867}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[-10]C[-1])/R[-10]C[-1]">16.76%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Heavy"}'>Heavy</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11447}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>₩11,447</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.038067226890756305}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C[-1]-R[-7]C[-1])/R[-7]C[-1]">3.81%</td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

The split ratio (Infracore) is 0.6895026. The one to merge with Heavy takes 0.6895026.Then, the merger ratio is 0.6866211, making the swap ratio 0.4734270.The remaining 0.3104974 of Infracore will remain on KOSPI with the ticker 042670.





Swap ratio

Doosan Infracore split ratio
0.6895026


Merger ratio with Doosan Heavy
0.6866211


Swap ratio with Doosan Heavy
0.4734270

Source: DART







Swap ratio based on the merger price

Name
Doosan Infracore Co Ltd


Ticker
042670


Merger price
₩7,827


Post-split merger price
₩5,397


Name
Doosan Heavy Industries Constrctn Co Ltd


Ticker
034020


Merger price
₩11,400


Merger price-based swap ratio
0.4734270

Source: DART

Infracore soared 21.82% yesterday. Heavy? It had a 2.59% gain.As a result, assuming the market value of Infracore's other 0.3104974 remains unchanged, the current market price-based swap ratio is at a +20.9% disparity.





Swap ratio based on the market price

Name
Doosan Infracore Co Ltd


Ticker
042670


Market price
₩9,880


Post-split market price
₩6,812


Name
Doosan Heavy Industries Constrctn Co Ltd


Ticker
034020


Market price
₩11,900


Market price-based swap ratio
0.5724610


- Disparity
+20.92%

Source: DART

Infracore is now 16.8% above the appraisal rights exercise price. Heavy is +3.8%.The ceiling for potential cancellation is ₩300B for Infracore and ₩200B for Heavy.







Entity
Purchase rights price
% to the current price


Infracore
₩8,224
16.76%


Heavy
₩11,447
3.81%

Source: DART



Doosan Split/Merger: Infracore in Overshooting

South Korea

Hyundai Doosan Infracore Co., Ltd. produces construction machinery. The Company manufactures construction equipment, industrial vehicles, diesel engines, power generators, machine tools, factory automation system, and other products, such as armored vehicles for the defense industry. Hyundai Doosan Infracore markets its products worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

HD Hyundai Infracore (042670 KS)

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In this insight, we provide an update on Doosan Infracore (042670 KS). In particular, we discuss the recent developments at Doosan Infracore and...

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The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

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Asia Short Interest: Xinyi Solar, Alibaba, Tencent, ENEOS, Resona, Toshiba, Samsung, TSMC, Yageo

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

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KOSPI 200 Daily Movers: Doubleu Games, HMM, SKC, & Doosan Infracore

This post is a daily update on the KOSPI 200 movers. It is based on the price performances at 11 AM in Korea local time.

Sanghyun Park

Doosan Split/Merger: Infracore in Overshooting

This post details the Doosan split/merger procedure. Also, it looks into the pair trade opportunities with Infracore and Heavy.

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)