Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<p>Our NAV analysis of <a href="https://www.smartkarma.com/entities/hanwha-corporation" target="_blank" data-smartkarma-citation="entities:10619:1" rel="noopener">Hanwha Corporation (000880 KS)</a> suggests NAV of 3,845 billion won (51,298 won per share). This represents a 62% upside from the current price of 31,600 won. The biggest component of the company's value is its investments in other Hanwha Group related companies. Hanwha Corp's 37% stake in Hanwha Solution is worth 3.3 trillion won, which represents 60% of the value of the company (pre-holdco discount).</p><p>With the resumption of the partial short selling of Korean stocks on May 3rd, more hedge funds and other active investors will likely to employ pair trade strategies involving holdcos and opcos in Korea. The pair between Hanwha Corp and Hanwha Solution is the one which have shown one of widest gaps in share price performance in the past year. In our view, there is a good chance that this price gap narrows between Hanwha Corp and Hanwha Solution in the coming months.</p>

Our NAV analysis of Hanwha Corporation (000880 KS) suggests NAV of 3,845 billion won (51,298 won per share). This represents a 62% upside from the current price of 31,600 won. The biggest component of the company's value is its investments in other Hanwha Group related companies. Hanwha Corp's 37% stake in Hanwha Solution is worth 3.3 trillion won, which represents 60% of the value of the company (pre-holdco discount).With the resumption of the partial short selling of Korean stocks on May 3rd, more hedge funds and other active investors will likely to employ pair trade strategies involving holdcos and opcos in Korea. The pair between Hanwha Corp and Hanwha Solution is the one which have shown one of widest gaps in share price performance in the past year. In our view, there is a good chance that this price gap narrows between Hanwha Corp and Hanwha Solution in the coming months.

Our NAV Analysis of Hanwha Corp and A Pair Trade with Hanwha Solution

<div class="content-highlight"><p>In this insight, we highlight the closing of the pricing gaps between the major Korean holdcos and opcos, especially with the upcoming end of the ban on the short selling of shares in Korea in May. In this insight, we highlight 26 pair trades that involve Korean holdcos and opcos.</p></div><p>Just a reminder that the ban on short selling of KOSPI 200 and KOSDAQ 150 included stocks will remain in place until May 2nd and investors will be able to resume their shorting on these 350 stocks starting on May 3rd. Once this ban on short selling of stocks ends, there could be more investors that may look to add to the holdco shares and short the opco shares (especially among the pairs where the holdco shares have underperformed the opco shares in the past year). However, some of these moves have already started to take place in the past few weeks, which could reduce the overall profits on the pair trades. </p><p>Traditionally, the pair trades involving Korean holdcos and opcos have been a trading strategy that many hedge funds have employed for many years. However, the ban on short selling of stocks in Korea have prevented many of these funds from employing these pair trade strategies. Once the ban ends, you will likely see these funds becoming more active in these trading methods once again. </p><div class="content-highlight">
<p>In the section below, we separated the pair trades into two different sections. The first table involves major opcos outperforming holdcos (regular and quasi) in the past year. Of the 26 pair trade strategies mentioned in this insight, this section I involves 19 of them (73% of total). The section II (which involve holdcos outperforming the opcos in the past year) involves 7 pair trade strategies (27% of total).</p>
<p>In other words, the opcos in general have vastly outperformed the holdcos in the past year, especially due to the ban on the short selling of stocks in Korea. Because the opcos tend to be the bigger company than the holdcos in terms of market cap, many fund managers (both active and passive) have tended to just invest in the opcos and pay less attention to the holdcos.  </p>
</div><p>Also, we described the holdcos as either regular or quasi. SK Telecom and Samsung C&amp;T would be examples of "quasi" holdcos whereas Orion Holdings and Hanjin Kal would be examples of regular holdcos. </p>

In this insight, we highlight the closing of the pricing gaps between the major Korean holdcos and opcos, especially with the upcoming end of the ban on the short selling of shares in Korea in May. In this insight, we highlight 26 pair trades that involve Korean holdcos and opcos.Just a reminder that the ban on short selling of KOSPI 200 and KOSDAQ 150 included stocks will remain in place until May 2nd and investors will be able to resume their shorting on these 350 stocks starting on May 3rd. Once this ban on short selling of stocks ends, there could be more investors that may look to add to the holdco shares and short the opco shares (especially among the pairs where the holdco shares have underperformed the opco shares in the past year). However, some of these moves have already started to take place in the past few weeks, which could reduce the overall profits on the pair trades. Traditionally, the pair trades involving Korean holdcos and opcos have been a trading strategy that many hedge funds have employed for many years. However, the ban on short selling of stocks in Korea have prevented many of these funds from employing these pair trade strategies. Once the ban ends, you will likely see these funds becoming more active in these trading methods once again. 
In the section below, we separated the pair trades into two different sections. The first table involves major opcos outperforming holdcos (regular and quasi) in the past year. Of the 26 pair trade strategies mentioned in this insight, this section I involves 19 of them (73% of total). The section II (which involve holdcos outperforming the opcos in the past year) involves 7 pair trade strategies (27% of total).
In other words, the opcos in general have vastly outperformed the holdcos in the past year, especially due to the ban on the short selling of stocks in Korea. Because the opcos tend to be the bigger company than the holdcos in terms of market cap, many fund managers (both active and passive) have tended to just invest in the opcos and pay less attention to the holdcos.  
Also, we described the holdcos as either regular or quasi. SK Telecom and Samsung C&amp;T would be examples of "quasi" holdcos whereas Orion Holdings and Hanjin Kal would be examples of regular holdcos. 

Closing the Gap: Korean Holdcos Vs. Opcos

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.

<p>We are one trading session before the 1st-round pricing for the Hanwha Systems ₩1.2T offers.</p><p>The pricing is next Monday, April 19. </p><div><div><table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Timetable"}'>Timetable</td></tr>
<tr>
<td style="width: 350.909px;" data-sheets-value='{"1":2,"2":"Preliminary pricing"}'><strong>Preliminary pricing</strong></td>
<td style="text-align: right; width: 351.818px;" data-sheets-value='{"1":3,"3":44305}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 4. 19</strong></td>
</tr>
<tr>
<td style="width: 350.909px;" data-sheets-value='{"1":2,"2":"Ex-rights date"}'><strong>Ex-rights date</strong></td>
<td style="text-align: right; width: 351.818px;" data-sheets-value='{"1":3,"3":44307}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'><strong>2021. 4. 21</strong></td>
</tr>
<tr>
<td style="width: 350.909px;" data-sheets-value='{"1":2,"2":"Record date"}'>Record date</td>
<td style="text-align: right; width: 351.818px;" data-sheets-value='{"1":3,"3":44308}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 4. 22</td>
</tr>
<tr>
<td style="width: 350.909px;" data-sheets-value='{"1":2,"2":"Subscription rights trade beginning"}'>Subscription rights trade beginning</td>
<td style="text-align: right; width: 351.818px;" data-sheets-value='{"1":3,"3":44329}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 5. 13</td>
</tr>
<tr>
<td style="width: 350.909px;" data-sheets-value='{"1":2,"2":"Subscription rights trade ending"}'>Subscription rights trade ending</td>
<td style="text-align: right; width: 351.818px;" data-sheets-value='{"1":3,"3":44329}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 5. 20</td>
</tr>
<tr>
<td style="width: 350.909px;" data-sheets-value='{"1":2,"2":"Final pricing"}'>Final pricing</td>
<td style="text-align: right; width: 351.818px;" data-sheets-value='{"1":3,"3":44347}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 5. 31</td>
</tr>
<tr>
<td style="width: 350.909px;" data-sheets-value='{"1":2,"2":"Listing"}'>Listing</td>
<td style="text-align: right; width: 351.818px;" data-sheets-value='{"1":3,"3":44370}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}'>2021. 6. 23</td>
</tr>
<tr><td colspan="2" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody></table></div></div><div>
<table class="table table-striped">
<colgroup>
<col width="350">
<col width="350">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Pricing"}'>Pricing</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1st round"}'><strong>1st round</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"RP × (1 - 15%) / [1 + (71.39% × 15%)]"}' data-sheets-formula='="RP × (1 - "&amp;(R[11]C[0]*100&amp;"%")&amp;") / [1 + ("&amp;(R[12]C[0]*100&amp;"%"&amp;" × "&amp;(R[11]C[0]*100&amp;"%"&amp;")]"))'><strong>RP × (1 - 15%) / [1 + (71.39% × 15%)]</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference price (RP)"}'><strong>- Reference price (RP)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Min [Close, Avg (Close, 1W VWAP, 1M VWAP)]"}'><strong>Min [Close, Avg (Close, 1W VWAP, 1M VWAP)]</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'><strong>- Reference date</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44305}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}' data-sheets-formula="=Terms!R[41]C[0]"><strong>2021. 4. 19</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ex-rights base price"}'>Ex-rights base price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"[RP + (1st × 71.39%)] / (1 + 71.39%)"}' data-sheets-formula='="[RP + (1st × "&amp;R[9]C[0]*100&amp;"%"&amp;")] / (1 + "&amp;R[9]C[0]*100&amp;"%"&amp;")"'>[RP + (1st × 71.39%)] / (1 + 71.39%)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference price (RP)"}'>- Reference price (RP)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Previous close"}'>Previous close</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44307}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}' data-sheets-formula="=Terms!R[39]C[0]">2021. 4. 21</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2nd round"}'>2nd round</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"RP × (1 - 15%)"}' data-sheets-formula='="RP × (1 - "&amp;(R[5]C[0]*100&amp;"%")&amp;")"'>RP × (1 - 15%)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference price (RP)"}'>- Reference price (RP)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Min [Close, Avg (Close, 1W VWAP)]"}'>Min [Close, Avg (Close, 1W VWAP)]</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44347}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}' data-sheets-formula="=Terms!R[40]C[0]">2021. 5. 31</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Final"}'>Final</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Max [Min (1st, 2nd), 3D VWAP × 60%]"}'>Max [Min (1st, 2nd), 3D VWAP × 60%]</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Reference date"}'>- Reference date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44347}' data-sheets-numberformat='{"1":5,"2":"yyyy. m. d","3":1}' data-sheets-formula="=Terms!R[38]C[0]">2021. 5. 31</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Discount rate"}'>Discount rate</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.15}' data-sheets-numberformat='[null,3,"0.00%",1]'>15.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital increase rate"}'>Capital increase rate</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7139}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=LEFT(Terms!R[11]C[0],6)*100/100">71.39%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>
<p>As I'm writing this post, the share price is ₩20,150 with a 1W VWAP of ₩20,120 and a 1M VWAP of ₩20,829, giving a preliminary RP of ₩20,150.</p>
<p>The 1st round offering price then arrives at ₩15,500 at a discount rate of 15% and a capital increase of 71.39%.</p>
<table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"1st round pricing"}'>1st round pricing</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Date"}'>Date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44305}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"m\". \"d","3":1}'>2021. 4. 19</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1D VWAP"}'>Previous close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20150}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R[-27]C[3], "price")'>₩20,150</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1W VWAP"}'>1W VWAP</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20119.55102347699}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-7]C[2]">₩20,120</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1M VWAP"}'>1M VWAP</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20828.708137926085}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-7]C[2]">₩20,829</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Average"}'>- Average</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20366.086387134357}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])/3">₩20,366</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Reference price"}'><strong>Reference price</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20150}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=min(R[-4]C[0], R[-1]C[0])"><strong>₩20,150</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1st round price"}'><strong>1st round price</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15500}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=ceiling.math((R[-1]C[0]*(1-R[-20]C[5]))/((1+(R[-19]C[5]*R[-20]C[5]))), 100)"><strong>₩15,500</strong></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="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Ex-rights base price"}'>Ex-rights base price</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Date"}'>Date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44307}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"m\". \"d","3":1}'>2021. 4. 21</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Previous close"}'>Previous close</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20150}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-10]C[0]">₩20,150</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1st round"}'>1st round</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15500}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-6]C[0]">₩15,500</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ex-rights base price"}'>Ex-rights base price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":18300}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=ceiling.math(((R[-2]C[0]+(R[-1]C[0]*R[-26]C[5]))/(1+R[-26]C[5])), 100)">₩18,300</td>
</tr>
<tr>
<td> - % to close</td>
<td style="text-align: right;">-9.41%</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX KIND"}'>Source: KRX KIND</td></tr>
</tbody>
</table>
</div>

We are one trading session before the 1st-round pricing for the Hanwha Systems ₩1.2T offers.The pricing is next Monday, April 19. 
Timetable

Preliminary pricing
2021. 4. 19


Ex-rights date
2021. 4. 21


Record date
2021. 4. 22


Subscription rights trade beginning
2021. 5. 13


Subscription rights trade ending
2021. 5. 20


Final pricing
2021. 5. 31


Listing
2021. 6. 23

Source: DART







Pricing

1st round
RP × (1 - 15%) / [1 + (71.39% × 15%)]


- Reference price (RP)
Min [Close, Avg (Close, 1W VWAP, 1M VWAP)]


- Reference date
2021. 4. 19


Ex-rights base price
[RP + (1st × 71.39%)] / (1 + 71.39%)


- Reference price (RP)
Previous close


- Reference date
2021. 4. 21


2nd round
RP × (1 - 15%)


- Reference price (RP)
Min [Close, Avg (Close, 1W VWAP)]


- Reference date
2021. 5. 31


Final
Max [Min (1st, 2nd), 3D VWAP × 60%]


- Reference date
2021. 5. 31


Discount rate
15.00%


Capital increase rate
71.39%

Source: DART


As I'm writing this post, the share price is ₩20,150 with a 1W VWAP of ₩20,120 and a 1M VWAP of ₩20,829, giving a preliminary RP of ₩20,150.
The 1st round offering price then arrives at ₩15,500 at a discount rate of 15% and a capital increase of 71.39%.






1st round pricing

Date
2021. 4. 19


Previous close
₩20,150


1W VWAP
₩20,120


1M VWAP
₩20,829


- Average
₩20,366


Reference price
₩20,150


1st round price
₩15,500

Source: DART








Ex-rights base price

Date
2021. 4. 21


Previous close
₩20,150


1st round
₩15,500


Ex-rights base price
₩18,300


 - % to close
-9.41%

Source: KRX KIND




Hanwha Systems Rights Offer: Outright Trade on Subs Rights Ahead of Ex-Rights

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

EDP - Energias de Portugal SA / Event-Driven

<p>The changes to the S&amp;P Global Clean Energy Index have been announced. There are 52 additions to the index to take the number of index constituents up to 82. The changes are effective after the close of trading on 16 April.</p><p>The 52 additions and capping changes will result in a one-way turnover of close to 55% and will require the ETFs tracking the index to trade US$12bn to rebalance their portfolios.</p><p>The largest buying impact in terms of ADV to trade will be on <a href="https://www.smartkarma.com/entities/edp-energias-de-portugal-sa" target="_blank" data-smartkarma-citation="entities:21362:1" rel="noopener">Edp - Energias De Portugal Sa (EDP PL)</a>, <a href="https://www.smartkarma.com/entities/sse-plc" target="_blank" data-smartkarma-citation="entities:22163:1" rel="noopener">SSE PLC (SSE LN)</a>, <a href="https://www.smartkarma.com/entities/northland-power-inc" target="_blank" data-smartkarma-citation="entities:25480:1" rel="noopener">Northland Power (NPI CN)</a>, <a href="https://www.smartkarma.com/entities/enel-americas-sa-c3a67f8a-ad13-45ff-a676-cbc513b8c458" target="_blank" data-smartkarma-citation="entities:25965:1" rel="noopener">Enel Americas SA (ENIA US)</a>, <a href="https://www.smartkarma.com/entities/drax-group-plc" target="_blank" data-smartkarma-citation="entities:21911:1" rel="noopener">Drax Group PLC (DRX LN)</a>, <a href="https://www.smartkarma.com/entities/meyer-burger-technology-ag" target="_blank" data-smartkarma-citation="entities:25013:1" rel="noopener">Meyer Burger Technology Ag (MBTN SW)</a> and <a href="https://www.smartkarma.com/entities/centrais-eletricas-br-sp-adr" target="_blank" data-smartkarma-citation="entities:28638:1" rel="noopener">Centrais Eletricas Br-Sp Adr (EBR US)</a>.</p><p>The largest selling impact will be on <a href="https://www.smartkarma.com/entities/meridian-ener-partly-paid-sh" target="_blank" data-smartkarma-citation="entities:4327:1" rel="noopener">Meridian Energy (MEL NZ)</a>, <a href="https://www.smartkarma.com/entities/contact-energy-ltd" target="_blank" data-smartkarma-citation="entities:13136:1" rel="noopener">Contact Energy (CEN NZ)</a>, <a href="https://www.smartkarma.com/entities/verbund-ag" target="_blank" data-smartkarma-citation="entities:22563:1" rel="noopener">Verbund AG (VER AV)</a>, <a href="https://www.smartkarma.com/entities/innergex-renewable-energy-inc" target="_blank" data-smartkarma-citation="entities:25479:1" rel="noopener">Innergex Renewable Energy (INE CN)</a>, <a href="https://www.smartkarma.com/entities/cia-energetica-de-spon-adr" target="_blank" data-smartkarma-citation="entities:28644:1" rel="noopener">Cia Energetica De-Spon Adr (CIG US)</a>, <a href="https://www.smartkarma.com/entities/boralex-inc" target="_blank" data-smartkarma-citation="entities:25478:1" rel="noopener">Boralex Inc (BLX CN)</a> and <a href="https://www.smartkarma.com/entities/scatec-solar-asa" target="_blank" data-smartkarma-citation="entities:25120:1" rel="noopener">Scatec Solar ASA (SSO NO)</a>.</p><p>Among the current index constituents, there will be buying on <a href="https://www.smartkarma.com/entities/orsted-a-s" target="_blank" data-smartkarma-citation="entities:24765:1" rel="noopener">Orsted A/S (ORSTED DC)</a> and <a href="https://www.smartkarma.com/entities/vestas-wind-systems-a-s" target="_blank" data-smartkarma-citation="entities:22524:1" rel="noopener">Vestas Wind Systems A/S (VWS DC)</a>.</p><p>We recommend buying the surprise inclusions and unwinding the positions by implementation date. A lot of the stocks that will have a reduction in index weight have been sold off over the last few months and the active positions will be covered leading up to implementation date - we recommend buying these stocks in the days leading up to implementation date since the stocks could rally once the overhang of passive selling has been removed.</p>

The changes to the S&amp;P Global Clean Energy Index have been announced. There are 52 additions to the index to take the number of index constituents up to 82. The changes are effective after the close of trading on 16 April.The 52 additions and capping changes will result in a one-way turnover of close to 55% and will require the ETFs tracking the index to trade US$12bn to rebalance their portfolios.The largest buying impact in terms of ADV to trade will be on Edp - Energias De Portugal Sa (EDP PL), SSE PLC (SSE LN), Northland Power (NPI CN), Enel Americas SA (ENIA US), Drax Group PLC (DRX LN), Meyer Burger Technology Ag (MBTN SW) and Centrais Eletricas Br-Sp Adr (EBR US).The largest selling impact will be on Meridian Energy (MEL NZ), Contact Energy (CEN NZ), Verbund AG (VER AV), Innergex Renewable Energy (INE CN), Cia Energetica De-Spon Adr (CIG US), Boralex Inc (BLX CN) and Scatec Solar ASA (SSO NO).Among the current index constituents, there will be buying on Orsted A/S (ORSTED DC) and Vestas Wind Systems A/S (VWS DC).We recommend buying the surprise inclusions and unwinding the positions by implementation date. A lot of the stocks that will have a reduction in index weight have been sold off over the last few months and the active positions will be covered leading up to implementation date - we recommend buying these stocks in the days leading up to implementation date since the stocks could rally once the overhang of passive selling has been removed.

Global Clean Energy Index: 52 Adds, 55% Index Turnover, US$12bn to Trade

Equity Bottom-Up

The biggest gainers this morning are:

Hansol Chemical (014680 KS): +8.00%

DL Co Ltd (000210 KS): +7.78%

Kcc Corp (002380 KS): +7.58%

Hanwha Solutions (009830 KS): +7.56%













Gainers
Daily Δ
Losers
Daily Δ
x Open
Value
TV/DTV (x)
Value


Hansol Chemical Co Ltd
8.00%
Dong Suh Companies Inc
-5.67%
Dongwon Systems Corp
10.87%
KCC Corp
3.26


DL Holdings Co Ltd
7.78%
Chong Kun Dang Pharmaceutical Corp
-3.90%
Hansol Chemical Co Ltd
10.00%
Doosan Infracore Co Ltd
2.96


KCC Corp
7.58%
Dongwon Systems Corp
-3.37%
Dong Suh Companies Inc
8.22%
LOTTE Himart Co Ltd
2.94


SKC Co Ltd
7.56%
Oci Co Ltd
-2.65%
KCC Corp
7.82%
Hanwha Solutions Corp
2.57


Hanwha Solutions Corp
7.11%
Lotte Tour Development Co., Ltd.
-2.48%
SKC Co Ltd
7.52%
CJ Logistics Corp
1.68


LOTTE Himart Co Ltd
6.49%
Green Cross Holdings
-2.46%
LOTTE Himart Co Ltd
6.88%
Samsung Heavy Industries Co.,Ltd
1.63


Doosan Infracore Co Ltd
5.24%
Hanssem Co Ltd
-2.30%
Hanwha Solutions Corp
6.76%
LG HAUSYS, LTD.
1.44


Hyundai Steel Co
4.95%
Green Cross Corp
-2.05%
Hyundai Steel Co
6.49%
Dongwon Systems Corp
1.42


SK Holdings Co Ltd
4.30%
Korea Aerospace Industries Ltd
-2.01%
HMM Co Ltd
6.20%
Doubleu Games Co Ltd
1.42


Samsung C&amp;T Corp
4.22%
Cuckoo Holdings Co Ltd
-2.00%
Chong Kun Dang Pharmaceutical Corp
5.71%
Lotte Chilsung Beverage Co Ltd
1.41


Lotte Shopping Co Ltd
4.13%
Cuckoo Homesys Co Ltd
-1.93%
DL Holdings Co Ltd
5.69%
DL Holdings Co Ltd
1.29


Lotte Chilsung Beverage Co Ltd
4.07%
Ilyang Pharmaceutical Co., Ltd
-1.90%
Kolon Industries Inc
5.59%
SKC Co Ltd
1.23


Posco International Corp
4.01%
Boryung Pharmaceutical Co., Ltd
-1.82%
Handsome Corp
5.51%
Hyundai Steel Co
1.13


Shinsegae Inc
3.89%
CJ Cheiljedang Corp
-1.75%
SK Holdings Co Ltd
5.33%
Kolon Industries Inc
1.08


Handsome Corp
3.76%
NCSoft Corp
-1.60%
Doosan Infracore Co Ltd
5.20%
Hansol Chemical Co Ltd
1.01


KB Financial Group Inc
3.73%
Naver Corp
-1.55%
Shinsegae Inc
5.19%
JW Pharmaceutical Corp
0.94


SK Innovation Co Ltd
2.93%
JW Pharmaceutical Corp
-1.50%
Dongkuk Steel Mill Co., Ltd
5.02%
Ssangyong Cement Industry Co Ltd
0.92


LG International Corp
2.83%
DB HiTek Co Ltd
-1.45%
KB Financial Group Inc
4.92%
KEPCO Plant Service &amp; Engineering Co Ltd
0.91


Shinhan Financial Group Co., Ltd.
2.71%
SK Biopharmaceuticals Co Ltd
-1.41%
Posco International Corp
4.71%
Handsome Corp
0.89


LG HAUSYS, LTD.
2.57%
Daewoong Pharmaceutical Co., Ltd.
-1.16%
Pan Ocean Co Ltd
4.69%
IS DONGSEO CO., LTD.
0.85

Source: KRX

















Top 20
52WH
52WH Date
MC (₩B)
Daily Δ
x Open
TV/DTV
x 52WL
U Wick
Body
L Wick


Kolon Industries Inc
1.04
3/23/21
1,678.1
1.97%
5.59%
1.08
2.59
-52.94%
41.18%
5.88%


KT Corp
1.02
2/17/21
7,285.0
0.72%
1.62%
0.55
1.45
-11.11%
44.44%
44.44%


Amorepacific Corp
1.02
1/25/21
15,082.3
0.78%
3.15%
0.68
1.73
-37.50%
50.00%
12.50%


Handsome Corp
1.01
3/17/21
1,018.5
3.76%
5.51%
0.89
2.30
-34.09%
65.91%
0.00%


Doosan Bobcat Inc
0.99
3/17/21
3,669.1
1.95%
2.64%
0.43
2.23
-5.26%
63.16%
31.58%


KB Financial Group Inc
0.99
3/11/21
21,996.2
3.73%
4.92%
0.55
1.73
-4.00%
84.00%
12.00%


Cosmax Inc
0.98
10/12/20
1,261.2
2.45%
4.51%
0.46
1.84
-18.18%
63.64%
18.18%


HMM Co Ltd
0.98
3/23/21
9,625.2
-0.17%
6.20%
0.72
11.59
-8.11%
-40.54%
51.35%


KCC Corp
0.97
1/26/21
1,955.0
7.58%
7.82%
3.26
1.86
0.00%
96.88%
3.13%


Seah Besteel Corporation
0.97
3/23/21
615.0
1.48%
3.26%
0.26
2.56
-18.18%
54.55%
27.27%


Lotte Chilsung Beverage Co Ltd
0.97
2/9/21
1,148.8
4.07%
4.03%
1.41
1.54
0.00%
80.00%
20.00%


Kangwon Land, Inc.
0.97
3/18/21
5,658.7
0.57%
1.53%
0.24
1.49
-12.50%
87.50%
0.00%


Shinsegae International Inc
0.96
4/28/20
1,513.7
1.44%
2.90%
0.41
1.58
-16.67%
83.33%
0.00%


Dongkuk Steel Mill Co., Ltd
0.96
3/23/21
1,078.4
2.26%
5.02%
0.30
3.29
-27.27%
63.64%
9.09%


Hotel Shilla Co Ltd
0.96
1/18/21
3,430.3
1.39%
2.21%
0.40
1.33
-10.53%
78.95%
10.53%


MERITZ SECURITIES CO LTD
0.96
3/23/21
2,947.2
0.00%
2.30%
0.49
1.78
-5.00%
20.00%
75.00%


BNK Financial Group Inc
0.96
3/19/21
2,180.5
2.14%
3.37%
0.33
1.66
-9.09%
72.73%
18.18%


Hana Financial Group Inc
0.96
3/19/21
12,294.9
0.00%
3.35%
0.56
1.95
-25.93%
44.44%
29.63%


Hansol Chemical Co Ltd
0.95
2/22/21
2,754.5
8.00%
10.00%
1.01
3.38
-11.11%
80.00%
8.89%


Doosan Infracore Co Ltd
0.95
9/28/20
2,176.5
5.24%
5.20%
2.96
3.50
-10.00%
86.00%
4.00%

Source: KRX



Hanwha S, DL, KCC, & Hansol C Are KOSPI 200 Movers Today: What Happens?

South Korea

Hanwha Solution Corporation is a chemical manufacturer.  The Company's products include a line of chlorine alkali chemicals, such as caustic soda, chlorine, and hydrochloric acid.  Hanwha also produces resins including low density polyethylene (LDPE) and polyvinyl chloride (PVC).

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Hanwha Solutions (009830 KS)

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