Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023.</li>
<li>Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.</li>
<li>We highlight 33 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 1Q 2023.
Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.
We highlight 33 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023

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.

Event-Driven

<ul>
<li>Last year, NPS raised the weighting of defense, renewables, and reopening (entertainment and leisure) stocks. In contrast, NPS mainly reduced exposure to construction, banking, and semiconductors.</li>
<li>In December, NPS is building a fairly aggressive long position in China Reopening. In addition, trading assumed to be portfolio rebalancing for the local chemical sector was detected.</li>
<li>NPS' stake in most major holdings exceeds 5%. This allows us to monitor NPS' trading history almost in real time through KRX FAIR.</li>
</ul>


Last year, NPS raised the weighting of defense, renewables, and reopening (entertainment and leisure) stocks. In contrast, NPS mainly reduced exposure to construction, banking, and semiconductors.
In December, NPS is building a fairly aggressive long position in China Reopening. In addition, trading assumed to be portfolio rebalancing for the local chemical sector was detected.
NPS' stake in most major holdings exceeds 5%. This allows us to monitor NPS' trading history almost in real time through KRX FAIR.


Backtracing Korea NPS Trades on Local Stocks Through KRX FAIR

<ul>
<li>In this insight, we discuss a list of 60 stocks in Korea where NPS recently added or reduced 1% or more stake (27 adds and 33 reduce). </li>
<li>Among the stocks NPS increased its stake, many of them are clear beneficiaries of the end of zero COVID policies in China including Hotel Shilla, Amorepacific Corp, and GKL. </li>
<li>Among the top market cap stocks where the NPS decreased its stake by 1% or more, they include Lg Innotek, Hyundai E&amp;C, Hyundai Mipo, and Posco International. </li>
</ul>


In this insight, we discuss a list of 60 stocks in Korea where NPS recently added or reduced 1% or more stake (27 adds and 33 reduce). 
Among the stocks NPS increased its stake, many of them are clear beneficiaries of the end of zero COVID policies in China including Hotel Shilla, Amorepacific Corp, and GKL. 
Among the top market cap stocks where the NPS decreased its stake by 1% or more, they include Lg Innotek, Hyundai E&amp;C, Hyundai Mipo, and Posco International. 


<ul>
<li>We believe that there is finally some light showing at the end of the dark tunnel for the two leading Korean cosmetics companies LG H&amp;H and Amorepacific Corp.</li>
<li>These two stocks have underperformed the market in the past year but have started to outperform the market in the past three weeks. </li>
<li>There are credible signs that indoor mask wearing in Korea will be eliminated in Korea on/near March 2023 and that the inbound visitors to Korea will continue to increase significantly.</li>
</ul>


We believe that there is finally some light showing at the end of the dark tunnel for the two leading Korean cosmetics companies LG H&amp;H and Amorepacific Corp.
These two stocks have underperformed the market in the past year but have started to outperform the market in the past three weeks. 
There are credible signs that indoor mask wearing in Korea will be eliminated in Korea on/near March 2023 and that the inbound visitors to Korea will continue to increase significantly.


Light at the End of the Dark Tunnel for Korean Cosmetics?

Cross Asset Strategy

<ul>
<li>In the past several days, one of the biggest news in Asia has been whether the Chinese government may be willing to change its stance on the zero COVID policies.</li>
<li>So far, the Chinese government has not proclaimed any official statement on ending the zero COVID policies. </li>
<li>Although we do not have a crystal ball on the Chinese government's COVID policies, there are increasing probabilities of a major loosening the COVID restrictions in China next year.</li>
</ul>


In the past several days, one of the biggest news in Asia has been whether the Chinese government may be willing to change its stance on the zero COVID policies.
So far, the Chinese government has not proclaimed any official statement on ending the zero COVID policies. 
Although we do not have a crystal ball on the Chinese government's COVID policies, there are increasing probabilities of a major loosening the COVID restrictions in China next year.


China's Zero COVID Policy: Confusions Remain on Exact Reopening Timeline - Impact on Korean Stocks

South Korea

Amorepacific Corp. develops, manufactures, and exports skin care, make-up, and fragrance products. The Company also produces and markets personal care and health-related products, such as shampoos, soaps, toothpastes, and health teas.

Amorepacific Corp (Preferred) (090435 KS)

Price Gauge
52-week Range	0.00 - 0.00
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Amorepacific Corp (Preferred) (090435 KS)

Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023. We highlight 33 pair trades that...

Douglas Kim

Backtracing Korea NPS Trades on Local Stocks Through KRX FAIR

This post details how to monitor NPS trades through the KRX FAIR website and discusses the recent noteworthy trade patterns.

Sanghyun Park

What Is NPS Buying & Selling?

In this insight, we discuss a list of 60 stocks in Korea where NPS recently added or reduced 1% or more stake (27 adds and 33 reduce).

Douglas Kim

Light at the End of the Dark Tunnel for Korean Cosmetics?

We believe that there is finally some light showing at the end of the dark tunnel for the two leading Korean cosmetics companies LG H&H and...

Douglas Kim

China's Zero COVID Policy: Confusions Remain on Exact Reopening Timeline - Impact on Korean Stocks

As a result of news of China potentially reopening its economy with reduced COVID restrictions sometime in 2023, the major reopening plays in Korea...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)