Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

<p>Today is the first lock-up expiry day (15D).</p><table class="table table-striped">
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<col width="100">
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<td data-sheets-value='{"1":2,"2":"Lock-up"}'>Lock-up</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Qty."}'>Qty.</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% of SO"}'>% of SO</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% of SO+RCPS"}'>% of SO+RCPS</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Resumption"}'>Resumption</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"15 days"}' data-sheets-formula="=Bookbuilding!R[90]C[0]"><strong>15 days</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":205463}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=Bookbuilding!R[90]C[0]"><strong>205,463</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0060704908841739125}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=Bookbuilding!R[90]C[0]"><strong>0.61%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.005767583208510275}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula='=R[0]C[-2]/(googlefinance(R49C2, "shares")+R73C2)'><strong>0.58%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44134}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"m\". \"d","3":1}'><strong>2020. 10. 30</strong></td>
</tr>
<tr><td colspan="5" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>Unsurprisingly, the shares are again taking a hit as the price loses 5% this morning.</p><p>It is now 58% down from the peak reached on the market debut day.</p><table class="table table-striped">
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<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Status (₩B)"}'>Status (₩B)</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Big Hit Entertainment Co Ltd"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "name")'>Big Hit Entertainment Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"352820"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='="352820"'>352820</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Market cap"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>Market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5026.159512}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[1]C[0]*R[9]C[0]/1000000000">5,026.2</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Price"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>Price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":148500}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "price")'>₩148,500</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Previous"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>- Previous</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":157000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "closeyest")'>₩157,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.054140127388535034}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R5C[-1]-R[0]C[-1])/R[0]C[-1]">-5.41%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Open"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>- Open</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":149000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "priceopen")'>₩149,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.003355704697986577}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R5C[-1]-R[0]C[-1])/R[0]C[-1]">-0.34%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - High"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>- High</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":151500}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "high")'>₩151,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.019801980198019802}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R5C[-1]-R[0]C[-1])/R[0]C[-1]">-1.98%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Low"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>- Low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":147000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "low")'>₩147,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.01020408163265306}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R5C[-1]-R[0]C[-1])/R[0]C[-1]">1.02%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"52W high"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>52W high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":351000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "high52")'>₩351,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.5769230769230769}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R5C[-1]-R[0]C[-1])/R[0]C[-1]">-57.69%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"52W low"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>52W low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":147000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "low52")'>₩147,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.01020408163265306}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R5C[-1]-R[0]C[-1])/R[0]C[-1]">1.02%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Trading volume"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>Trading volume</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":546352}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "volume")'>546,352</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - SO"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>- SO</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":33846192}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "shares")'>33,846,192</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of SO"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>- % of SO</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.01614219998515638}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-2]C[0]/R[-1]C[0]">1.61%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Trading value"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>Trading value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":81.133272}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[-3]C[0]*R[-10]C[0]/1000000000">81.1</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"DTV"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>DTV</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2107326}' data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-formula='=googlefinance(R3C[0], "volumeavg")'>2,107,326</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Value"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>- Value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":312.937911}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[-1]C[0]*R[-12]C[0]/1000000000">312.9</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of SO"}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>- % of SO</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.062261834359386724}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-2]C[0]/R[-5]C[0]">6.23%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>-</td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX &amp; Google Finance"}'>Source: KRX &amp; Google Finance</td></tr>
</tbody>
</table><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/168/405/original/smartkarma_download.png?1604023183" class="editor-image img-responsive" data-smartkarma-image-id="168405"></figure></section><p>But the bashing seems to be settling at a ₩150,000 level, a market cap of ₩5T.</p><p>PER-wise, it is still twice more expensive than direct local peers. But it came down to a level in line with Kakao, which appears to be a short-term support zone. </p><table class="table table-striped">
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<td data-sheets-value='{"1":2,"2":"12M PER (₩B)"}'>12M forward PER (₩B)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"12M PER (x)"}'>12M PER (x)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"MC"}'>MC</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SM Entertainment Co Ltd"}' data-sheets-formula="=R[-16]C[0]">SM Entertainment Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"041510"}' data-sheets-formula="=R[-16]C[8]">041510</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":25.13}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[-16]C[8]">25.13</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":29250}' data-sheets-numberformat='[null,4,"[$₩]#,##0",1]' data-sheets-formula="=R[-16]C[5]">₩29,250</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":684.7400292}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula='=googlefinance(R[-16]C[5], "marketcap")/1000000000'>684.7</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"YG Entertainment Inc"}' data-sheets-formula="=R[-16]C[0]">YG Entertainment Inc</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"122870"}' data-sheets-formula="=R[-16]C[8]">122870</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":35.22}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[-16]C[8]">35.22</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":40050}' data-sheets-numberformat='[null,4,"[$₩]#,##0",1]' data-sheets-formula="=R[-16]C[5]">₩40,050</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":737.358948}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula='=googlefinance(R[-16]C[5], "marketcap")/1000000000'>737.4</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"JYP Entertainment Corp"}' data-sheets-formula="=R[-16]C[0]">JYP Entertainment Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"035900"}' data-sheets-formula="=R[-16]C[8]">035900</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":31.66}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[-16]C[8]">31.66</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":31400}' data-sheets-numberformat='[null,4,"[$₩]#,##0",1]' data-sheets-formula="=R[-16]C[5]">₩31,400</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1116.3961234}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula='=googlefinance(R[-16]C[5], "marketcap")/1000000000'>1,116.4</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Average"}'>- Average</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":30.669999999999998}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=average(R[-3]C[0]:R[-1]C[0])">30.67</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Naver Corp"}' data-sheets-formula="=R[7]C[0]">Naver Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"035420"}' data-sheets-formula="=R[14]C[8]">035420</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":39.57}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[14]C[8]">39.57</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":293000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[14]C[5]">₩293,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":48211.3064325}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula='=googlefinance(R[14]C[5], "marketcap")/1000000000'>48,211.3</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kakao Corp"}' data-sheets-formula="=R[7]C[0]"><strong>Kakao Corp</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"035720"}' data-sheets-formula="=R[14]C[8]"><strong>035720</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":62.46}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[14]C[8]"><strong>62.46</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":336500}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[14]C[5]"><strong>₩336,500</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":29695.39143}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula='=googlefinance(R[14]C[5], "marketcap")/1000000000'><strong>29,695.4</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Average"}'>- Average</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":51.015}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=average(R[-2]C[0]:R[-1]C[0])">51.02</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Big Hit"}'><strong>Big Hit</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"352820"}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=Terms!R[-22]C[0]"><strong>352820</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":60.923145600000005}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[0]C[1]/R13C8"><strong>60.92</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":148500}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=Misc!R[33]C[-2]"><strong>₩148,500</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5026.159512}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula="=Misc!R[33]C[-2]"><strong>5,026.2</strong></td>
</tr>
<tr><td colspan="5" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX &amp; FnGuide"}'>Source: KRX &amp; FnGuide</td></tr>
</tbody>
</table>

Today is the first lock-up expiry day (15D).









Lock-up
Qty.
% of SO
% of SO+RCPS
Resumption


15 days
205,463
0.61%
0.58%
2020. 10. 30

Source: KRX

Unsurprisingly, the shares are again taking a hit as the price loses 5% this morning.It is now 58% down from the peak reached on the market debut day.






Status (₩B)

Name
Big Hit Entertainment Co Ltd
-


Ticker
352820
-


Market cap
5,026.2
-


Price
₩148,500
-


- Previous
₩157,000
-5.41%


- Open
₩149,000
-0.34%


- High
₩151,500
-1.98%


- Low
₩147,000
1.02%


52W high
₩351,000
-57.69%


52W low
₩147,000
1.02%


Trading volume
546,352
-


- SO
33,846,192
-


- % of SO
1.61%
-


Trading value
81.1
-


DTV
2,107,326
-


- Value
312.9
-


- % of SO
6.23%
-

Source: KRX &amp; Google Finance

But the bashing seems to be settling at a ₩150,000 level, a market cap of ₩5T.PER-wise, it is still twice more expensive than direct local peers. But it came down to a level in line with Kakao, which appears to be a short-term support zone. 









12M forward PER (₩B)
Ticker
12M PER (x)
Price
MC


SM Entertainment Co Ltd
041510
25.13
₩29,250
684.7


YG Entertainment Inc
122870
35.22
₩40,050
737.4


JYP Entertainment Corp
035900
31.66
₩31,400
1,116.4


- Average
-
30.67
-
-


Naver Corp
035420
39.57
₩293,000
48,211.3


Kakao Corp
035720
62.46
₩336,500
29,695.4


- Average
-
51.02
-
-


Big Hit
352820
60.92
₩148,500
5,026.2

Source: KRX &amp; FnGuide



Big Hit: Fast Entry into KOSPI 200 & Lock-Up Expiries (Incl. RCPS)

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<p>The Korea Exchange (KRX) will announce the results of the December 2020 review of the <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> in November. The constituent changes will be effective from the open on 11 December 2020 and the rebalancing trades will need to be done at the closing auction on 10 December 2020.</p><p>At the current time, we see nine stocks being added to and deleted from the index with another three stocks as very close adds and deletes. There could be an additional change with <a href="https://www.smartkarma.com/entities/big-hit-entertainment" target="_blank" data-smartkarma-citation="entities:28959:1" rel="noopener">Big Hit Entertainment (352820 KS)</a> getting index inclusion as a Fast Entry - this change could be announced ahead of the regular review announcement or as a part of the regular announcement, though the implementation will be at the same time as the December review.</p><p>The potential inclusions have outperformed the potential exclusions by a wide margin over the last 6 months though the performance has been subdued over the last 2 months. With the short sell ban still in force, we could see the potential inclusions continue to outperform the potential exclusions after this period of consolidation, especially once the announcement of the changes has been made.</p><p>In the Insight, we look at the expected changes, the impact of the changes on the stocks, the performance of the stocks and the short interest, the behaviour of the inclusions/exclusions at the June review and recommend some trades going forward.</p>

The Korea Exchange (KRX) will announce the results of the December 2020 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in November. The constituent changes will be effective from the open on 11 December 2020 and the rebalancing trades will need to be done at the closing auction on 10 December 2020.At the current time, we see nine stocks being added to and deleted from the index with another three stocks as very close adds and deletes. There could be an additional change with Big Hit Entertainment (352820 KS) getting index inclusion as a Fast Entry - this change could be announced ahead of the regular review announcement or as a part of the regular announcement, though the implementation will be at the same time as the December review.The potential inclusions have outperformed the potential exclusions by a wide margin over the last 6 months though the performance has been subdued over the last 2 months. With the short sell ban still in force, we could see the potential inclusions continue to outperform the potential exclusions after this period of consolidation, especially once the announcement of the changes has been made.In the Insight, we look at the expected changes, the impact of the changes on the stocks, the performance of the stocks and the short interest, the behaviour of the inclusions/exclusions at the June review and recommend some trades going forward.

KOSPI200 Index Rebalance Preview: Review Period Nearly Complete, Nine (Or Ten) Possible Changes

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<p>In this insight, we provide a preview of Big Hit Entertainment's 3Q 2020 earnings as well as a trading strategy post end of the lock-up period. Big Hit Entertainment has been one of the most hyped IPOs in Korea this year.</p><h3>Drifting lower to our target price </h3><p>Our one-year target price for Big Hit Entertainment remains 132,429 won, which is 2% lower than the IPO price and 30% lower than the current price. We continue to believe that the market is mispricing Big Hit right now and that it is likely to decline further. However, over the next 3-4 weeks, there could be some positive pressure from the addition to the KOSPI200 Fast Entry but the bigger problem could be the selling from the ending of the one-month lock-up. </p>

In this insight, we provide a preview of Big Hit Entertainment's 3Q 2020 earnings as well as a trading strategy post end of the lock-up period. Big Hit Entertainment has been one of the most hyped IPOs in Korea this year.Drifting lower to our target price Our one-year target price for Big Hit Entertainment remains 132,429 won, which is 2% lower than the IPO price and 30% lower than the current price. We continue to believe that the market is mispricing Big Hit right now and that it is likely to decline further. However, over the next 3-4 weeks, there could be some positive pressure from the addition to the KOSPI200 Fast Entry but the bigger problem could be the selling from the ending of the one-month lock-up. 

Big Hit Entertainment: Trading Strategy Post End of Lockup, KOSPI200 Fast Entry, & 3Q 2020 Earnings

Equity Capital Markets

<p>Big Hit doubled the IPO price at the opening on this market debut day.</p><p>It then immediately hit the daily ceiling (30%). But the glory didn't last long. It now falls back to ₩278,000, only +3% from the opening price.</p><p>It sits on a market cap of ₩9.4T, taking the 31st spot on KOSPI.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Big Hit Ent. (₩B)"}'>Big Hit Ent. market debut performance (₩B)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"MC"}'>MC</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ranking"}'>Ranking</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"IPO price"}'>IPO price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":135000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=Pricing!R[-53]C[2]">₩135,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4569.23592}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula="=R[0]C[-1]*Terms!R46C4/1000000000">4,569.2</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Opening"}'>Opening</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":270000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩270,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9138.47184}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula="=R[0]C[-1]*Terms!R46C4/1000000000">9,138.5</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Daily high"}'>Daily high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":351000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩351,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11880.013392}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula="=R[0]C[-1]*Terms!R46C4/1000000000">11,880.0</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current"}'>Current</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":278000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩278,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9409.241376}' data-sheets-numberformat='[null,2,"#,##0.0"]' data-sheets-formula="=R[0]C[-1]*Terms!R46C4/1000000000">9,409.2</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":31}'>31</td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>The final allocation number to overseas institutions was 1,431,617, representing 4.23% of SO and 20.08% of the IPO. The initial estimate was 1.1M. So, it may explain a more aggressive selling force than initially anticipated this morning.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Allocation by type (₩B)"}'>Allocation by type (₩B)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Qty. - initial"}'>Qty. - initial</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% - initial"}'>% - initial</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Qty. - final"}'>Qty. - final</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% - final"}'>% - final</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Institutional"}'>Institutional</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4278000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=Terms!R8C2*0.6">4,278,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">60.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4282309}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[0]C[-2]+(R[4]C[-2]-R[4]C[0])">4,282,309</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.600604347826087}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">60.06%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Local (est.)"}'>- Local (est.)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,2,"#,##0",1]'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,2,"#,##0",1]'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2850692}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[-1]C[0]-R[1]C[0]">2,850,692</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.39981654978962133}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">39.98%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Overseas (est.)"}'><strong>- Overseas (est.)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>-</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>-</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1431617}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>1,431,617</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.20078779803646563}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2"><strong>20.08%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Retail"}'>Retail</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1426000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=Terms!R8C2*0.2">1,426,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">20.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1426000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[2]C[-2]-R[-3]C[0]-R[1]C[0]">1,426,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">20.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"ESOP"}'>ESOP</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1426000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=Terms!R8C2*0.2">1,426,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">20.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1421691}' data-sheets-numberformat='[null,2,"#,##0",1]'>1,421,691</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.19939565217391306}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">19.94%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total"}'>Total</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7130000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=Terms!R[-139]C[0]">7,130,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">100.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7130000}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[-5]C[0]+R[-2]C[0]+R[-1]C[0]">7,130,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[0]C[-1]/Terms!R8C2">100.00%</td>
</tr>
<tr><td colspan="5" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

Big Hit doubled the IPO price at the opening on this market debut day.It then immediately hit the daily ceiling (30%). But the glory didn't last long. It now falls back to ₩278,000, only +3% from the opening price.It sits on a market cap of ₩9.4T, taking the 31st spot on KOSPI.








Big Hit Ent. market debut performance (₩B)
Price
MC
Ranking


IPO price
₩135,000
4,569.2
-


Opening
₩270,000
9,138.5
-


Daily high
₩351,000
11,880.0
-


Current
₩278,000
9,409.2
31

Source: KRX

The final allocation number to overseas institutions was 1,431,617, representing 4.23% of SO and 20.08% of the IPO. The initial estimate was 1.1M. So, it may explain a more aggressive selling force than initially anticipated this morning.









Allocation by type (₩B)
Qty. - initial
% - initial
Qty. - final
% - final


Institutional
4,278,000
60.00%
4,282,309
60.06%


- Local (est.)
-
-
2,850,692
39.98%


- Overseas (est.)
-
-
1,431,617
20.08%


Retail
1,426,000
20.00%
1,426,000
20.00%


ESOP
1,426,000
20.00%
1,421,691
19.94%


Total
7,130,000
100.00%
7,130,000
100.00%

Source: DART



Big Hit First Trading Day: Market Reception & Immediate-Term Ceiling Price

<div class="content-highlight"><p>The Big Hit Entertainment IPO starts trading this week on 15 October. It was reported today in numerous<a href="https://www.globaltimes.cn/content/1203171.shtml" target="_blank" rel="noopener"> media</a> that Samsung has removed BTS related products from its official stores on Chinese e-commerce platforms. Well, apparently this news is really getting out of hand. All the major local media outlets in Korea including <a href="https://www.yna.co.kr/view/AKR20201012108900083?input=1195m" target="_blank" rel="noopener">YTN, </a><a href="https://www.chosun.com/international/china/2020/10/12/6RFKE7KJ6FEXFM6GB6Z24PCEGY/?utm_source=naver&amp;utm_medium=original&amp;utm_campaign=news" target="_blank" rel="noopener">Chosun</a>, and <a href="https://news.joins.com/article/23892128" target="_blank" rel="noopener">Joongang</a> have reported on this news. </p></div>

The Big Hit Entertainment IPO starts trading this week on 15 October. It was reported today in numerous media that Samsung has removed BTS related products from its official stores on Chinese e-commerce platforms. Well, apparently this news is really getting out of hand. All the major local media outlets in Korea including YTN, Chosun, and Joongang have reported on this news. 

BTS' Political Remarks Anger Thousands of Chinese Fans

South Korea

HYBE Co., Ltd. operates as an entertainment company. The Company provides music production, album distribution, entertainers management, publicity, planning, training, and other services. HYBE also makes television shows.

Price Gauge
52-week Range	0.00 - 0.00
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HYBE (352820 KS)

Big Hit: Fast Entry into KOSPI 200 & Lock-Up Expiries (Incl. RCPS)

We can now safely say that Big Hit's KOSPI 200 fast entry is a done deal. An inflow estimate is ₩100B, 2% of the current MC. But a series of lock...

Sanghyun Park

KOSPI200 Index Rebalance Preview: Review Period Nearly Complete, Nine (Or Ten) Possible Changes

The KOSPI200 index review will be announced in the next 4 weeks. We see 9 inclusions/ exclusions and significant volume to sell on the deletions....

Brian Freitas

Big Hit Entertainment: Trading Strategy Post End of Lockup, KOSPI200 Fast Entry, & 3Q 2020 Earnings

In this insight, we provide a preview of Big Hit Entertainment's 3Q 2020 earnings as well as a trading strategy post end of the lock-up period and...

Douglas Kim

Big Hit First Trading Day: Market Reception & Immediate-Term Ceiling Price

It appears that Big Hit's main selling point, WEVERSE (the online community platform), isn't selling very well in the market at large. So, we...

Sanghyun Park

BTS' Political Remarks Anger Thousands of Chinese Fans

It was reported today in numerous media that Samsung has removed all BTS related products from its official stores on Chinese e-commerce platforms.

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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