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>The three Celltrion companies are showing the same pattern of boosting share prices towards the yearend T-1 ex-date. This isn't unique to Celltrion, but the intensity is high for them.</li>
<li>Celltrion's yearend dividend effect has an inverse correlation with the market's overall performance. Fortunately, this year's market-wide performance was the worst in the past five years.</li>
<li>For this year, the dividend yield isn't bad either, swing on Dec 17 to T-1 ex-date or day trade on T-1 ex-date should provide juicy returns based on past patterns.</li>
</ul>


The three Celltrion companies are showing the same pattern of boosting share prices towards the yearend T-1 ex-date. This isn't unique to Celltrion, but the intensity is high for them.
Celltrion's yearend dividend effect has an inverse correlation with the market's overall performance. Fortunately, this year's market-wide performance was the worst in the past five years.
For this year, the dividend yield isn't bad either, swing on Dec 17 to T-1 ex-date or day trade on T-1 ex-date should provide juicy returns based on past patterns.


Celltrion Siblings Announced Dividends: Trading Based on Past Patterns

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm all announced much higher dividend payments for this year as compared to last year. </li>
<li>Based on the new dividend payments, the dividend yields are as follows: (Celltrion Inc - 4.2%, Celltrion Healthcare - 4.2%, and Celltrion Pharm - 5%). </li>
<li>Merger of three companies is likely to have long-term positive impact on the their share prices. Although exact timing is uncertain, 2023 could be the year of this merger. </li>
</ul>


Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm all announced much higher dividend payments for this year as compared to last year. 
Based on the new dividend payments, the dividend yields are as follows: (Celltrion Inc - 4.2%, Celltrion Healthcare - 4.2%, and Celltrion Pharm - 5%). 
Merger of three companies is likely to have long-term positive impact on the their share prices. Although exact timing is uncertain, 2023 could be the year of this merger. 


Celltrion Group Companies - Sharp Increase in Dividends

<ul>
<li>After the market close today, it was announced that ION Investment will partially sell its stakes in Celltrion and Celltrion Healthcare for about 560 billion won in a block deal.</li>
<li>The block deal price ranges are at 6 to 9 percent discount to current prices of Celltrion and Celltrion Healthcare.</li>
<li>We would take this take this deal due to settling of the accounting issue, more reasonable valuations, and sizeable block deal discount range. </li>
</ul>


After the market close today, it was announced that ION Investment will partially sell its stakes in Celltrion and Celltrion Healthcare for about 560 billion won in a block deal.
The block deal price ranges are at 6 to 9 percent discount to current prices of Celltrion and Celltrion Healthcare.
We would take this take this deal due to settling of the accounting issue, more reasonable valuations, and sizeable block deal discount range. 


Block Deal Sale of Celltrion & Celltrion Healthcare by ION Investment

Equity Bottom-Up

<ul>
<li>On 11 March 2022, the Celltrion Group was acquitted of intentional accounting fraud by the Korean financial authorities after more than four years of investigation.</li>
<li>This is likely to result in a major positive boost on the shares of Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm in the next several weeks.</li>
<li>We note that the decision about the Celltrion Group was announced on 11 March, one day after Yoon Suk-Yeol was declared to become the next President of South Korea.</li>
</ul>


On 11 March 2022, the Celltrion Group was acquitted of intentional accounting fraud by the Korean financial authorities after more than four years of investigation.
This is likely to result in a major positive boost on the shares of Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm in the next several weeks.
We note that the decision about the Celltrion Group was announced on 11 March, one day after Yoon Suk-Yeol was declared to become the next President of South Korea.


Celltrion Inc: Acquitted of Intentional Accounting Fraud by the Korean Financial Authorities

<ul>
<li>For this March rebalancing, the screening base date is January 28, which is the last trading day of January. So, the 3-month rebalancing review period is now done.</li>
<li>Other than LG Energy (+₩146,2B), we should pay the most attention to AfreecaTV (+1.70x), Chunbo (+0.36x), Douzone Bizon (-4.82x), and SoulBrain (-0.99x).</li>
<li>In addition, large-cap stocks such as SKIET (+0.25x), Ecopro BM (+0.10x), LG Chem (-0.62x), and Posco Chemical (-0.30x) will likely draw much attention.</li>
</ul>


For this March rebalancing, the screening base date is January 28, which is the last trading day of January. So, the 3-month rebalancing review period is now done.
Other than LG Energy (+₩146,2B), we should pay the most attention to AfreecaTV (+1.70x), Chunbo (+0.36x), Douzone Bizon (-4.82x), and SoulBrain (-0.99x).
In addition, large-cap stocks such as SKIET (+0.25x), Ecopro BM (+0.10x), LG Chem (-0.62x), and Posco Chemical (-0.30x) will likely draw much attention.


KRX K-New Deal Index Screening Period Ended: Rebalancing Changes & Passive Impacts Update

South Korea

Celltrion Pharm Inc. manufactures and sells pharmaceutical products.  The Company products inclue drugs for for hepatic diseases, digestion, diabetes, cold and fever, anti-inflammatory, and veterinary medical products.  Celltrion also provides pharmaceutical raw materials.

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Celltrion Pharm (068760 KS)

Celltrion Siblings Announced Dividends: Trading Based on Past Patterns

The three Celltrion companies all announced yearend dividends last Friday after the market closed. This post investigates past patterns for how we...

Sanghyun Park

Celltrion Group Companies - Sharp Increase in Dividends

Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm all announced much higher dividend payments for this year as compared to last year.

Douglas Kim

Block Deal Sale of Celltrion & Celltrion Healthcare by ION Investment

It was announced that ION Investment will partially sell its stakes in Celltrion and Celltrion Healthcare for about 560 billion won in a block...

Douglas Kim

Celltrion Inc: Acquitted of Intentional Accounting Fraud by the Korean Financial Authorities

On 11 March 2022, the Celltrion Group was acquitted of intentional accounting fraud by the Korean financial authorities after more than four years...

Douglas Kim

KRX K-New Deal Index Screening Period Ended: Rebalancing Changes & Passive Impacts Update

The KRX K-New Deal Index's screening period ended last Friday. This post updates the screening results and passive impacts.

Sanghyun Park

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