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>WISE Media Contents rebalances every quarter in January, April, July, and October. The effective date for the upcoming rebalancing is April 15.</li>
<li>The gap between the rebalancing weight change estimations based on the float-adjusted market caps and the actual implementation of the ETF operator (TIGER) is not significant.</li>
<li>Following stocks are worth paying attention: (Short) Jyp Entertainment, S.M.Entertainment, Studio Dragon, Jcontentree, and SBS Contents Hub / (Long) CJ ENM, DearU, D&amp;C Media, Genie Music, and IHQ</li>
</ul>


WISE Media Contents rebalances every quarter in January, April, July, and October. The effective date for the upcoming rebalancing is April 15.
The gap between the rebalancing weight change estimations based on the float-adjusted market caps and the actual implementation of the ETF operator (TIGER) is not significant.
Following stocks are worth paying attention: (Short) Jyp Entertainment, S.M.Entertainment, Studio Dragon, Jcontentree, and SBS Contents Hub / (Long) CJ ENM, DearU, D&amp;C Media, Genie Music, and IHQ


WISE Media Contents (TIGER ETF) Rebalancing Preview

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>In this insight, we discuss the <strong>'Save KOSPI'</strong> campaign which is a set of eight proposals made by the senior leaders at Korea Corporate Governance Forum and Uprise Co. (Heybit). </li>
<li>We think that the Save KOSPI campaign is an interesting movement that is worth paying attention since it appears to be gaining increasing traction among retail investors in Korea.</li>
<li>As more of these eight proposals are made into law in the next several years, we believe that the 'Korea Discount' could also decline as well.</li>
</ul>


In this insight, we discuss the 'Save KOSPI' campaign which is a set of eight proposals made by the senior leaders at Korea Corporate Governance Forum and Uprise Co. (Heybit). 
We think that the Save KOSPI campaign is an interesting movement that is worth paying attention since it appears to be gaining increasing traction among retail investors in Korea.
As more of these eight proposals are made into law in the next several years, we believe that the 'Korea Discount' could also decline as well.


Cross Asset Strategy

<ul>
<li>On 6 March, the Financial Services Commission (FSC) and the Korea Exchange (KRX) jointly announced revisions and guidelines to spin-offs and double listings in Korea.</li>
<li>The new guidelines of the FSC and KRX regarding the spin-offs/double listings is positive and a step in the right direction to improve the corporate governance of companies in Korea.</li>
<li>On the other hand, one of the consequences of these changes could be that the parent companies may take more time to complete IPOs of their promising affiliates.</li>
</ul>


On 6 March, the Financial Services Commission (FSC) and the Korea Exchange (KRX) jointly announced revisions and guidelines to spin-offs and double listings in Korea.
The new guidelines of the FSC and KRX regarding the spin-offs/double listings is positive and a step in the right direction to improve the corporate governance of companies in Korea.
On the other hand, one of the consequences of these changes could be that the parent companies may take more time to complete IPOs of their promising affiliates.


FSC and KRX Jointly Announce Revisions to Spinoffs and Double Listings in Korea

<ul>
<li>In the past week, it was announced that Tving, a leading local OTT service provider in Korea, received 250 billion won in investment, valuing it at about 2 trillion won.</li>
<li>Previous to this investment, Tving was last valued at 350 billion won in July 2021. In other words, Tving's value surged by nearly 6x in the past seven months. </li>
<li>Our NAV per share of CJ ENM suggests a target price of 185,824 won, representing a 43% upside from current levels. </li>
</ul>


In the past week, it was announced that Tving, a leading local OTT service provider in Korea, received 250 billion won in investment, valuing it at about 2 trillion won.
Previous to this investment, Tving was last valued at 350 billion won in July 2021. In other words, Tving's value surged by nearly 6x in the past seven months. 
Our NAV per share of CJ ENM suggests a target price of 185,824 won, representing a 43% upside from current levels. 


Tving: Value Surges by Nearly 6x to 2 Trillion Won in 7 Months - Impact on CJ ENM

<ul>
<li>According to a local media outlet called ETNews, CJ ENM is considering on selling about half of its stake in Netmarble to potentially acquire the controlling stake in S.M. Entertainment.</li>
<li>Although CJ ENM is the lead candidate to acquire SM Entertainment, other contenders including Kakao Corp and Naver are not totally out of the M&amp;A race. </li>
<li>Overall, we would wait on buying CJ ENM at current levels. We think that the market is still concerned about CJ ENM overpaying for SM Entertainment.</li>
</ul>


According to a local media outlet called ETNews, CJ ENM is considering on selling about half of its stake in Netmarble to potentially acquire the controlling stake in S.M. Entertainment.
Although CJ ENM is the lead candidate to acquire SM Entertainment, other contenders including Kakao Corp and Naver are not totally out of the M&amp;A race. 
Overall, we would wait on buying CJ ENM at current levels. We think that the market is still concerned about CJ ENM overpaying for SM Entertainment.


CJ ENM: Potential Block Sale of Its Stake In Netmarble & Concerns About Corporate Reorganization

South Korea

CJ ENM, Ltd. retails clothes, kitchen utensils, home appliances, and jewelry.  The Company sells its merchandise through TV home shopping channels, catalogs, and the Internet shopping mall.  CJ ENM operates cable television business through a subsidiary.

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CJ ENM (035760 KS)

WISE Media Contents (TIGER ETF) Rebalancing Preview

This post previews the upcoming rebalancing of the WISE Media Contents Theme Index (TIGER ETF), whose effective date is April 15.

Sanghyun Park

What Is the 'Save KOSPI' Campaign?

In this insight, we discuss the 'Save KOSPI' campaign which is a set of eight proposals aimed at improving the corporate governance of Korean...

Douglas Kim

FSC and KRX Jointly Announce Revisions to Spinoffs and Double Listings in Korea

The new guidelines of the FSC and KRX regarding the spin-offs/double listings is positive and a step in the right direction to improve the...

Douglas Kim

Tving: Value Surges by Nearly 6x to 2 Trillion Won in 7 Months - Impact on CJ ENM

Tving, a leading local OTT service provider in Korea, received 250 billion won in investment, valuing it at about 2 trillion won. up from its...

Douglas Kim

CJ ENM: Potential Block Sale of Its Stake In Netmarble & Concerns About Corporate Reorganization

According to a local media outlet called ETNews, CJ ENM is considering on selling about half of its stake in Netmarble in a block deal to acquire...

Douglas Kim

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