Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>Procter &amp; Gamble Co (PG US), Amorepacific Corp (090430 KS), L'Oreal SA (OR FP), <a href="https://www.smartkarma.com/entities/lg-household-health-care" target="_blank" data-smartkarma-citation="entities:6501:1" rel="noopener">LG Household &amp; Health Care (051900 KS)</a>,  and Kao Corp (4452 JP), lead product innovation table</li>
<li>Among the smaller names <a href="https://www.smartkarma.com/entities/cosmax-inc" target="_blank" data-smartkarma-citation="entities:4491:1" rel="noopener">Cosmax Inc (192820 KS)</a>, Pola Orbis Holdings (4927 JP),  <a href="https://www.smartkarma.com/entities/kolmar-bnh-co-ltd" target="_blank" data-smartkarma-citation="entities:33240:1" rel="noopener">Kolmar BNH (200130 KS)</a>, have been relatively prolific in innovating over the last three years.</li>
<li>Apart from the quality of the ingredients, consistency, stability of the formulations, the packaging, dispensing, virtual try-on, personalized recommendations, sustainability seem to be some of the key trends in innovations.</li>
</ul>


Procter &amp; Gamble Co (PG US), Amorepacific Corp (090430 KS), L'Oreal SA (OR FP), LG Household &amp; Health Care (051900 KS),  and Kao Corp (4452 JP), lead product innovation table
Among the smaller names Cosmax Inc (192820 KS), Pola Orbis Holdings (4927 JP),  Kolmar BNH (200130 KS), have been relatively prolific in innovating over the last three years.
Apart from the quality of the ingredients, consistency, stability of the formulations, the packaging, dispensing, virtual try-on, personalized recommendations, sustainability seem to be some of the key trends in innovations.


Insights from Datamining Technical Publications - Cosmetics

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<div class="content-highlight">
<p><strong>Trading Opportunity for the Rights Offering</strong> - For the short term investors, we think that there could be an attractive trading opportunity regarding Cosmax. Given the relatively high upside (current price vs expected rights offering price), we would participate in the rights offering.</p>
<p>We also think that there is a relatively solid probability of the COVID-19 cases declining in Korea in the next several weeks and that Xi Jinping could come to South Korea sometime in August/September. As a result, we believe that there is a good chance that the Korean cosmetics stocks continue to outperform in the 2-3 months. </p>
</div><p>In this insight, we discuss the details of the <a href="https://www.smartkarma.com/entities/cosmax-inc" target="_blank" data-smartkarma-citation="entities:4491:1" rel="noopener">Cosmax Inc (192820 KS)</a> rights offering details and potential trading opportunities. Cosmax is one of the top five listed cosmetics companies in Korea. It currently has a market cap of 1.3 trillion won ($1.2 billion).</p><p>On 26 April 2021 (after market close), Cosmax announced that it will issue 1.3 million shares to raise 144.3 billion won. After this announcement, the stock fell 11.5% on the following day. Since then, the stock price has recovered nicely. From 26 April to 8 June 2021, Cosmax's share price is down 3%. </p><p>The expected rights offering price is 103,000 won and based on the current price of 130,000 won, it represents a 26.2% upside. Given this solid upside and the recent recovery of the stock price, there is likely to be relatively solid demand for this rights offering. </p><p>The rights offering subscription dates for the existing shareholders are from 17 to 18 June 2021. The new shares listing date is on 8 July. There is a 11.5% shares dilution associated with this rights offering. </p><p>Currently, Cosmax BTI is the largest controlling shareholder with a 26.2% in <a href="https://www.smartkarma.com/entities/cosmax-inc" target="_blank" data-smartkarma-citation="entities:4491:1" rel="noopener">Cosmax Inc (192820 KS)</a>. </p>


Trading Opportunity for the Rights Offering - For the short term investors, we think that there could be an attractive trading opportunity regarding Cosmax. Given the relatively high upside (current price vs expected rights offering price), we would participate in the rights offering.
We also think that there is a relatively solid probability of the COVID-19 cases declining in Korea in the next several weeks and that Xi Jinping could come to South Korea sometime in August/September. As a result, we believe that there is a good chance that the Korean cosmetics stocks continue to outperform in the 2-3 months. 
In this insight, we discuss the details of the Cosmax Inc (192820 KS) rights offering details and potential trading opportunities. Cosmax is one of the top five listed cosmetics companies in Korea. It currently has a market cap of 1.3 trillion won ($1.2 billion).On 26 April 2021 (after market close), Cosmax announced that it will issue 1.3 million shares to raise 144.3 billion won. After this announcement, the stock fell 11.5% on the following day. Since then, the stock price has recovered nicely. From 26 April to 8 June 2021, Cosmax's share price is down 3%. The expected rights offering price is 103,000 won and based on the current price of 130,000 won, it represents a 26.2% upside. Given this solid upside and the recent recovery of the stock price, there is likely to be relatively solid demand for this rights offering. The rights offering subscription dates for the existing shareholders are from 17 to 18 June 2021. The new shares listing date is on 8 July. There is a 11.5% shares dilution associated with this rights offering. Currently, Cosmax BTI is the largest controlling shareholder with a 26.2% in Cosmax Inc (192820 KS). 

Cosmax Rights Offering Details & Trading Opportunities

Founder/CEO of ROK Advisory, ROK Advisory LLC

Ken S. Kim

Founder/CEO of ROK Advisory

ROK Advisory LLC

ROK is an independent research advisory firm. We guide you to minimize the information gap between foreign and local investors in Northeast Asia with a focus in Korea, Taiwan and Japan.

Independent Research Advisory Firm

Equity Bottom-Up

<div>While the details are scarce, local press is reporting that SKT and AMZN has been in talks for more than a year and would allow really an export/import biz on both of their channels (ie Korean products to be bought by US consumers and US products to be bought thru 11th St (SK's ecommerce portal) for Koreans. </div><div></div><div>This can't be good for the ecommerce players in Korea.  In the US, if you hear that AMZN is coming in whatever business, the whole sector falls.   Is Naver next? </div>

While the details are scarce, local press is reporting that SKT and AMZN has been in talks for more than a year and would allow really an export/import biz on both of their channels (ie Korean products to be bought by US consumers and US products to be bought thru 11th St (SK's ecommerce portal) for Koreans. This can't be good for the ecommerce players in Korea.  In the US, if you hear that AMZN is coming in whatever business, the whole sector falls.   Is Naver next? 

AMZN into Korea - "We Are Not Here to Take Part, We're Here to Take Over!"

Julie Lee

<p>Korea exports in September increased by 7.7% YoY.  Average daily exports in September was still down 4.1% YoY but daily exports has recovered to over US$2bil, for the first time since January, and narrowed its losses compared to those in July and August (-7.1% and -4.3%). </p>
<p>Exports of Auto and Semiconductor sectors had led the improvement showing solid increase MoM in September. The sectors which had shown positive YoY growth in 3Q include Computers, Healthcare, Cosmetics, Consumer Electronics, Foods, and Auto, which implies positive near term trend for <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a> and <a href="https://www.smartkarma.com/entities/cosmax-inc" target="_blank" data-smartkarma-citation="entities:4491:1" rel="noopener">Cosmax Inc (192820 KS)</a> .  As suggested in the recent exports trend, Korean F&amp;B companies such as <a href="https://www.smartkarma.com/entities/cj-cheiljedang-corp" target="_blank" data-smartkarma-citation="entities:1970:1" rel="noopener">CJ Cheiljedang (097950 KS)</a> may have a good opportunity to expand their overseas businesses in the long term given increasing penetration of global online grocery shopping during the pandemic. We will discuss more details in the next report.  </p>

Korea exports in September increased by 7.7% YoY.  Average daily exports in September was still down 4.1% YoY but daily exports has recovered to over US$2bil, for the first time since January, and narrowed its losses compared to those in July and August (-7.1% and -4.3%). 
Exports of Auto and Semiconductor sectors had led the improvement showing solid increase MoM in September. The sectors which had shown positive YoY growth in 3Q include Computers, Healthcare, Cosmetics, Consumer Electronics, Foods, and Auto, which implies positive near term trend for LG Electronics (066570 KS) and Cosmax Inc (192820 KS) .  As suggested in the recent exports trend, Korean F&amp;B companies such as CJ Cheiljedang (097950 KS) may have a good opportunity to expand their overseas businesses in the long term given increasing penetration of global online grocery shopping during the pandemic. We will discuss more details in the next report.  

Solid Korea Export (+7.7%yoy) In Sep and Positive Implications

Cross Asset Strategy

<p>In this insight, we provide a data analysis of the inbound and outbound visitors in South Korea in 1Q 2020. The total number of visitors was down 15.2% YoY in January 2020, down 43% YoY in February and <strong>down a whopping 94.6% YoY in March. There were only 83,497 visitors to South Korea in March 2020 versus 1.5 million in March 2019. </strong></p><p>There were 3.7 million outbound visitors from South Korea in 1Q 2020, down 52.9% YoY. The outbound visitors from South Korea declined by 13.7% YoY in January 2020, down 60% YoY in February,<strong> and down 93.9% YoY in March.</strong></p><div class="content-highlight"><p><strong>All in all, May could be a key turning point, including in South Korea as many key countries around the world start to end their partial lockdown measures. Although we are not exactly sure how this will turn out, we think that a lot of the positives on governments' response to COVID-19 already appear to have been reflected in the global indices including in KOSPI so a few negative news regarding an increase in COViD-19 cases after the end of the partial lockdown could result in their share prices falling again.  </strong></p></div>

In this insight, we provide a data analysis of the inbound and outbound visitors in South Korea in 1Q 2020. The total number of visitors was down 15.2% YoY in January 2020, down 43% YoY in February and down a whopping 94.6% YoY in March. There were only 83,497 visitors to South Korea in March 2020 versus 1.5 million in March 2019. There were 3.7 million outbound visitors from South Korea in 1Q 2020, down 52.9% YoY. The outbound visitors from South Korea declined by 13.7% YoY in January 2020, down 60% YoY in February, and down 93.9% YoY in March.All in all, May could be a key turning point, including in South Korea as many key countries around the world start to end their partial lockdown measures. Although we are not exactly sure how this will turn out, we think that a lot of the positives on governments' response to COVID-19 already appear to have been reflected in the global indices including in KOSPI so a few negative news regarding an increase in COViD-19 cases after the end of the partial lockdown could result in their share prices falling again.  

South Korea Data Analysis of Inbound & Outbound Visitors in 1Q 2020

South Korea

Cosmax, Inc. is a cosmetics manufacturer. The Company develops and produces a variety of cosmetics for men and women, such as basic and special skin care, makeup, hair care, and other beauty products. Cosmax manufactures its products on original equipment manufacturing (OEM) basis.

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Cosmax Inc (192820 KS)

Insights from Datamining Technical Publications - Cosmetics

The beauty industry - where innovation can be real and driven by science, but sometimes just cosmetic to just change the perception

Pyari Menon

Cosmax Rights Offering Details & Trading Opportunities

In this insight, we discuss the details of the Cosmax Inc (192820 KS) rights offering details and potential trading opportunities.

Douglas Kim

AMZN into Korea - "We Are Not Here to Take Part, We're Here to Take Over!"

I guess the Koreans aren't scared of Amazon's entry into the ecommerce space! I'm a seller of Naver here on the news that Amazon will come into...

Ken S. Kim

Solid Korea Export (+7.7%yoy) In Sep and Positive Implications

Korea export in September increased by 7.7% yoy.

Julie Lee

South Korea Data Analysis of Inbound & Outbound Visitors in 1Q 2020

In this insight, we provide a data analysis of the inbound and outbound visitors in South Korea in 1Q 2020. The total number of visitors was down...

Douglas Kim

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