Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Coway announced a significantly higher total shareholder return plan, nearly doubling total shareholder returns of consolidated net income from current 20% to about 40% in the next three years.</li>
<li>Coway has low valuation multiples. It is currently trading at EV/EBITDA of 4.1x, P/E of 8.1x, and P/B of 1.4x based on 2025 consensus earnings estimates.</li>
<li>We believe that the combination of improved shareholder returns and low valuation multiples are likely to lead to outperformance of Coway versus the market in the next 6-12 months. </li>
</ul>


Coway announced a significantly higher total shareholder return plan, nearly doubling total shareholder returns of consolidated net income from current 20% to about 40% in the next three years.
Coway has low valuation multiples. It is currently trading at EV/EBITDA of 4.1x, P/E of 8.1x, and P/B of 1.4x based on 2025 consensus earnings estimates.
We believe that the combination of improved shareholder returns and low valuation multiples are likely to lead to outperformance of Coway versus the market in the next 6-12 months. 


Coway: Doubling Total Shareholder Returns to 40% of Consolidated Net Income

Event-Driven

<ul>
<li>After the market close on 16 January, it was reported that Align Partners started to go activist on Coway Co Ltd (021240 KS).</li>
<li>Align Partners sent a public letter to Coway demanding improvements to shareholder returns and measures to enhance the independence of the board of directors.</li>
<li>The combination of higher shareholder returns, low valuations, and Align Partners putting further activist pressure are likely to lead to continued outperformance of Coway relative to KOSPI this year. </li>
</ul>


After the market close on 16 January, it was reported that Align Partners started to go activist on Coway Co Ltd (021240 KS).
Align Partners sent a public letter to Coway demanding improvements to shareholder returns and measures to enhance the independence of the board of directors.
The combination of higher shareholder returns, low valuations, and Align Partners putting further activist pressure are likely to lead to continued outperformance of Coway relative to KOSPI this year. 


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>LVC sits a blocking stake ahead of <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a>'s shareholder vote on the 22nd Janaury. I've yet to see a solid rationality why they would block.</li>
<li>
<a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a>extends the closing date to the 24th January. Shares held plus tendering is currently 86.18%. This is done.</li>
<li>
<a href="https://www.smartkarma.com/entities/kokusai-electric-corp" target="_blank" data-smartkarma-citation="entities:40152:1" rel="noopener">Kokusai Electric (6525 JP)</a> was IPOed in September 2023. Lockup expiry is next week, and there is a likely large index event in ~10 weeks</li>
</ul>


LVC sits a blocking stake ahead of Shanghai Henlius Biotech (2696 HK)'s shareholder vote on the 22nd Janaury. I've yet to see a solid rationality why they would block.

Malaysia Airports Holdings (MAHB MK)extends the closing date to the 24th January. Shares held plus tendering is currently 86.18%. This is done.

Kokusai Electric (6525 JP) was IPOed in September 2023. Lockup expiry is next week, and there is a likely large index event in ~10 weeks


Last Week In Event SPACE: Shanghai Henlius, Malaysia Airports, Kokusai Electric, Smart Share

Cross Asset Strategy

<ul>
<li>In this insight, we discuss the details of the share price performances of the Korea Value Up Index (especially among the index constituents) this year.</li>
<li>It appears that many traders are buying beaten up, higher beta stocks in Korea that were excessively pushed to much lower levels last year. </li>
<li>Among the top 20 best performing stocks in the Korea Value Up Index this year, 15 of them (75% of the top 20 stocks) are listed on KOSDAQ. </li>
</ul>


In this insight, we discuss the details of the share price performances of the Korea Value Up Index (especially among the index constituents) this year.
It appears that many traders are buying beaten up, higher beta stocks in Korea that were excessively pushed to much lower levels last year. 
Among the top 20 best performing stocks in the Korea Value Up Index this year, 15 of them (75% of the top 20 stocks) are listed on KOSDAQ. 


Korea Value Up Index: Winners and Losers in 2025 YTD

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Equity Derivatives

Korea Stock Exchange KOSPI 200 / Equity Derivatives

<ul>
<li>The <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200</a> Index is currently rising for the 3rd week in a row and approaching the Q2 WEEKLY resistance level, but it's a very weak rally.</li>
<li>Between 329 and 331 there id a good area to go SHORT, the index could fall for 2-3 weeks from here, into early November.</li>
<li>A negative close in October would be =3 months down in a row (CC=-3), November in that case would have good odds for a rebound and close up.</li>
</ul>


The KOSPI 200 Index is currently rising for the 3rd week in a row and approaching the Q2 WEEKLY resistance level, but it's a very weak rally.
Between 329 and 331 there id a good area to go SHORT, the index could fall for 2-3 weeks from here, into early November.
A negative close in October would be =3 months down in a row (CC=-3), November in that case would have good odds for a rebound and close up.


EQD | KOSPI 200 Frail WEEKLY Rally Is Ending

South Korea

Coway Co Ltd develops, manufactures, maintains, and markets environment-related products, such as water purifiers, air cleaners, and water softeners.The Company also provides water testing service.

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Coway Co Ltd (021240 KS)

Coway: Doubling Total Shareholder Returns to 40% of Consolidated Net Income

Coway announced a significantly higher total shareholder return plan, nearly doubling total shareholder returns of consolidated net income from...

Douglas Kim

Align Partners Goes Activist on Coway

After the market close on 16 January, it was reported that Align Partners started to go activist on Coway Co Ltd (021240 KS).

Douglas Kim

Korea Value Up Index: Winners and Losers in 2025 YTD

In this insight, we discuss the details of the share price performances of the Korea Value Up Index (especially among the index constituents) this...

Douglas Kim

EQD | KOSPI 200 Frail WEEKLY Rally Is Ending

The KOSPI 200 Index is rising for the 3rd week but it's a weak rally. Go SHORT between 329 and 331, hold 2-3 weeks. A negative close in October...

Nico Rosti

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)

Coway: Doubling Total Shareholder Returns to 40% of Consolidated Net Income

Coway announced a significantly higher total shareholder return plan, nearly doubling total shareholder returns of consolidated net income from...

Douglas Kim

Align Partners Goes Activist on Coway

After the market close on 16 January, it was reported that Align Partners started to go activist on Coway Co Ltd (021240 KS).

Douglas Kim

Last Week In Event SPACE: Shanghai Henlius, Malaysia Airports, Kokusai Electric, Smart Share

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Korea Value Up Index: Winners and Losers in 2025 YTD

In this insight, we discuss the details of the share price performances of the Korea Value Up Index (especially among the index constituents) this...

Douglas Kim

EQD | KOSPI 200 Frail WEEKLY Rally Is Ending

​The KOSPI 200 Index is rising for the 3rd week but it's a weak rally. Go SHORT between 329 and 331, hold 2-3 weeks. A negative close in October...

Nico Rosti

The KOSPI 200 Index is rising for the 3rd week but it's a weak rally. Go SHORT between 329 and 331, hold 2-3 weeks. A negative close in October...