Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<p>In this insight, we provide additional insights regarding the upcoming KOSPI 200 and KOSDAQ 150 rebalancing. According to the KRX, it plans to announce the KOSPI 200 and KOSDAQ 150 rebalanced stocks at the end of May and the changed KOSPI 200 and KOSDAQ 150 indices will be effective starting 12 June.</p><p>We have broken down the potential inclusions into KOSPI 200 KOSDAQ 150 into 3 major categories including the following:</p><ul>
<li>Share price performances YTD</li>
<li>Market Cap</li>
<li>Operating Profit Growth Momentum</li>
</ul><div class="content-highlight">
<p><strong>Combining all of these three factors, the top five companies in our list including Zinus, Hwa Sung Enterprises, F&amp;F, Cuckoo Homesys, POSCO Chemtech, and Cuckoo Homesys </strong><strong>are the ones that not only are potential inclusions in KOSPI 200 but also those that can potentially outperform the market after being included in KOSPI 200. </strong></p>
<p><strong>Combining all of these three factors, the top five companies in our list including ITM Semiconductor, Cowintech, Daou Data Corp, Ebest Investment &amp; Securities, and Neowiz Games are the ones that not only are potential inclusions in KOSDAQ 150 but also those that can potentially outperform the market after being included in KOSDAQ 150.  </strong></p>
</div>

In this insight, we provide additional insights regarding the upcoming KOSPI 200 and KOSDAQ 150 rebalancing. According to the KRX, it plans to announce the KOSPI 200 and KOSDAQ 150 rebalanced stocks at the end of May and the changed KOSPI 200 and KOSDAQ 150 indices will be effective starting 12 June.We have broken down the potential inclusions into KOSPI 200 KOSDAQ 150 into 3 major categories including the following:
Share price performances YTD
Market Cap
Operating Profit Growth Momentum

Combining all of these three factors, the top five companies in our list including Zinus, Hwa Sung Enterprises, F&amp;F, Cuckoo Homesys, POSCO Chemtech, and Cuckoo Homesys are the ones that not only are potential inclusions in KOSPI 200 but also those that can potentially outperform the market after being included in KOSPI 200. 
Combining all of these three factors, the top five companies in our list including ITM Semiconductor, Cowintech, Daou Data Corp, Ebest Investment &amp; Securities, and Neowiz Games are the ones that not only are potential inclusions in KOSDAQ 150 but also those that can potentially outperform the market after being included in KOSDAQ 150.  


KOSPI 200 & KOSDAQ 150 Rebalancing in June Update

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<div><p>The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSPI 200 in the second half of May. The constituent changes will be effective from 12 June 2020 and the rebalancing trades will need to be done at the closing auction on 11 June 2020.</p></div><div><p>In this Insight we look at the KOSPI 200 index methodology, the historical performance of inclusions vs exclusions, at the expected candidates for inclusion/exclusion in this review and some of the details around the names.</p></div><div>
<p>Following the completion of the review period on 29 April, we see 12 stocks being added to and deleted from the index.</p>
<table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 259pt;" colspan="3">EXPECTED INCLUSIONS</td>
<td style="text-align: center; width: 214pt;" colspan="3">EXPECTED EXCLUSIONS</td>
</tr>
<tr>
<td style="text-align: center;"><strong>Code</strong></td>
<td style="text-align: center;"><strong>Name</strong></td>
<td style="text-align: center;"><strong>Conviction</strong></td>
<td style="text-align: center;"><strong>Code</strong></td>
<td style="text-align: center;"><strong>Name</strong></td>
<td style="text-align: center;"><strong>Conviction</strong></td>
</tr>
<tr>
<td>003670.KS</td>
<td>POSCO CHEMICAL</td>
<td>HIGH</td>
<td>002270.KS</td>
<td>LOTTE FOOD</td>
<td>HIGH</td>
</tr>
<tr>
<td>180640.KS</td>
<td>HANJINKAL</td>
<td>HIGH</td>
<td>060980.KS</td>
<td>HALLA HOLDINGS</td>
<td>HIGH</td>
</tr>
<tr>
<td>007700.KS</td>
<td>F&amp;F</td>
<td>HIGH</td>
<td>002960.KS</td>
<td>HANKOOK SHELL OIL</td>
<td>HIGH</td>
</tr>
<tr>
<td>013890.KS</td>
<td>ZINUS</td>
<td>HIGH</td>
<td>025540.KS</td>
<td>KOR ELEC TERM</td>
<td>HIGH</td>
</tr>
<tr>
<td>011200.KS</td>
<td>HYUNDAI MERC MAR</td>
<td>HIGH</td>
<td>096760.KS</td>
<td>JW HOLDINGS</td>
<td>HIGH</td>
</tr>
<tr>
<td>020560.KS</td>
<td>ASIANA AIRLINES</td>
<td>HIGH</td>
<td>002240.KS</td>
<td>KIS WIRE</td>
<td>HIGH</td>
</tr>
<tr>
<td>009410.KS</td>
<td>TAEYOUNG E&amp;C</td>
<td>HIGH</td>
<td>001520.KS</td>
<td>TONGYANG</td>
<td>HIGH</td>
</tr>
<tr>
<td>241590.KS</td>
<td>HWASEUNG ENTERPRISE</td>
<td>HIGH</td>
<td>003920.KS</td>
<td>NAMYANG DAIRY</td>
<td>HIGH</td>
</tr>
<tr>
<td>192080.KS</td>
<td>DOUBLEUGAMES</td>
<td>HIGH</td>
<td>003620.KS</td>
<td>SSANGYONG MTR</td>
<td>HIGH</td>
</tr>
<tr>
<td>284740.KS</td>
<td>CUCKOO HOMESYS</td>
<td>HIGH</td>
<td>079430.KS</td>
<td>HYUNDAI LIVART</td>
<td>HIGH</td>
</tr>
<tr>
<td>032350.KS</td>
<td>LOTTE TOUR</td>
<td>HIGH</td>
<td>298040.KS</td>
<td>HYOSUNG HEAVY</td>
<td>HIGH</td>
</tr>
<tr>
<td>016380.KS</td>
<td>DONGBU STL</td>
<td>LOW</td>
<td>014830.KS</td>
<td>UNID</td>
<td>LOW</td>
</tr>
</tbody>
</table>
<p>The KRX also <a href="http://eindex.krx.co.kr/board/GLB0501070000/bbs#view=20348" target="_blank" rel="noopener">announced</a> that they were repealing the 30% capping rule in the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" rel="noopener" data-smartkarma-citation="entities:26021:1">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a>, so there will not be any capping of <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:191:1">Samsung Electronics (005930 KS)</a> in this review or any further reviews. </p>
</div>

The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSPI 200 in the second half of May. The constituent changes will be effective from 12 June 2020 and the rebalancing trades will need to be done at the closing auction on 11 June 2020.In this Insight we look at the KOSPI 200 index methodology, the historical performance of inclusions vs exclusions, at the expected candidates for inclusion/exclusion in this review and some of the details around the names.
Following the completion of the review period on 29 April, we see 12 stocks being added to and deleted from the index.











EXPECTED INCLUSIONS
EXPECTED EXCLUSIONS


Code
Name
Conviction
Code
Name
Conviction


003670.KS
POSCO CHEMICAL
HIGH
002270.KS
LOTTE FOOD
HIGH


180640.KS
HANJINKAL
HIGH
060980.KS
HALLA HOLDINGS
HIGH


007700.KS
F&amp;F
HIGH
002960.KS
HANKOOK SHELL OIL
HIGH


013890.KS
ZINUS
HIGH
025540.KS
KOR ELEC TERM
HIGH


011200.KS
HYUNDAI MERC MAR
HIGH
096760.KS
JW HOLDINGS
HIGH


020560.KS
ASIANA AIRLINES
HIGH
002240.KS
KIS WIRE
HIGH


009410.KS
TAEYOUNG E&amp;C
HIGH
001520.KS
TONGYANG
HIGH


241590.KS
HWASEUNG ENTERPRISE
HIGH
003920.KS
NAMYANG DAIRY
HIGH


192080.KS
DOUBLEUGAMES
HIGH
003620.KS
SSANGYONG MTR
HIGH


284740.KS
CUCKOO HOMESYS
HIGH
079430.KS
HYUNDAI LIVART
HIGH


032350.KS
LOTTE TOUR
HIGH
298040.KS
HYOSUNG HEAVY
HIGH


016380.KS
DONGBU STL
LOW
014830.KS
UNID
LOW



The KRX also announced that they were repealing the 30% capping rule in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX), so there will not be any capping of Samsung Electronics (005930 KS) in this review or any further reviews. 


KOSPI200 Rebalance Preview: The Final Cut

South Korea

Cuckoo Homesys Co. Ltd. manufactures kitchen appliances. The Company produces and sells electric pressure cookers, dishwashers, blenders, water purifiers, and other products. Cuckoo Homesys also provides kitchen appliances exporting services. Cuckoo Homesys markets its products worldwide.

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Cuckoo Homesys (284740 KS)

KOSPI 200 & KOSDAQ 150 Rebalancing in June Update

In this insight, we provide additional insights regarding the upcoming KOSPI 200 and KOSDAQ 150 rebalancing. According to the KRX, it plans to...

Douglas Kim

KOSPI200 Rebalance Preview: The Final Cut

The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSPI 200 in the second half of May. The constituent changes will...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)