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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/paradise-co-ltd" target="_blank" data-smartkarma-citation="entities:14940:1" rel="noopener">Paradise Co Ltd (034230 KS)</a> will move from the KOSDAQ Market to the KOSPI Market from the open of trading on 24 June.</li>
<li>
<a href="https://www.smartkarma.com/entities/e-d-co-ltd" target="_blank" data-smartkarma-citation="entities:29151:1" rel="noopener">E&amp;D Co Ltd (101360 KS)</a> will be added to the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> at the close on 21 June to replace <a href="https://www.smartkarma.com/entities/paradise-co-ltd" target="_blank" data-smartkarma-citation="entities:14940:1" rel="noopener">Paradise Co Ltd (034230 KS)</a>. </li>
<li>
<a href="https://www.smartkarma.com/entities/paradise-co-ltd" target="_blank" data-smartkarma-citation="entities:14940:1" rel="noopener">Paradise Co Ltd (034230 KS)</a> belongs to the Consumer Discretionary sector and there is a possibility of inclusion to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> in December.</li>
</ul>



Paradise Co Ltd (034230 KS) will move from the KOSDAQ Market to the KOSPI Market from the open of trading on 24 June.

E&amp;D Co Ltd (101360 KS) will be added to the KOSDAQ 150 Index (KOSDQ150 INDEX) at the close on 21 June to replace Paradise Co Ltd (034230 KS). 

Paradise Co Ltd (034230 KS) belongs to the Consumer Discretionary sector and there is a possibility of inclusion to the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in December.


KOSDAQ150 Adhoc Index Rebalance: Eco&Dream to Replace Paradise Co

<ul>
<li>The review period for a bunch of indices ended last week though the announcement of the changes will take 4-6 weeks.</li>
<li>There are no rebalance implementations in the coming week though focus will move to the implementation of the <a href="https://www.smartkarma.com/entities/housing-development-finance" target="_blank" data-smartkarma-citation="entities:252:1" rel="noopener">HDFC Limited</a>/ <a href="https://www.smartkarma.com/entities/hdfc-bank-ltd-4b6b7a92-9087-468d-9dbe-ab169e77f014" target="_blank" data-smartkarma-citation="entities:558:1" rel="noopener">HDFC Bank</a> merger and index changes the following week.</li>
<li>There were big inflows to China focused ETF with a lot of money going into Semiconductor and Chip focused ETFs.</li>
</ul>


The review period for a bunch of indices ended last week though the announcement of the changes will take 4-6 weeks.
There are no rebalance implementations in the coming week though focus will move to the implementation of the HDFC Limited/ HDFC Bank merger and index changes the following week.
There were big inflows to China focused ETF with a lot of money going into Semiconductor and Chip focused ETFs.


Index Rebalance & ETF Flow Recap: KQ150, LQ45, PCOMP, HDFC/HDFCB, Delta Electronics, Redox IPO, AMFI

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>We discuss the end of the mandatory lock-up periods for 41 stocks in Korea in July 2023, among which 6 are in KOSPI and 35 are in KOSDAQ.</li>
<li>These 41 stocks on average could be subject to further selling pressures in June and could underperform relative to the market. </li>
<li>Among these 41 stocks, the top five market cap stocks include Lunit, Sungeel Hitech, KG Mobility, Enchem, and E&amp;D Co. </li>
</ul>


We discuss the end of the mandatory lock-up periods for 41 stocks in Korea in July 2023, among which 6 are in KOSPI and 35 are in KOSDAQ.
These 41 stocks on average could be subject to further selling pressures in June and could underperform relative to the market. 
Among these 41 stocks, the top five market cap stocks include Lunit, Sungeel Hitech, KG Mobility, Enchem, and E&amp;D Co. 


End of Mandatory Lock-Up Periods for 41 Companies in Korea in July 2023

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.

<ul>
<li>
The rebalancing cycle of the KODEX Secondary Battery ETF was changed from semi-annual to quarterly. Also, the rebalancing trading takes place for three trading days instead of one trading day.</li>
<li>
This passive impact will be different from the previous rebalancing. LG Energy and SK Innovation will likely experience a significant passive outflow. Then, most small-cap constituents will receive an inflow. </li>
<li>
Among the top weighting stocks, Samsung SDI and SKIET deserve attention. Sangsin Energy, E&amp;D, and TSI will face exclusion, while C&amp;I, Sang-A Frontec, and Enchem will likely join the ETF.</li>
</ul>



The rebalancing cycle of the KODEX Secondary Battery ETF was changed from semi-annual to quarterly. Also, the rebalancing trading takes place for three trading days instead of one trading day.

This passive impact will be different from the previous rebalancing. LG Energy and SK Innovation will likely experience a significant passive outflow. Then, most small-cap constituents will receive an inflow. 

Among the top weighting stocks, Samsung SDI and SKIET deserve attention. Sangsin Energy, E&amp;D, and TSI will face exclusion, while C&amp;I, Sang-A Frontec, and Enchem will likely join the ETF.


KODEX Battery ETF Rebalancing Cycle Changed to Quarterly: Preview for March Rebalancing

Equity Capital Markets

MiCo BioMed Co Ltd / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/mico-biomed-co-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:29240:1">MiCo BioMed Co Ltd (214610 KS)</a> is an interesting IPO, capitalizing on the price discount of the KONEX exchange. The IPO price range of this company is from 12,000 won to 15,000 won. This stock is already trading on the KONEX exchange at 24,550 won. As a result, if the IPO is priced at the high end of the IPO price range of 15,000 won, the investors may be able to take immediate profits of nearly 64% (assuming no lock-up period).The IPO is scheduled to take place on October 6th and the institutional investors bookbuilding closes on September 4th so one of the risks include uncertainty in how the stock would perform for about a month prior to the actual IPO date.Our base case valuation of the company suggests an implied market cap of 413 billion won or 22,564 won per share. Our base case valution of 22,564 won per share is 50% higher than the high end of the IPO price range of 15,000 won.

MiCo BioMed Co Ltd (214610 KS) is an interesting IPO, capitalizing on the price discount of the KONEX exchange. The IPO price range of this company is from 12,000 won to 15,000 won. This stock is already trading on the KONEX exchange at 24,550 won. As a result, if the IPO is priced at the high end of the IPO price range of 15,000 won, the investors may be able to take immediate profits of nearly 64% (assuming no lock-up period).The IPO is scheduled to take place on October 6th and the institutional investors bookbuilding closes on September 4th so one of the risks include uncertainty in how the stock would perform for about a month prior to the actual IPO date.Our base case valuation of the company suggests an implied market cap of 413 billion won or 22,564 won per share. Our base case valution of 22,564 won per share is 50% higher than the high end of the IPO price range of 15,000 won.

Mico Biomed IPO Valuation Analysis - Capitalize on the KONEX Exchange Discount

South Korea

KISWIRE Ltd. manufactures secondary steel products, such as wire ropes and wire strands for electric wire and springs.  The Company markets to the shipbuilding and construction industries, and exports products to overseas markets.  KISWIRE also has a financial subsidiary.

Taekwang Industrial Co., Ltd. manufactures synthetic yarns, petrochemical products, and textiles.  The Company's products include acrylic yarns, nylons, spandex, carbon fibers, spun yarns, polyester materials, and blankets.  Taekwang also produces electric equipment, such as audio equipment, and cordless telephones.  In addition, The Company operates real estate business.

KG Dongbusteel Co., Ltd. manufactures cold rolled sheets, such as commercial quality cold rolled steel sheets, deep drawing quality cold rolled sheets, and stabilized deep drawing cold rolled sheets.  The Company also offers special cold rolled sheets and plating base metals.

Unid Co., Ltd. manufactures and sells chemicals and timber products.  The Company's chemicals include potassium carbonate, hydrochloric acid, and caustic potash.  Unid also produces board and timber products, such as medium density fiberboard (MDF) and timber boards and formalin for construction uses.

Young Poong Corporation produces and markets non-ferrous metals, such as zinc ingots, sulfate, and cadmium.  The Company also generates income from leasing buildings.

Dongwha Enterprise Co., Ltd. is an investment holding company.  The Company, through its subsidiaries, processes timber and manufactures wood products used in the construction and furniture industries, produces and markets chemical products, provides architecture service, and operates trading business.

Hankuk Carbon Co., Ltd. develops, produces, and sells carbon products. The Company manufactures LNG panelling, sporting goods, aircraft parts, glass paper and other related carbon products. Hankuk Carbon offers its products to customers in Southeast Asia and Europe.

Aekyung Chemical Co., Ltd manufactures basic organic chemicals such as pht halic anhydride and plasticizers. The Company also produces maleic anhydride, itaconic acid, polyol and bio-diesel. Aekyung Chemical markets its products primarily throughout Korea with limited overseas.

Chunbo Co.,Ltd manufactures and sells chemical materials. The Company produces and sells display, semiconductor, and secondary battery application materials, as well as pharmaceutical intermediates and specialty chemicals. Chunbo markets its products worldwide.

Huchems Fine Chemical Corp. develops and provides fine chemical products. The main products include polyurethane, ammonium nitrate, nitric acid, and ammonia.

Thong Nhat Rubber JSC is a Vietnam-based company that manufactures and processes rubber products.

PT Archi Indonesia Tbk operates as a mining company. The Company explores and develops silver and gold projects. Archi Indonesia serves customers worldwide.

JSP Corporation manufactures polystyrene products used as automobile parts, construction, and other industrial materials.  The Company operates sale and manufacturing subsidiaries in US, France, Singapore, Korea, and Taiwan.

Jilin Liyuan Precision Manufacturing Co., Ltd manufactures and sells aluminum ex trusion profiles.  The Company's products include military, industrial, architec tural,  decoration and electronic aluminum profiles.

Jilin Liyuan Precision Manufactrg (002501 CH)

Beijing Lier High-temperature Materials Co.,Ltd. manufactures and sells steel, construction material, non-ferrous metals, and other refractory material.  The Company also designs, develops, constructs, installs, equips, uses, and maintains industrial furnace.

Beijing Lier High Temperatr Mtrls (002392 CH)

Jiangsu Alcha Aluminum Company Ltd. manufactures and markets pure aluminum foil, hydrophilic-coated aluminum foil, and aluminum scrip coil.

Jiangsu Alcha Aluminum Co, Ltd. (002160 CH)

The Pack Corporation produces paper products such as paper bags and corrugated cardboard boxes. The Company also manufactures plastic bags.

Zhejiang Great Southeast Company Ltd. manufactures a wide range of plastic packaging products. The Company produces plastic film, plastic bags, and other plastic packaging.

Zhejiang Jingxing Paper JSC Ltd manufactures and markets paper products including kraft box paper for packaging, corrugated paper, paperboard, and paper boxes.

Oriental Union Chemical Corporation manufactures and markets chemicals. The Company produces ethylene glycol, ethylene oxide, ethylene gas, and diethylene glycol.

E&D Co.,Ltd. operates advanced materials businesses. The Company mainly produces and sells diesel oxidation catalysts, fuel carrying catalysts, and other environment catalysts. E&D conducts business in Korea.

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E&D Co Ltd (101360 KS)

KOSDAQ150 Adhoc Index Rebalance: Eco&Dream to Replace Paradise Co

Eco&Dream will replace Paradise Co in the KOSDAQ150 Index at the close on Friday. Paradise Co could be added to the KOSPI200 Index in December...

Brian Freitas

Index Rebalance & ETF Flow Recap: KQ150, LQ45, PCOMP, HDFC/HDFCB, Delta Electronics, Redox IPO, AMFI

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

End of Mandatory Lock-Up Periods for 41 Companies in Korea in July 2023

We discuss the end of the mandatory lock-up periods for 41 stocks in Korea in July 2023, among which 6 are in KOSPI and 35 are in KOSDAQ.

Douglas Kim

KODEX Battery ETF Rebalancing Cycle Changed to Quarterly: Preview for March Rebalancing

The rebalancing cycle of the KODEX Secondary Battery ETF was changed from semi-annual to quarterly. This post previews the upcoming rebalancing...

Sanghyun Park

Mico Biomed IPO Valuation Analysis - Capitalize on the KONEX Exchange Discount

MiCo BioMed Co Ltd (214610 KS) is an interesting IPO, capitalizing on the price discount of the KONEX exchange. The IPO price range of this company...

Douglas Kim

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