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>Since Sep 24, 32 companies made Value-Up disclosures. After filtering, 17 remain, but KRX will keep inclusions tight. They’ll likely use PBR and ROE rankings for final selection.</li>
<li>We have 6 names—3 financials, 2 healthcare, 1 industrial. New Value-Up disclosures through Dec 6 could add more, but these 6 are the frontrunners for now.</li>
<li>KRX is likely to announce results by Dec 10-11. Start eyeing entry points 10 days prior, and if price action heats up early, consider pulling the trigger sooner.</li>
</ul>


Since Sep 24, 32 companies made Value-Up disclosures. After filtering, 17 remain, but KRX will keep inclusions tight. They’ll likely use PBR and ROE rankings for final selection.
We have 6 names—3 financials, 2 healthcare, 1 industrial. New Value-Up disclosures through Dec 6 could add more, but these 6 are the frontrunners for now.
KRX is likely to announce results by Dec 10-11. Start eyeing entry points 10 days prior, and if price action heats up early, consider pulling the trigger sooner.


KRX Value-Up Special Rebalance in December: Playbook & Screening Rundown

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Korea Exchange (KRX) plans to make special changes to the Korea Value-Up Index constituents on 20 December.</li>
<li>We believe that following five stocks are likely inclusions in the Korea Value Up index rebalance on 20 December (KB Financial, Hana Financial, SK Telecom, KT Corp, and LG Electronics).</li>
<li>The new companies that will be included in the Korea Value-Up Index include companies that provide detailed corporate value up plans by 6 December.</li>
</ul>


Korea Exchange (KRX) plans to make special changes to the Korea Value-Up Index constituents on 20 December.
We believe that following five stocks are likely inclusions in the Korea Value Up index rebalance on 20 December (KB Financial, Hana Financial, SK Telecom, KT Corp, and LG Electronics).
The new companies that will be included in the Korea Value-Up Index include companies that provide detailed corporate value up plans by 6 December.


Korea Value Up Index Rebalance on 20 December

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Nov 1st which has an aggregated short interest worth USD4.9bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Hanwha Systems, HPSP, CSWIND.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Nov 1st which has an aggregated short interest worth USD4.9bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Hanwha Systems, HPSP, CSWIND.


KRX Short Interest Weekly (Nov 1st): Hanwha Systems, HPSP, CSWIND

Cross Asset Strategy

<ul>
<li>There will be 12 ETFs related to the Corporate Value Up program that will be launched in Korea on 4 November.</li>
<li>Initially, there will be a total of 510 billion won allocated to these ETFs and ETNs related to the Corporate Value Up program in Korea.</li>
<li>Some of the major KOSPI 100 stocks including KB Financial and KT Corp that are not currently included in the Korea Value Up index could be included in these ETFs. </li>
</ul>


There will be 12 ETFs related to the Corporate Value Up program that will be launched in Korea on 4 November.
Initially, there will be a total of 510 billion won allocated to these ETFs and ETNs related to the Corporate Value Up program in Korea.
Some of the major KOSPI 100 stocks including KB Financial and KT Corp that are not currently included in the Korea Value Up index could be included in these ETFs. 


Launch of the Korea Value-Up ETFs on 4 November

Equity Capital Markets

<ul>
<li>According to Korea Zinc, it plans to disclose the treasury shares tender offer results on 28 October.</li>
<li>We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post announcement of the tender offer results.</li>
<li>All in all, this M&amp;A fight for Korea Zinc remains tight with a slight advantage to MBK/Young Poong alliance.</li>
</ul>


According to Korea Zinc, it plans to disclose the treasury shares tender offer results on 28 October.
We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post announcement of the tender offer results.
All in all, this M&amp;A fight for Korea Zinc remains tight with a slight advantage to MBK/Young Poong alliance.


Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?

South Korea

Hana Financial Group Inc., in accordance with Financial Holding Companies Act, was established on December 1, 2005, through stock transfer with the former shareholders of its subsidiaries in order to provide management services and financing to associated companies.

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Hana Financial (086790 KS)

KRX Value-Up Special Rebalance in December: Playbook & Screening Rundown

This post breaks down KRX’s official PR on the December Value-Up Index special rebalance and gives a detailed look at the screening results.

Sanghyun Park

Korea Value Up Index Rebalance on 20 December

We believe that following five stocks are likely inclusions in the Korea Value Up index rebalance on 20 December (KB Financial, Hana Financial, SK...

Douglas Kim

KRX Short Interest Weekly (Nov 1st): Hanwha Systems, HPSP, CSWIND

We analyzed KRX short interest report for the past week and highlighted short interest changes in Hanwha Systems, HPSP, CSWIND.

Ke Yan, CFA, FRM

Launch of the Korea Value-Up ETFs on 4 November

There will be 12 ETFs related to the Corporate Value Up program that will be launched in Korea on 4 November. Initially, there will be a total of...

Douglas Kim

Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?

We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)