Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage.</li>
<li>In general, more holdcos/quasi-holdcos have been outperforming the opcos in the past year, as compared to the previous years as more investors seek value-oriented, deep NAV discount stocks.</li>
<li>We highlight 26 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage.
In general, more holdcos/quasi-holdcos have been outperforming the opcos in the past year, as compared to the previous years as more investors seek value-oriented, deep NAV discount stocks.
We highlight 26 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Spreads Opportunities Amid Market Carnage

Global Healthcare Analyst

Tina Banerjee

Enzychem Lifesciences Corp / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/enzychem-lifesciences-corp" target="_blank" data-smartkarma-citation="entities:26185:1" rel="noopener">Enzychem Lifesciences Corp (183490 KS)</a> is eyeing on its lead innovative drug candidate, EC-18 for long-term sustainable growth driver. EC-18 is in late-stage clinical trial for couple of indications.</li>
<li>EC-18 is in phase 2 clinical trial for the treatment of chemoradiation-induced oral mucositis (CRIOM), an acute inflammation of the oral mucosa following systemic chemoradiation therapy.</li>
<li>Currently, CRIOM has no approved therapies. Enzychem Lifesciences has filed for FDA breakthrough therapy designation for EC-18 in CRIOM, which will enable designing of phase 3 study.  </li>
</ul>



Enzychem Lifesciences Corp (183490 KS) is eyeing on its lead innovative drug candidate, EC-18 for long-term sustainable growth driver. EC-18 is in late-stage clinical trial for couple of indications.
EC-18 is in phase 2 clinical trial for the treatment of chemoradiation-induced oral mucositis (CRIOM), an acute inflammation of the oral mucosa following systemic chemoradiation therapy.
Currently, CRIOM has no approved therapies. Enzychem Lifesciences has filed for FDA breakthrough therapy designation for EC-18 in CRIOM, which will enable designing of phase 3 study.  


Enzychem Lifesciences Corp (183490 KS): Picked New Drug Development as Future Growth Engine

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>The DAX and Hang Seng are reversing their downtrends while MSCI China (MCHI-US) and China Internet (KWEB-US) are currently testing their respective multi-month downtrends.</li>
<li>Reversals of these downtrends would signal a bear market rally in progress.</li>
<li>We will need to see more basing, followed by base breakouts, in order to get bullish -- a process that would likely take weeks or months.</li>
</ul>


The DAX and Hang Seng are reversing their downtrends while MSCI China (MCHI-US) and China Internet (KWEB-US) are currently testing their respective multi-month downtrends.
Reversals of these downtrends would signal a bear market rally in progress.
We will need to see more basing, followed by base breakouts, in order to get bullish -- a process that would likely take weeks or months.


Still Bearish, But On Watch for Bear Market Rally; Buying Toshiba 6502-JP, Defensive Sectors

Event-Driven

<ul>
<li>There is an interesting situation brewing at the Hanmi Pharm Group, which is one of the largest pharmaceutical companies in Korea.</li>
<li>On 16 March, it was reported that Hanmi Pharm decided not to raise the agenda for re-appointment of CEO Lim Jong Yoon as an inside director at the Hanmi Science.</li>
<li>In terms of trading, there appears to be more upside in Hanmi Science (008930 KS) as compared to Hanmi Pharm (128940 KS) in the next several months.</li>
</ul>


There is an interesting situation brewing at the Hanmi Pharm Group, which is one of the largest pharmaceutical companies in Korea.
On 16 March, it was reported that Hanmi Pharm decided not to raise the agenda for re-appointment of CEO Lim Jong Yoon as an inside director at the Hanmi Science.
In terms of trading, there appears to be more upside in Hanmi Science (008930 KS) as compared to Hanmi Pharm (128940 KS) in the next several months.


A Long-Term M&A Battle Brewing Among the 3 Heirs of Hanmi Pharm Group?

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 local street hears KRX has bumped it up to 14.68%. With the 1% rounding applied, it becomes 15%.</li>
<li>It is extremely rare for a Fast Entry to come in with a float market cap of +₩10T. So, we will see significant weight adjustments for the other constituents.</li>
<li>As we move towards the implementation date, we can consider basket-shorting those high-impact names for LG Energy's long hedge.</li>
</ul>


The local street hears KRX has bumped it up to 14.68%. With the 1% rounding applied, it becomes 15%.
It is extremely rare for a Fast Entry to come in with a float market cap of +₩10T. So, we will see significant weight adjustments for the other constituents.
As we move towards the implementation date, we can consider basket-shorting those high-impact names for LG Energy's long hedge.


LG Energy's KOSPI 200 Float Is 15%: Weight Adjustment Trading for Other Constituents

South Korea

Hanmi Pharm. Company Ltd. produces pharmaceutical products, including antibiotics, vitamins, and intestinal tonics.  The Company also provides beverages and processes soft capsules for other pharmaceutical firms.

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Hanmi Pharm (128940 KS)

Korean Holdcos Vs Opcos Gap Spreads Opportunities Amid Market Carnage

In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage. We highlight 26 pair trades...

Douglas Kim

Enzychem Lifesciences Corp (183490 KS): Picked New Drug Development as Future Growth Engine

The company’s lead drug candidate, EC-18 is in late-stage clinical trial for an unmet need in oncology, chemoradiation-induced oral mucositis,...

Tina Banerjee

Still Bearish, But On Watch for Bear Market Rally; Buying Toshiba 6502-JP, Defensive Sectors

The $DAX and Hang Seng are reversing their downtrends while China $MCHI and China Internet $KWEB are currently testing their respective multi-month...

Vermilion Research

A Long-Term M&A Battle Brewing Among the 3 Heirs of Hanmi Pharm Group?

There is a growing probability that eventually there could be a brewing M&A battle among the three heirs of the Hanmi Pharm owner family.

Douglas Kim

LG Energy's KOSPI 200 Float Is 15%: Weight Adjustment Trading for Other Constituents

KRX has bumped up LG Energy's float to 15%. As a result, we will see a more substantial passive impact on LG Energy. Also, we should see...

Sanghyun Park

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