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>Mirae Asset TIGER Fn Semiconductor TOP 10 ETF saw a rapid increase in AUM in a short period. Currently, AUM has reached 126 billion won.</li>
<li>Compared to the flow size, the price movement magnitude was substantial. What is particularly important is that the correlation between weight change direction and price impact was quite significant.</li>
<li>Considering Long Short basket trading based on the weight change direction on a day trading window seems worthwhile.</li>
</ul>


Mirae Asset TIGER Fn Semiconductor TOP 10 ETF saw a rapid increase in AUM in a short period. Currently, AUM has reached 126 billion won.
Compared to the flow size, the price movement magnitude was substantial. What is particularly important is that the correlation between weight change direction and price impact was quite significant.
Considering Long Short basket trading based on the weight change direction on a day trading window seems worthwhile.


Introducing Another Long Short Basket Trading Event with Semicon ETF Rebalancing in Korea

<ul>
<li>NPS said it would add 50 KOSPI stocks to KOSPI 200 for direct management. However, the key was when this would be implemented and which ones would be included.</li>
<li>SBS, one of Korea's major networks, exclusively reported that NPS finalized the constituent stocks of the NPS-KR250 and started rebalancing trading on the 50 additional KOSPI stocks from January.</li>
<li>Hence, tracing and identifying who these additional 50 KOSPI stocks are is becoming the hottest topic in Korea's local market at this point.</li>
</ul>


NPS said it would add 50 KOSPI stocks to KOSPI 200 for direct management. However, the key was when this would be implemented and which ones would be included.
SBS, one of Korea's major networks, exclusively reported that NPS finalized the constituent stocks of the NPS-KR250 and started rebalancing trading on the 50 additional KOSPI stocks from January.
Hence, tracing and identifying who these additional 50 KOSPI stocks are is becoming the hottest topic in Korea's local market at this point.


Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<p>In this insight, we discuss the stocks that could get included or excluded in the November 2021 KOSPI 200 rebalance. We highlight 15 stocks that could get included and 10 stocks that could get excluded in the upcoming KOSPI 200 rebalance.</p><div class="content-highlight">
<p>This rebalance of the KOSPI 200 strategy is a type of<strong> momentum-driven strategy.</strong> The 15 stocks that we think could get included in the next KOSPI 200 rebalance have generated strong share price performances <strong>(up 55% on average in the past six months</strong>). </p>
<p>On the other hand, the 10 stocks which we think could get excluded in the next KOSPI 200 rebalance (the bottom 5% of KOSPI 200 index in terms of market cap) have done much worse in terms of their share price performance (<strong>down 6.1% on average in the past six months</strong>). </p>
</div>

In this insight, we discuss the stocks that could get included or excluded in the November 2021 KOSPI 200 rebalance. We highlight 15 stocks that could get included and 10 stocks that could get excluded in the upcoming KOSPI 200 rebalance.
This rebalance of the KOSPI 200 strategy is a type of momentum-driven strategy. The 15 stocks that we think could get included in the next KOSPI 200 rebalance have generated strong share price performances (up 55% on average in the past six months). 
On the other hand, the 10 stocks which we think could get excluded in the next KOSPI 200 rebalance (the bottom 5% of KOSPI 200 index in terms of market cap) have done much worse in terms of their share price performance (down 6.1% on average in the past six months). 


Potential Changes of KOSPI 200 Index Components in the November 2021 Rebalance

Hyundai Construction Equipment / Event-Driven

<h2>New benchmarks for domestic equity</h2><p>The National Pension Service has disclosed the following reform plan about the direct and consignment management benchmarks for domestic stocks.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/220/338/original/1.png?1627188167" class="editor-image img-responsive" data-smartkarma-image-id="220338"></figure></section><ul>
<li><strong>As for the direct management, the National Pension Plan plans to internally develop and use a new index called NPS-KR250 by adding additional 50 KOSPI stocks to the KOSPI 200 constituents.</strong></li>
<li><strong>Regarding the consignment management, the KOSPI + KOSDAQ 100 stocks are currently used as benchmarks. This benchmark is reorganized into KOSPI + KOSDAQ 150, with 50 KOSDAQ stocks added.</strong></li>
</ul><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 248.688px;" data-sheets-value='{"1":2,"2":"Benchmark"}'>Benchmark</td>
<td style="width: 170.792px;" data-sheets-value='{"1":2,"2":"Previous"}'>Previous</td>
<td style="width: 326.521px;" data-sheets-value='{"1":2,"2":"New"}'>New</td>
</tr>
<tr>
<td style="width: 248.688px;" data-sheets-value='{"1":2,"2":"Internal (direct) management"}' data-sheets-formula="='KOSPI 200 Mirroring'!R[0]C[0]"><strong>Direct management</strong></td>
<td style="width: 170.792px;" data-sheets-value='{"1":2,"2":"KOSPI 200"}'>KOSPI 200</td>
<td style="width: 326.521px;" data-sheets-value='{"1":2,"2":"KOSPI 200 + KOSPI 50"}'><div><div><strong>NPS-KR250 = KOSPI 200 + additional 50 KOSPI stocks</strong></div></div></td>
</tr>
<tr>
<td style="width: 248.688px;" data-sheets-value='{"1":2,"2":"Global Equity"}'><strong>Consignment management</strong></td>
<td style="width: 170.792px;" data-sheets-value='{"1":2,"2":"KOSPI + KOSDAQ 100"}'>KOSPI + KOSDAQ 100</td>
<td style="width: 326.521px;" data-sheets-value='{"1":2,"2":"KOSPI + KOSDAQ 150"}'><div><div><strong>KOSPI + KOSDAQ 100 + additional 50 KOSDAQ stocks</strong></div></div></td>
</tr>
<tr><td colspan="3" rowspan="1" style="width: 746px;" data-sheets-value='{"1":2,"2":"Source: NPS"}'>Source: NPS</td></tr>
</tbody>
</table><h2>NPS size in the local stock market</h2><p>As of the end of April 2021, the National Pension Service has ₩883.6T in assets under management, of which ₩178T is invested in domestic stocks. Considering that the market capitalization of the KOSPI and KOSDAQ markets is currently around ₩2,800T, the national pension account for 6% of the Korean stock market.</p><table class="table table-striped">
<colgroup>
<col width="150">
<col width="80">
</colgroup>
<tbody>
<tr><td colspan="2" style="width: 364px;" data-sheets-value='{"1":2,"2":"Asset allocation status"}'>Asset allocation status as of the end-April, 2021</td></tr>
<tr>
<td style="width: 364px;" data-sheets-value='{"1":2,"2":"Domestic Equity"}'><strong>Domestic Equity</strong></td>
<td style="text-align: right; width: 382px;" data-sheets-value='{"1":3,"3":178014.6}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'><strong>₩178.1T</strong></td>
</tr>
<tr>
<td style="width: 364px;" data-sheets-value='{"1":2,"2":"Global Equity"}'>Global Equity</td>
<td style="text-align: right; width: 382px;" data-sheets-value='{"1":3,"3":222407.5}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'>₩222.4T</td>
</tr>
<tr>
<td style="width: 364px;" data-sheets-value='{"1":2,"2":"Domestic fixed income"}'>Domestic fixed income</td>
<td style="text-align: right; width: 382px;" data-sheets-value='{"1":3,"3":340524.2}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'>₩340.5T</td>
</tr>
<tr>
<td style="width: 364px;" data-sheets-value='{"1":2,"2":"Global fixed income"}'>Global fixed income</td>
<td style="text-align: right; width: 382px;" data-sheets-value='{"1":3,"3":48826.4}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'>₩48.8T</td>
</tr>
<tr>
<td style="width: 364px;" data-sheets-value='{"1":2,"2":"Alternatives"}'>Alternatives</td>
<td style="text-align: right; width: 382px;" data-sheets-value='{"1":3,"3":92768.2}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}'>₩92.8T</td>
</tr>
<tr><td colspan="2" style="width: 364px;">Source: NPS</td></tr>
</tbody>
</table><p>The proportion of local equity is 20.17%, down slightly from the end of last year, but still far exceeding the target of 16.80% this year.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/220/339/original/image_74411821721627188510268.png?1627188511" class="editor-image img-responsive" data-smartkarma-image-id="220339"></figure><h2>Direct vs. consignment for local equity</h2><p>As of the end of April this year, 52.03% of the funds invested in domestic stocks are direct management, then divided into active (19.43%) and passive (32.60%). The proportion of consignment management is 47.97%, and all of it is operated as active.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Direct vs. consignment for local equity"}'>Direct vs. consignment for local equity</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"2019 yearend"}'>2019 yearend</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Weight"}'>Weight</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"2020 yearend"}'>2020 yearend</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Weight"}'>Weight</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"April-end, 2021"}'><strong>April-end, 2021</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Weight"}'><strong>Weight</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Direct management"}'>Direct management</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":71.61210000000001}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩71.6T</td>
<td style="text-align: right;">55.15%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":93.37660000000001}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩93.4T</td>
<td style="text-align: right;">52.95%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":92.6208}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'><strong>₩92.6T</strong></td>
<td style="text-align: right;"><strong>52.03%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Active"}'>- Active</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":26.9769}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩27.0T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.20397795151753445}' data-sheets-formula="=R[0]C[-1]/R8C2">20.40%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":35.0249}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩35.0T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.19824502419133916}' data-sheets-formula="=R[0]C[-1]/R8C4">19.82%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":34.58823678}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'><strong>₩34.6T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1943}'><strong>19.43%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Passive"}'>- Passive</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44.6352}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩44.6T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3374960303658113}' data-sheets-formula="=R[0]C[-1]/R8C2">33.75%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":58.351699999999994}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩58.4T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3302774362840654}' data-sheets-formula="=R[0]C[-1]/R8C4">33.03%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":58.032759600000006}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'><strong>₩58.0T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.326}'><strong>32.60%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Consignment management"}'>Consignment management</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":60.6419}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩60.6T</td>
<td style="text-align: right;">45.85%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":83.2982}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩83.3T</td>
<td style="text-align: right;">47.15%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":85.3938}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'><strong>₩85.4T</strong></td>
<td style="text-align: right;"><strong>47.97%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Active"}'>- Active</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":60.6419}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩60.6T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.45852601811665433}' data-sheets-formula="=R[0]C[-1]/R8C2">45.85%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":83.2982}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩83.3T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4714775395245955}' data-sheets-formula="=R[0]C[-1]/R8C4">47.15%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":85.3938}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'><strong>₩85.4T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4797011031679424}' data-sheets-formula="=R[0]C[-1]/R8C6"><strong>47.97%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Passive"}'>- Passive</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩0.0T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-formula="=R[0]C[-1]/R8C2">0.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩0.0T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-formula="=R[0]C[-1]/R8C4">0.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'><strong>₩0.0T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-formula="=R[0]C[-1]/R8C6"><strong>0.00%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total domestic Equity"}'>Total domestic equity</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":132.254}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩132.3T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-formula="=sum(R[-5]C[0]:R[-1]C[0])">100.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":176.67479999999998}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'>₩176.7T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1}' data-sheets-formula="=sum(R[-5]C[0]:R[-1]C[0])">100.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":178.0146}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0T","3":1}'><strong>₩178.0T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.0000011031679423}' data-sheets-formula="=sum(R[-5]C[0]:R[-1]C[0])"><strong>100.00%</strong></td>
</tr>
<tr><td colspan="7" rowspan="1" data-sheets-value='{"1":2,"2":"Source: NPS"}'>Source: NPS</td></tr>
</tbody>
</table><p>The passively operated funds (32.60% of the total funds allocated to the domestic equity) are about ₩58T, and the benchmark is KOSPI 200. But not all amounts mechanically track the KOSPI 200. NPS employs various enhanced passive strategies, such as dividends, active quant, and factor model-based, in addition to conventional passive operations. To this end, NPS has developed and used various indices on its own since two years ago.</p>

New benchmarks for domestic equityThe National Pension Service has disclosed the following reform plan about the direct and consignment management benchmarks for domestic stocks.
As for the direct management, the National Pension Plan plans to internally develop and use a new index called NPS-KR250 by adding additional 50 KOSPI stocks to the KOSPI 200 constituents.
Regarding the consignment management, the KOSPI + KOSDAQ 100 stocks are currently used as benchmarks. This benchmark is reorganized into KOSPI + KOSDAQ 150, with 50 KOSDAQ stocks added.








Benchmark
Previous
New


Direct management
KOSPI 200
NPS-KR250 = KOSPI 200 + additional 50 KOSPI stocks


Consignment management
KOSPI + KOSDAQ 100
KOSPI + KOSDAQ 100 + additional 50 KOSDAQ stocks

Source: NPS

NPS size in the local stock marketAs of the end of April 2021, the National Pension Service has ₩883.6T in assets under management, of which ₩178T is invested in domestic stocks. Considering that the market capitalization of the KOSPI and KOSDAQ markets is currently around ₩2,800T, the national pension account for 6% of the Korean stock market.





Asset allocation status as of the end-April, 2021

Domestic Equity
₩178.1T


Global Equity
₩222.4T


Domestic fixed income
₩340.5T


Global fixed income
₩48.8T


Alternatives
₩92.8T

Source: NPS

The proportion of local equity is 20.17%, down slightly from the end of last year, but still far exceeding the target of 16.80% this year.Direct vs. consignment for local equityAs of the end of April this year, 52.03% of the funds invested in domestic stocks are direct management, then divided into active (19.43%) and passive (32.60%). The proportion of consignment management is 47.97%, and all of it is operated as active.











Direct vs. consignment for local equity
2019 yearend
Weight
2020 yearend
Weight
April-end, 2021
Weight


Direct management
₩71.6T
55.15%
₩93.4T
52.95%
₩92.6T
52.03%


- Active
₩27.0T
20.40%
₩35.0T
19.82%
₩34.6T
19.43%


- Passive
₩44.6T
33.75%
₩58.4T
33.03%
₩58.0T
32.60%


Consignment management
₩60.6T
45.85%
₩83.3T
47.15%
₩85.4T
47.97%


- Active
₩60.6T
45.85%
₩83.3T
47.15%
₩85.4T
47.97%


- Passive
₩0.0T
0.00%
₩0.0T
0.00%
₩0.0T
0.00%


Total domestic equity
₩132.3T
100.00%
₩176.7T
100.00%
₩178.0T
100.00%

Source: NPS

The passively operated funds (32.60% of the total funds allocated to the domestic equity) are about ₩58T, and the benchmark is KOSPI 200. But not all amounts mechanically track the KOSPI 200. NPS employs various enhanced passive strategies, such as dividends, active quant, and factor model-based, in addition to conventional passive operations. To this end, NPS has developed and used various indices on its own since two years ago.

NPS New Benchmarks for Local Stocks: NPS-KR250 (Direct) & KOSPI+KOSDAQ 150 (Consignment)

<div class="content-highlight"><p>In this insight, we provide a first cut at the potential additions and deletions of KOSPI 200 rebalance in November 2021. Although there are about five months left until the next KOSPI 200 rebalance, there are already many investors getting ready for this event. There are also stocks with a combination of improving fundamentals and higher probability of getting included in the KOSPI 200 index rebalance in November that have been big outperformers this year. </p></div><ul>
<li>Among the <strong>additions</strong>, we think some of the top candidates include F&amp;F, Hyundai Autoever, Hansol Chem, <a href="https://www.smartkarma.com/entities/daou-technology-inc" target="_blank" data-smartkarma-citation="entities:4411:1" rel="noopener">Daou Technology (023590 KS), </a><a href="https://www.smartkarma.com/entities/hyundai-construction-equipment-corporation" target="_blank" data-smartkarma-citation="entities:24120:1" rel="noopener">Hyundai Construction Equipment (267270 KS)</a>, <a href="https://www.smartkarma.com/entities/hyosung-chemical-corp" target="_blank" data-smartkarma-citation="entities:27752:1" rel="noopener">Hyosung Chemical Corp (298000 KS)</a>, <a href="https://www.smartkarma.com/entities/seah-besteel-corp" target="_blank" data-smartkarma-citation="entities:11760:1" rel="noopener">Seah Besteel (001430 KS)</a>, <a href="https://www.smartkarma.com/entities/hanmi-semiconductor-co-ltd" target="_blank" data-smartkarma-citation="entities:15587:1" rel="noopener">Hanmi Semiconductor (042700 KS)</a> </li>
<li>Among the <strong>deletions</strong>, we think that some of the top candidates include F&amp;F Holdings, Nexen Tire, H.S. Enterprise, Hyundai Green Food, and LX International. </li>
</ul><div class="content-highlight">
<p>Among the 29 companies we highlighted as the potential additions, six of them had their operating profit increasing by more than 100% YoY in 1Q 2021 which include the following:</p>
<ul>
<li><a href="https://www.smartkarma.com/entities/daou-technology-inc" target="_blank" data-smartkarma-citation="entities:4411:1" rel="noopener">Daou Technology (023590 KS)</a></li>
<li>
<a href="https://www.smartkarma.com/entities/hyundai-construction-equipment-corporation" target="_blank" data-smartkarma-citation="entities:24120:1" rel="noopener">Hyundai Construction Equipment (267270 KS)</a> </li>
<li>
<a href="https://www.smartkarma.com/entities/hyosung-chemical-corp" target="_blank" data-smartkarma-citation="entities:27752:1" rel="noopener">Hyosung Chemical Corp (298000 KS)</a> </li>
<li>KCC Glass (344820 KS)</li>
<li>
<a href="https://www.smartkarma.com/entities/seah-besteel-corp" target="_blank" data-smartkarma-citation="entities:11760:1" rel="noopener">Seah Besteel (001430 KS)</a> </li>
<li>
<a href="https://www.smartkarma.com/entities/hanmi-semiconductor-co-ltd" target="_blank" data-smartkarma-citation="entities:15587:1" rel="noopener">Hanmi Semiconductor (042700 KS)</a> </li>
</ul>
<p>These six stocks have had an outstanding share price performances this year as their share prices are up on average 97.1% YTD. These stocks have both a combination of improving fundamentals as well as the likelihood of getting included in KOSPI 200 index, resulting in many investors bidding up their shares. </p>
</div>

In this insight, we provide a first cut at the potential additions and deletions of KOSPI 200 rebalance in November 2021. Although there are about five months left until the next KOSPI 200 rebalance, there are already many investors getting ready for this event. There are also stocks with a combination of improving fundamentals and higher probability of getting included in the KOSPI 200 index rebalance in November that have been big outperformers this year. 
Among the additions, we think some of the top candidates include F&amp;F, Hyundai Autoever, Hansol Chem, Daou Technology (023590 KS), Hyundai Construction Equipment (267270 KS), Hyosung Chemical Corp (298000 KS), Seah Besteel (001430 KS), Hanmi Semiconductor (042700 KS) 
Among the deletions, we think that some of the top candidates include F&amp;F Holdings, Nexen Tire, H.S. Enterprise, Hyundai Green Food, and LX International. 

Among the 29 companies we highlighted as the potential additions, six of them had their operating profit increasing by more than 100% YoY in 1Q 2021 which include the following:

Daou Technology (023590 KS)

Hyundai Construction Equipment (267270 KS) 

Hyosung Chemical Corp (298000 KS) 
KCC Glass (344820 KS)

Seah Besteel (001430 KS) 

Hanmi Semiconductor (042700 KS) 

These six stocks have had an outstanding share price performances this year as their share prices are up on average 97.1% YTD. These stocks have both a combination of improving fundamentals as well as the likelihood of getting included in KOSPI 200 index, resulting in many investors bidding up their shares. 


Looking Ahead to the KOSPI 200 Rebalance in November 2021

South Korea

EO Technics Co., Ltd. is a laser-based equipment supplier. The Company develops laser technology and applications used for marking, drilling, trimming and cutting.

LEENO Industrial Inc. develops and manufactures various testers.  The Company's products include integrated circuit (IC) test sockets, test probe pins used in semiconductor industry.

DB Hitek Co., Ltd. manufactures system semiconductor and provides foundry services. The Company's products inculde fabricated wafer and integrated circuits for mobile handsets and flat panel LCDs.

Techwing Inc., manufactures parts for semiconductor testing equipment. The Company's product includes test handlers, Change of Kit (C.O.K) and test interface boards.  The company's main product, test handlers, is core  semiconductor testing equipment.

Jusung Engineering Co., Ltd. manufactures semiconductor, flat panel display, and solar cell production equipment.  The Company produces space divided CVD-ALD thin film machines for semiconductor manufacture; equipment for producing liquid crystal display panels; and equipment for manufacturing crystalline silicon and thin film silicon tandem solar cells.

Seojin System Co., Ltd. manufactures components for communication equipments, such as Remote Radio Head(RRH) and Digital Unit(DU).  The Company also produces semiconductor components and metal cases for hand-held devices.

Wonik IPS Co., Ltd. manufactures and sells semiconductor processing equipments.  The Company's main businesses include Semiconductor, Display and Solar industries.

Hana Micron Inc. designs, develops, manufactures, and sells semiconductor packages for memory and non-memory semiconductor products.  The Company also produces USB flash drive (UFD), a mobile storage devices which can substitute floppy disk drives.

Eugene Technology Company Ltd. manufactures tools for wafer fabs.  The Company uses the wafer fabs to produce integrated circuits in volume.

ISC Co., Ltd. manufactures semiconductor testing equipments such as test sockets, burn-in sockets, and interposers. Testing equipments are used in the final testing process of semiconductors including DRAM, NAND/NOR Flash Memory, and Graphic Processing Unit(GPU) and are supplied to semiconductor manufacturers  abroad.

SUMCO Corporation manufactures silicon wafers for the semiconductor industry. The Company produces silicon wafers used to produce solar batteries as well as ultra-high purity quartz used to produce vessels for silicon manufacturing process. SUMCO markets its products worldwide.

MA-COM Technology Solutions Holdings Inc. provides high performance analog semiconductor solutions. The Company supplies semiconductors, active and passive components, and sub-assemblies for use in radio frequency, microwave, and millimeter wave applications. MA-COM Technology Solutions serves customers throughout the United States.

eMemory Technology, Inc. develops and provides logic non-volatile memory (LogicNVM) technology. The company licenses its intellectual property to semiconductor foundries, integrated devices manufacturers (IDMs), and fabless design houses around the world.

ROHM COMPANY LIMITED manufactures custom linear integrated circuits and semiconductor devices for use primarily in consumer electronics.  The Company has plants and sales offices worldwide.  Rohm's subsidiaries include Wako Electric and Apollo Electronics.

Nanya Technology Corp. manufactures and markets dynamic random access memories (DRAMs).  The Company sells its products in Taiwan and exports worldwide.

Sanan Optoelectronics Co., Ltd. operates in the business of researching, producing and selling of LED epitaxial wafers and wafers.

SCREEN Holdings Co Ltd.  manufactures and sell semiconductors, FPD devices, commercial printing and printed circuit boards(PCB). The company also provides additional services for its products.

MKS Instruments, Inc. develops, manufactures, and supplies instruments and components used to control and analyze gases in semiconductor manufacturing and similar industrial manufacturing processes. The Company's products are used to manufacture flat panel displays, magnetic and optical storage devices and media, solar cells, fiber optic cables, and diamond thin films.

Rambus Inc. designs, develops, licenses, and markets high-speed chip-to-chip interface technology to enhance the performance and cost-effectiveness of consumer electronics, computer systems, and other electronic systems.  The Company licenses semiconductor companies to manufacture and sell memory and logic ICs incorporating Rambus interface technology.

Realtek Semiconductor Corp. designs, tests, and distributes integrated circuits which are used in consumer electronics, computer systems and peripherals, and communication network hardware.  The Company also provides technical counseling and systems software services.

Hanmi Semiconductor Co., Ltd. manufactures and develops semiconductor equipment. The Company's products include auto molding system, sawing & placement system, campress trim/form/singulation system, and pick & place system.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hanmi Semiconductor (042700 KS)

Introducing Another Long Short Basket Trading Event with Semicon ETF Rebalancing in Korea

This post introduces the rebalancing of sector ETFs in Korea, which is not yet well known, and examines whether this event provides long-short...

Sanghyun Park

Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management

This post investigates the 50 additional KOSPI stocks that Korea NPS has reportedly chosen for its benchmark index for direct management, called...

Sanghyun Park

Potential Changes of KOSPI 200 Index Components in the November 2021 Rebalance

In this insight, we discuss stocks that could get included or excluded in the November 2021 KOSPI 200 rebalance. We highlight 15 stocks that could...

Douglas Kim

NPS New Benchmarks for Local Stocks: NPS-KR250 (Direct) & KOSPI+KOSDAQ 150 (Consignment)

The NPS has disclosed the reform plan about the direct and consignment management benchmarks for domestic stocks. This post details the new...

Sanghyun Park

Looking Ahead to the KOSPI 200 Rebalance in November 2021

In this insight, we provide a first cut at the potential additions and deletions of KOSPI 200 rebalance in November 2021.

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)