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.

Equity Bottom-Up

The biggest gainers this morning are:

Hansol Chemical (014680 KS): +8.00%

DL Co Ltd (000210 KS): +7.78%

Kcc Corp (002380 KS): +7.58%

Hanwha Solutions (009830 KS): +7.56%













Gainers
Daily Δ
Losers
Daily Δ
x Open
Value
TV/DTV (x)
Value


Hansol Chemical Co Ltd
8.00%
Dong Suh Companies Inc
-5.67%
Dongwon Systems Corp
10.87%
KCC Corp
3.26


DL Holdings Co Ltd
7.78%
Chong Kun Dang Pharmaceutical Corp
-3.90%
Hansol Chemical Co Ltd
10.00%
Doosan Infracore Co Ltd
2.96


KCC Corp
7.58%
Dongwon Systems Corp
-3.37%
Dong Suh Companies Inc
8.22%
LOTTE Himart Co Ltd
2.94


SKC Co Ltd
7.56%
Oci Co Ltd
-2.65%
KCC Corp
7.82%
Hanwha Solutions Corp
2.57


Hanwha Solutions Corp
7.11%
Lotte Tour Development Co., Ltd.
-2.48%
SKC Co Ltd
7.52%
CJ Logistics Corp
1.68


LOTTE Himart Co Ltd
6.49%
Green Cross Holdings
-2.46%
LOTTE Himart Co Ltd
6.88%
Samsung Heavy Industries Co.,Ltd
1.63


Doosan Infracore Co Ltd
5.24%
Hanssem Co Ltd
-2.30%
Hanwha Solutions Corp
6.76%
LG HAUSYS, LTD.
1.44


Hyundai Steel Co
4.95%
Green Cross Corp
-2.05%
Hyundai Steel Co
6.49%
Dongwon Systems Corp
1.42


SK Holdings Co Ltd
4.30%
Korea Aerospace Industries Ltd
-2.01%
HMM Co Ltd
6.20%
Doubleu Games Co Ltd
1.42


Samsung C&amp;T Corp
4.22%
Cuckoo Holdings Co Ltd
-2.00%
Chong Kun Dang Pharmaceutical Corp
5.71%
Lotte Chilsung Beverage Co Ltd
1.41


Lotte Shopping Co Ltd
4.13%
Cuckoo Homesys Co Ltd
-1.93%
DL Holdings Co Ltd
5.69%
DL Holdings Co Ltd
1.29


Lotte Chilsung Beverage Co Ltd
4.07%
Ilyang Pharmaceutical Co., Ltd
-1.90%
Kolon Industries Inc
5.59%
SKC Co Ltd
1.23


Posco International Corp
4.01%
Boryung Pharmaceutical Co., Ltd
-1.82%
Handsome Corp
5.51%
Hyundai Steel Co
1.13


Shinsegae Inc
3.89%
CJ Cheiljedang Corp
-1.75%
SK Holdings Co Ltd
5.33%
Kolon Industries Inc
1.08


Handsome Corp
3.76%
NCSoft Corp
-1.60%
Doosan Infracore Co Ltd
5.20%
Hansol Chemical Co Ltd
1.01


KB Financial Group Inc
3.73%
Naver Corp
-1.55%
Shinsegae Inc
5.19%
JW Pharmaceutical Corp
0.94


SK Innovation Co Ltd
2.93%
JW Pharmaceutical Corp
-1.50%
Dongkuk Steel Mill Co., Ltd
5.02%
Ssangyong Cement Industry Co Ltd
0.92


LG International Corp
2.83%
DB HiTek Co Ltd
-1.45%
KB Financial Group Inc
4.92%
KEPCO Plant Service &amp; Engineering Co Ltd
0.91


Shinhan Financial Group Co., Ltd.
2.71%
SK Biopharmaceuticals Co Ltd
-1.41%
Posco International Corp
4.71%
Handsome Corp
0.89


LG HAUSYS, LTD.
2.57%
Daewoong Pharmaceutical Co., Ltd.
-1.16%
Pan Ocean Co Ltd
4.69%
IS DONGSEO CO., LTD.
0.85

Source: KRX

















Top 20
52WH
52WH Date
MC (₩B)
Daily Δ
x Open
TV/DTV
x 52WL
U Wick
Body
L Wick


Kolon Industries Inc
1.04
3/23/21
1,678.1
1.97%
5.59%
1.08
2.59
-52.94%
41.18%
5.88%


KT Corp
1.02
2/17/21
7,285.0
0.72%
1.62%
0.55
1.45
-11.11%
44.44%
44.44%


Amorepacific Corp
1.02
1/25/21
15,082.3
0.78%
3.15%
0.68
1.73
-37.50%
50.00%
12.50%


Handsome Corp
1.01
3/17/21
1,018.5
3.76%
5.51%
0.89
2.30
-34.09%
65.91%
0.00%


Doosan Bobcat Inc
0.99
3/17/21
3,669.1
1.95%
2.64%
0.43
2.23
-5.26%
63.16%
31.58%


KB Financial Group Inc
0.99
3/11/21
21,996.2
3.73%
4.92%
0.55
1.73
-4.00%
84.00%
12.00%


Cosmax Inc
0.98
10/12/20
1,261.2
2.45%
4.51%
0.46
1.84
-18.18%
63.64%
18.18%


HMM Co Ltd
0.98
3/23/21
9,625.2
-0.17%
6.20%
0.72
11.59
-8.11%
-40.54%
51.35%


KCC Corp
0.97
1/26/21
1,955.0
7.58%
7.82%
3.26
1.86
0.00%
96.88%
3.13%


Seah Besteel Corporation
0.97
3/23/21
615.0
1.48%
3.26%
0.26
2.56
-18.18%
54.55%
27.27%


Lotte Chilsung Beverage Co Ltd
0.97
2/9/21
1,148.8
4.07%
4.03%
1.41
1.54
0.00%
80.00%
20.00%


Kangwon Land, Inc.
0.97
3/18/21
5,658.7
0.57%
1.53%
0.24
1.49
-12.50%
87.50%
0.00%


Shinsegae International Inc
0.96
4/28/20
1,513.7
1.44%
2.90%
0.41
1.58
-16.67%
83.33%
0.00%


Dongkuk Steel Mill Co., Ltd
0.96
3/23/21
1,078.4
2.26%
5.02%
0.30
3.29
-27.27%
63.64%
9.09%


Hotel Shilla Co Ltd
0.96
1/18/21
3,430.3
1.39%
2.21%
0.40
1.33
-10.53%
78.95%
10.53%


MERITZ SECURITIES CO LTD
0.96
3/23/21
2,947.2
0.00%
2.30%
0.49
1.78
-5.00%
20.00%
75.00%


BNK Financial Group Inc
0.96
3/19/21
2,180.5
2.14%
3.37%
0.33
1.66
-9.09%
72.73%
18.18%


Hana Financial Group Inc
0.96
3/19/21
12,294.9
0.00%
3.35%
0.56
1.95
-25.93%
44.44%
29.63%


Hansol Chemical Co Ltd
0.95
2/22/21
2,754.5
8.00%
10.00%
1.01
3.38
-11.11%
80.00%
8.89%


Doosan Infracore Co Ltd
0.95
9/28/20
2,176.5
5.24%
5.20%
2.96
3.50
-10.00%
86.00%
4.00%

Source: KRX



Hanwha S, DL, KCC, & Hansol C Are KOSPI 200 Movers Today: What Happens?

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

Review of Top 10 Issues Related to Korean stock market, economy, &amp; politics in June 2020:
<ul>
<li>SK Biopharm IPO</li>
<li>SK Holdings downgrade</li>
<li>Capital gains tax on stocks and funds in Korea</li>
<li>China scraps "Han Han Ryung" (Law that Banned Korean culture-related products/services)</li>
<li>A Surge in Value of Nikola Corp</li>
<li>North Korea suspends all communication with South Korea</li>
<li>Positioning ahead of KOSPI 200 &amp; KOSDAQ 150 Rebalance in December</li>
<li>IGIS Value Plus REIT &amp; IGIS Residence REIT IPOs</li>
<li>Korean preferred shares: Bamboo trees of Korean stock market</li>
<li>Korea Small Cap Gem #3: New Tree Co</li>
</ul>

Review of Top 10 Issues Related to Korean stock market, economy, &amp; politics in June 2020:

SK Biopharm IPO
SK Holdings downgrade
Capital gains tax on stocks and funds in Korea
China scraps "Han Han Ryung" (Law that Banned Korean culture-related products/services)
A Surge in Value of Nikola Corp
North Korea suspends all communication with South Korea
Positioning ahead of KOSPI 200 &amp; KOSDAQ 150 Rebalance in December
IGIS Value Plus REIT &amp; IGIS Residence REIT IPOs
Korean preferred shares: Bamboo trees of Korean stock market
Korea Small Cap Gem #3: New Tree Co


Korea Stock Market Monthly Recap #49 (June 2020)

<div class="content-highlight">
In our view, <a href="https://www.smartkarma.com/entities/tokai-carbon-korea-co-ltd" target="_blank" data-smartkarma-citation="entities:18979:1" rel="noopener">Tokai Carbon Korea (064760 KS)</a>'s valuation premium versus its peers appears reasonable but priced to "near-perfection." A key risk for this stock is if there is some hiccup to the NAND Capex and equipment spending by its major customers including Samsung Electronics, LAM Research, and Applied Materials.
TCK is best known for its highest quality SiC components, which accounted for 71.4% and 80.4% of the company's sales in 2019 and 1Q 2020, respectively. The company has a near-monopoly position for its SiC rings that are used in the chemical vapour deposition (CVD) semiconductor equipment.  
TCK currently trades at a significant premium to the comps (domestic) on almost all valuation multiples including P/S, P/E, and EV/EBITDA. The average P/E and EV/EBITDA multiples of the comps are 15.4x and 8.8x, respectively in 2019. In comparison, TCK has higher multiples of 22.7x P/E and 13.7x, respectively in 2019.
Although TCK's share price has rebounded nicely since the third week of March (up more than 130% since then), the company's business still remains a component supplier to the highly volatile NAND semiconductor sector. As such, a more prudent approach is to wait until the share price comes down to more reasonable levels (we would wait for at least a 15-20% correction from current levels). 
</div>


In our view, Tokai Carbon Korea (064760 KS)'s valuation premium versus its peers appears reasonable but priced to "near-perfection." A key risk for this stock is if there is some hiccup to the NAND Capex and equipment spending by its major customers including Samsung Electronics, LAM Research, and Applied Materials.
TCK is best known for its highest quality SiC components, which accounted for 71.4% and 80.4% of the company's sales in 2019 and 1Q 2020, respectively. The company has a near-monopoly position for its SiC rings that are used in the chemical vapour deposition (CVD) semiconductor equipment.  
TCK currently trades at a significant premium to the comps (domestic) on almost all valuation multiples including P/S, P/E, and EV/EBITDA. The average P/E and EV/EBITDA multiples of the comps are 15.4x and 8.8x, respectively in 2019. In comparison, TCK has higher multiples of 22.7x P/E and 13.7x, respectively in 2019.
Although TCK's share price has rebounded nicely since the third week of March (up more than 130% since then), the company's business still remains a component supplier to the highly volatile NAND semiconductor sector. As such, a more prudent approach is to wait until the share price comes down to more reasonable levels (we would wait for at least a 15-20% correction from current levels). 


Tokai Carbon Korea (TCK) - Priced for A "Near-Perfection"

In this insight, we provide an analysis of "buying the rumor" of potential additions to the next KOSPI200 rebalance in December 2020 as well "selling the news" of KOSPI200 additions for June 2020. In terms of the share price performance, we broke down the time frame into 3 periods including: <ul>
<li>
[I] -3 mths from 2/27/20 to 5/27/2020
</li>
<li>[II] - From the end of 2019 to 5/27/2020</li>
<li>[III] - From 5/27/20 to 6/17/20</li>
</ul>In both periods I and II, the strategy of "Buy the Rumor" of trying to pick the stocks that may get INCLUDED in the KOSPI200 worked beautifully, with significant outperformance relative to the KOSPI during these periods. In this insight, we also provide 12 potential additions of the KOSPI 200 rebalance in December 2020. Some of these stocks including <a href="https://www.smartkarma.com/entities/hanwha-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:28308:1" rel="noopener">Hanwha Systems Co Ltd (272210 KS)</a>, <a href="https://www.smartkarma.com/entities/hansol-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:12361:1" rel="noopener">Hansol Chemical (014680 KS)</a>, and <a href="https://www.smartkarma.com/entities/samyang-foods-co-ltd" target="_blank" data-smartkarma-citation="entities:9100:1" rel="noopener">Samyang Foods (003230 KS)</a> have already been making strong upward moves in recent weeks. The strategy here would be to buy a basket of these stocks leading up to the announcement of the next KOSPI 200 rebalance in a few months (Buy the Rumor).

In this insight, we provide an analysis of "buying the rumor" of potential additions to the next KOSPI200 rebalance in December 2020 as well "selling the news" of KOSPI200 additions for June 2020. In terms of the share price performance, we broke down the time frame into 3 periods including: 

[I] -3 mths from 2/27/20 to 5/27/2020

[II] - From the end of 2019 to 5/27/2020
[III] - From 5/27/20 to 6/17/20
In both periods I and II, the strategy of "Buy the Rumor" of trying to pick the stocks that may get INCLUDED in the KOSPI200 worked beautifully, with significant outperformance relative to the KOSPI during these periods. In this insight, we also provide 12 potential additions of the KOSPI 200 rebalance in December 2020. Some of these stocks including Hanwha Systems Co Ltd (272210 KS), Hansol Chemical (014680 KS), and Samyang Foods (003230 KS) have already been making strong upward moves in recent weeks. The strategy here would be to buy a basket of these stocks leading up to the announcement of the next KOSPI 200 rebalance in a few months (Buy the Rumor). 

"Buy the Rumor" Of Upcoming KOSPI200 Rebalance in 12/2020 & "Sell the News" Of 6/2020

Global Special Situations & Strategy, SR Services Ltd

David Lepper

Global Special Situations & Strategy

SR Services Ltd

SR Services provides Strategic Knowledge and Solutions services for Family Offices and Corporate Business. 

We deliver this via advisory services, strategic planning, opportunity analysis/sourcing, as well as solution implementation. 

Whilst, we create intellectual discipline and operational leverage for your projects or daily activities, our ultimate objective is to empower whilst enhancing your decision making. 

Strategic Knowledge and Solutions

Growth as an investment style has remained prominent over the COVID-19 period, reinforcing its decade long dominance over the value. The key question remains:  with earnings and value set to be a key theme over H2 2020 when exactly is the value style expected to reverse its underperformance trend? Our data suggest a greater than 66% chance of reversal shortly. As the value style reversal looks increasingly assured, exposure to GARP style investing and the underlying stocks are set to become even more important as we move into the second half of 2020. We highlight 17 stocks who fit the criteria in Q2 2020.

Growth as an investment style has remained prominent over the COVID-19 period, reinforcing its decade long dominance over the value. The key question remains:  with earnings and value set to be a key theme over H2 2020 when exactly is the value style expected to reverse its underperformance trend? Our data suggest a greater than 66% chance of reversal shortly. As the value style reversal looks increasingly assured, exposure to GARP style investing and the underlying stocks are set to become even more important as we move into the second half of 2020. We highlight 17 stocks who fit the criteria in Q2 2020.

Screening the Silk Road: Q2-2020 Small-Mid Cap GARP (Zulu Warrior Screening)

South Korea

Hansol Chemical Co., Ltd. manufactures chemical products such as hydrogen peroxide, benzol peroxide, urea resin, polyacrylamide, trimethylolpropane, and latex.  The Company supplies its products to the paper, textile, and food industries.

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

Hansol Chemical (014680 KS)

Hanwha S, DL, KCC, & Hansol C Are KOSPI 200 Movers Today: What Happens?

This post looks into what may have happened to KOSPI 200 movers today: Hanwha Solutions, DL Corp, KCC, and Hansol Chemical.

Sanghyun Park

Korea Stock Market Monthly Recap #49 (June 2020)

Review of Top 10 Issues Related to Korean stock market, economy, & politics in June 2020: SK Biopharm IPO SK Holdings downgrade Capital gains...

Douglas Kim

Tokai Carbon Korea (TCK) - Priced for A "Near-Perfection"

In our view, Tokai Carbon Korea (064760 KS)'s valuation premium versus its peers appears reasonable but priced to "near-perfection." A key risk...

Douglas Kim

"Buy the Rumor" Of Upcoming KOSPI200 Rebalance in 12/2020 & "Sell the News" Of 6/2020

In this insight, we provide an analysis of "buying the rumor" of potential additions to the next KOSPI200 rebalance in December 2020 as well...

Douglas Kim

Screening the Silk Road: Q2-2020 Small-Mid Cap GARP (Zulu Warrior Screening)

Growth as an investment style has remained prominent over the COVID-19 period, reinforcing its decade long dominance over the value. The key...

David Lepper

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)