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>Despite this pattern persisting for years, there has still been a significant price impact each time it surfaces. Therefore, we should pay attention to the upcoming CB conversion schedule.</li>
<li>A consistent observation is that the price impact is most significant at the announcement of early redemption requests.</li>
<li>The anticipated announcement dates for the forthcoming early redemption requests are: around May 20th (195th conversion), around September 20th (196th conversion), and around March 20th of next year (197th conversion).</li>
</ul>


Despite this pattern persisting for years, there has still been a significant price impact each time it surfaces. Therefore, we should pay attention to the upcoming CB conversion schedule.
A consistent observation is that the price impact is most significant at the announcement of early redemption requests.
The anticipated announcement dates for the forthcoming early redemption requests are: around May 20th (195th conversion), around September 20th (196th conversion), and around March 20th of next year (197th conversion).


Find Out When HMM's Upcoming Early Redemption Requests Might Drop

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 Jun 28th which has an aggregated short interest worth USD5.9bn.</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 Lg Electronics, Hyundai Motor.</li>
</ul>


We analyzed the changes in short interest of KRX Stocks as of Jun 28th which has an aggregated short interest worth USD5.9bn.
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 Lg Electronics, Hyundai Motor.


KRX Short Interest Weekly (Jun 28th): Lg Electronics, Hyundai Motor

<ul>
<li>Should the stock conversion decision be reached this week, the new shares will be listed on the 15th of the upcoming month. So, they will officially debut on October 16th.</li>
<li>On the day of the new share listing during the immediate previous case, the price dropped by 2.36%, and on the very next trading day, it declined by 3.72%.</li>
<li>Given the present dilution rate of 30%, there is a higher probability of even more pronounced price movements in the same direction.</li>
</ul>


Should the stock conversion decision be reached this week, the new shares will be listed on the 15th of the upcoming month. So, they will officially debut on October 16th.
On the day of the new share listing during the immediate previous case, the price dropped by 2.36%, and on the very next trading day, it declined by 3.72%.
Given the present dilution rate of 30%, there is a higher probability of even more pronounced price movements in the same direction.


Seizing a Trading Opportunity Aimed at HMM's New Stock Listing Date

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>After the market close on 21 August, it was reported that Harim Group, Dongwon Group, LX Group, and Hapag-Lloyd have been short-listed as preliminary bidders for HMM.</li>
<li>KDB and KOBC are selling 38.9% stake in HMM on a fully diluted basis. The local media have mentioned that the potential sales price could be about 5-6 trillion won.</li>
<li>We continue to have a Negative view of HMM. e expect additional 20-30%+ downside risk over the next 6-12 months.</li>
</ul>


After the market close on 21 August, it was reported that Harim Group, Dongwon Group, LX Group, and Hapag-Lloyd have been short-listed as preliminary bidders for HMM.
KDB and KOBC are selling 38.9% stake in HMM on a fully diluted basis. The local media have mentioned that the potential sales price could be about 5-6 trillion won.
We continue to have a Negative view of HMM. e expect additional 20-30%+ downside risk over the next 6-12 months.


Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]

<ul>
<li>The Korean government has initiated the M&amp;A privatization of HMM, the largest container shipping company in Korea. </li>
<li>We are Negative on the shares of HMM Co., Ltd. (011200 KS) in the next 6-12 months. We expect additional 20% to 30%+ downside risk on HMM in this period.</li>
<li>Although HMM has a strong balance sheet, more investors are likely to emphasize on the negatives including excessive share dilution risk and worsening environment for the global shipping industry.</li>
</ul>


The Korean government has initiated the M&amp;A privatization of HMM, the largest container shipping company in Korea. 
We are Negative on the shares of HMM Co., Ltd. (011200 KS) in the next 6-12 months. We expect additional 20% to 30%+ downside risk on HMM in this period.
Although HMM has a strong balance sheet, more investors are likely to emphasize on the negatives including excessive share dilution risk and worsening environment for the global shipping industry.


Privatization of HMM: Enormous Shares Dilution Risk

South Korea

HMM Co., Ltd. provides marine transportation services.  The Company commands different types of vessels including full container vessels, oil tankers, car carriers, LNG carriers, bulk carriers, and tramps.

Price Gauge
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HMM Co., Ltd. (011200 KS)

Find Out When HMM's Upcoming Early Redemption Requests Might Drop

This post aims to pinpoint the anticipated timing of future early redemption requests by HMM, leveraging insights gleaned from the announcement...

Sanghyun Park

KRX Short Interest Weekly (Jun 28th): Lg Electronics, Hyundai Motor

We analyzed KRX short interest report for the past week and highlighted short interest changes in Lg Electronics, Hyundai Motor.

Ke Yan, CFA, FRM

Seizing a Trading Opportunity Aimed at HMM's New Stock Listing Date

The disclosure confirms HMM's 200M new shares will list on November 10th, derived from the conversion of KDB and KOBC's BW/CB holdings. The listing...

Sanghyun Park

Privatization of HMM: Hapag-Lloyd, Harim, Dongwon, and LX Groups [Short-Listed Bidding Candidates]

Kim Jae-cheol, the honorary chairman of Dongwon Group, expressed his determination to acquire HMM today, saying, “I think the acquisition of HMM is...

Douglas Kim

Privatization of HMM: Enormous Shares Dilution Risk

The Korean government has initiated the privatization of HMM, the largest container shipping company in Korea. We are Negative on the shares of HMM...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)