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>A trading dynamic that is drawing attention is the possibility of Chung Eui-sun's purchase of a stake in Mobis, triggering to boost Mobis' relative share price to Hyundai Motor.</li>
<li>Chung may push ahead with the Glovis → Mobis swap using the substantially increased value of Glovis' stake. Carlyle, who serves as Chung's ally, may additionally park Chung's Glovis stake</li>
<li>Chung uses the proceeds to purchase a stake in Mobis. Unlike in 2020, likely, he will only purchase Mobis shares this time.</li>
</ul>


A trading dynamic that is drawing attention is the possibility of Chung Eui-sun's purchase of a stake in Mobis, triggering to boost Mobis' relative share price to Hyundai Motor.
Chung may push ahead with the Glovis → Mobis swap using the substantially increased value of Glovis' stake. Carlyle, who serves as Chung's ally, may additionally park Chung's Glovis stake
Chung uses the proceeds to purchase a stake in Mobis. Unlike in 2020, likely, he will only purchase Mobis shares this time.


A Substantial Trade Seems Lurking on Hyundai Mobis with Chung's Possible Stake Purchase

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>With the Carlyle Group taking a 10% stake in Hyundai Glovis, we believe there could be increasing pressures including through higher dividends and buybacks to return capital to shareholders.</li>
<li>Hyundai Glovis is likely to get re-rated going forward, driven by profitable expansion into LNG and hydrogen transport, online used car sales platform, and more favorable shareholder return policies.</li>
<li>Hyundai Glovis' recent contract with Tesla to ship cars out of China is another positive sign on the growing importance of Hyundai Glovis in the Asian vehicles shipping market.</li>
</ul>


With the Carlyle Group taking a 10% stake in Hyundai Glovis, we believe there could be increasing pressures including through higher dividends and buybacks to return capital to shareholders.
Hyundai Glovis is likely to get re-rated going forward, driven by profitable expansion into LNG and hydrogen transport, online used car sales platform, and more favorable shareholder return policies.
Hyundai Glovis' recent contract with Tesla to ship cars out of China is another positive sign on the growing importance of Hyundai Glovis in the Asian vehicles shipping market.


Hyundai Glovis: Increasing Pressure by the Carlyle Group & Minority Shareholders to Improve Value

Equity Capital Markets

<ul>
<li>Winia Aid is getting ready to complete its IPO in June. According to the bankers' valuation, market cap after the IPO is from 219 billion won to 249 billion won.</li>
<li>It has three main businesses including distribution, logistics, and services. Distribution and logistics are for Winia and other global products. Service is mainly for Apple's authorized service provider in Korea. </li>
<li>The company has a solid growth in sales and profits. From 2018 to 2021, the company's revenue and operating profit increased by 39.2% and 86.2% CAGR, respectively.</li>
</ul>


Winia Aid is getting ready to complete its IPO in June. According to the bankers' valuation, market cap after the IPO is from 219 billion won to 249 billion won.
It has three main businesses including distribution, logistics, and services. Distribution and logistics are for Winia and other global products. Service is mainly for Apple's authorized service provider in Korea. 
The company has a solid growth in sales and profits. From 2018 to 2021, the company's revenue and operating profit increased by 39.2% and 86.2% CAGR, respectively.


Hyundai Engineering   / Equity Capital Markets

<ul>
<li>Hyundai Engineering Co Ltd is getting ready to complete its IPO in KOSPI in February 2022. The IPO price range is from 57,900 won to 75,700 won per share. </li>
<li>The IPO of Hyundai Engineering could be an important catalyst for the restructuring of the entire Hyundai Motor Group as Chung Eui-Sun could increase his stake in Hyundai Mobis.</li>
<li>The bankers included too many overseas comps with fat valuation multiples. This is a bit concerning in terms of how the bankers derived the IPO price range.</li>
</ul>


Hyundai Engineering Co Ltd is getting ready to complete its IPO in KOSPI in February 2022. The IPO price range is from 57,900 won to 75,700 won per share. 
The IPO of Hyundai Engineering could be an important catalyst for the restructuring of the entire Hyundai Motor Group as Chung Eui-Sun could increase his stake in Hyundai Mobis.
The bankers included too many overseas comps with fat valuation multiples. This is a bit concerning in terms of how the bankers derived the IPO price range.


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

In this weeks recap, we look at:<ul>
<li>the <a href="https://www.smartkarma.com/entities/santos-ltd" target="_blank" data-smartkarma-citation="entities:711:1" rel="noopener">Santos Ltd (STO AU)</a> / <a href="https://www.smartkarma.com/entities/oil-search-ltd" target="_blank" data-smartkarma-citation="entities:773:1" rel="noopener">Oil Search Ltd (OSH AU)</a> merger and the impact on the S&amp;P/ASX 100 and <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> </li>
<li>the spread on the <a href="https://www.smartkarma.com/entities/keppel-corp-ltd" target="_blank" data-smartkarma-citation="entities:12:1" rel="noopener">Keppel Corp (KEP SP)</a> / <a href="https://www.smartkarma.com/entities/singapore-press-holdings-limited" target="_blank" data-smartkarma-citation="entities:9952:1" rel="noopener">Singapore Press Holdings (SPH SP)</a> deal and potential index flows</li>
<li>the listing of <a href="https://www.smartkarma.com/entities/hyundai-heavy-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:33808:1" rel="noopener">Hyundai Heavy Industries (329180 KS)</a> and the potential Fast Entry into the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> </li>
<li>the potential changes to the <a href="https://www.smartkarma.com/entities/stock-exchange-of-thailand-set-50-index" target="_blank" data-smartkarma-citation="entities:31493:1" rel="noopener">Stock Exchange of Thailand SET 50 Index (SET50 INDEX)</a> at the December rebalance</li>
<li>the potential changes to the <a href="https://www.smartkarma.com/entities/hang-seng-tech-index" target="_blank" data-smartkarma-citation="entities:31367:1" rel="noopener">Hang Seng Tech Index (HSTECH INDEX)</a> at the December rebalance</li>
<li>the potential changes to the Hang Seng Composite Index (HSCI) at the December and March rebalances</li>
</ul>There are no major index events in the coming week - there were enough in the last week!There were substantial inflows to onshore China ETFs in the last week, while there was finally an outflow (albeit a small one) from <a href="https://www.smartkarma.com/entities/kraneshares-csi-china-internet-fund" target="_blank" data-smartkarma-citation="entities:28208:1" rel="noopener">KraneShares CSI China Internet Fund (KWEB US)</a>.

In this weeks recap, we look at:
the Santos Ltd (STO AU) / Oil Search Ltd (OSH AU) merger and the impact on the S&amp;P/ASX 100 and S&amp;P/ASX 200 (AS51 INDEX) 
the spread on the Keppel Corp (KEP SP) / Singapore Press Holdings (SPH SP) deal and potential index flows
the listing of Hyundai Heavy Industries (329180 KS) and the potential Fast Entry into the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) 
the potential changes to the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) at the December rebalance
the potential changes to the Hang Seng Tech Index (HSTECH INDEX) at the December rebalance
the potential changes to the Hang Seng Composite Index (HSCI) at the December and March rebalances
There are no major index events in the coming week - there were enough in the last week!There were substantial inflows to onshore China ETFs in the last week, while there was finally an outflow (albeit a small one) from KraneShares CSI China Internet Fund (KWEB US). 

Index Rebalance & ETF Flow Recap: STO/OSH, KEP/SPH, HHI, SET50, HSTECH, HSCI

South Korea

Hyundai Glovis Co., Ltd. provides domestic and international logistic services. The Company's services include domestic transportation, storage, packaging, vehicle logistic, and logistic consulting.  GLOVIS also runs automobile auction market for used vehicle.

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Hyundai Glovis (086280 KS)

A Substantial Trade Seems Lurking on Hyundai Mobis with Chung's Possible Stake Purchase

This post investigates a substantial trade that seems to be lurking on Hyundai Mobis at this price level, particularly relative to Glovis and...

Sanghyun Park

Hyundai Glovis: Increasing Pressure by the Carlyle Group & Minority Shareholders to Improve Value

With the Carlyle Group taking a 10% stake in Hyundai Glovis, we believe there could be increasing pressures including through higher dividends and...

Douglas Kim

Winia Aid IPO Preview

Winia Aid is getting ready to complete its IPO in June. It has three main businesses including distribution, logistics, and services. The IPO price...

Douglas Kim

Hyundai Engineering IPO Preview

Hyundai Engineering Co Ltd is getting ready to complete its IPO in KOSPI in February 2022. The IPO price range is from 57,900 won to 75,700 won per...

Douglas Kim

Index Rebalance & ETF Flow Recap: STO/OSH, KEP/SPH, HHI, SET50, HSTECH, HSCI

This recap highlights Insights covering the index rebalance space in Asia as well as announcements that could result in index changes. We also look...

Brian Freitas

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