Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>Hyundai Motor (005380 KS) launched its long-awaited Ioniq 6 on 14 July. This is the first EV sedan by Hyundai Motor.</li>
<li>Ioniq 6 could be a big winner for Hyundai Motor. Among all the features of Ioniq 6, the driving range is the biggest improvement versus Ioniq 5. </li>
<li>The combination of attractive price, sleek design, and higher driving range is likely to result in a strong demand for Ioniq 6.</li>
</ul>


Hyundai Motor (005380 KS) launched its long-awaited Ioniq 6 on 14 July. This is the first EV sedan by Hyundai Motor.
Ioniq 6 could be a big winner for Hyundai Motor. Among all the features of Ioniq 6, the driving range is the biggest improvement versus Ioniq 5. 
The combination of attractive price, sleek design, and higher driving range is likely to result in a strong demand for Ioniq 6.


Hyundai Motor's Ioniq 6 - To Take Away More Market Share From Tesla Model 3 Sedan?

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The WisdomTree Emerging Markets High Dividend Index is a fundamentally weighted index that measures the performance of high dividend yield stocks within emerging markets.</li>
<li>The changes at the October rebalance were announced after market close on 4 October with implementation scheduled at the close on 16 October.</li>
<li>There are 241 adds and 208 deletes for the index with an estimated round-trip trade of US$2.5bn. There are many stocks with over 2x ADV to trade.</li>
</ul>


The WisdomTree Emerging Markets High Dividend Index is a fundamentally weighted index that measures the performance of high dividend yield stocks within emerging markets.
The changes at the October rebalance were announced after market close on 4 October with implementation scheduled at the close on 16 October.
There are 241 adds and 208 deletes for the index with an estimated round-trip trade of US$2.5bn. There are many stocks with over 2x ADV to trade.


WisdomTree Emerging Markets High Dividend Index Rebalance: US$2.5bn Round-Trip Trade

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>APAC offshore wind market faces regional competition as Typhoon Krathon spurs AI models to compete for accurate forecasting.</li><li>Ford Lio Ho revamps Kuga lineup in Taiwan's SUV market post-Krathon, focusing on supply chain resilience amid labor strikes and geopolitical tensions.</li><li>Hyundai Motor plans ambitious battery production strategy while DIGITIMES Research forecasts significant growth in global and Taiwan AI healthcare markets from 2023 to 2030.</li></ul>

APAC offshore wind market faces regional competition as Typhoon Krathon spurs AI models to compete for accurate forecasting.Ford Lio Ho revamps Kuga lineup in Taiwan's SUV market post-Krathon, focusing on supply chain resilience amid labor strikes and geopolitical tensions.Hyundai Motor plans ambitious battery production strategy while DIGITIMES Research forecasts significant growth in global and Taiwan AI healthcare markets from 2023 to 2030.

Tech Supply Chain Tracker (05-Oct-2024): APAC offshore wind market at crossroads.

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>Hyundai’s TSR target is 35%+ (dividends plus buybacks), up 10 percentage points from previous years. They’ve also set a new annual dividend of ₩10,000, paid evenly quarterly.</li>
<li>Hyundai's Value-Up targets may not fully meet market expectations, but the key is the timing. By aligning early with government policies, Hyundai has reduced risks and secured investment flow.</li>
<li>Hyundai plans a pref-skewed buyback, likely continuing this approach as retiring preferred shares first may boost ROE.</li>
</ul>


Hyundai’s TSR target is 35%+ (dividends plus buybacks), up 10 percentage points from previous years. They’ve also set a new annual dividend of ₩10,000, paid evenly quarterly.
Hyundai's Value-Up targets may not fully meet market expectations, but the key is the timing. By aligning early with government policies, Hyundai has reduced risks and secured investment flow.
Hyundai plans a pref-skewed buyback, likely continuing this approach as retiring preferred shares first may boost ROE.


Hyundai Motor's Value-Up Disclosure: Trading Implications from Release Timing & Pref-Skewed Buyback

<ul>
<li>The plan is to select 20 large-cap companies from around 30 with value-up disclosures by late August, then gradually expand the index's constituents.</li>
<li>Investors seeking both dividends and value-up benefits must buy stocks individually, as ETFs lack tax advantages, potentially triggering fund shifts from dividend ETFs to value-up stocks.</li>
<li>We can target stocks in dividend ETFs not making value-up disclosures, as they may face overhang risk during fund migration to the value-up index.</li>
</ul>


The plan is to select 20 large-cap companies from around 30 with value-up disclosures by late August, then gradually expand the index's constituents.
Investors seeking both dividends and value-up benefits must buy stocks individually, as ETFs lack tax advantages, potentially triggering fund shifts from dividend ETFs to value-up stocks.
We can target stocks in dividend ETFs not making value-up disclosures, as they may face overhang risk during fund migration to the value-up index.


Flow Developments to Watch as the Release of the Value-Up Index Approaches

South Korea

Hyundai Motor Company manufactures, sells, and exports passenger cars, trucks, and commercial vehicles. The Company also sells various auto parts and operates auto repair service centers throughout South Korea. Hyundai Motor provides financial services through its subsidiaries.

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Hyundai Motor (005385 KS)

WisdomTree Emerging Markets High Dividend Index Rebalance: US$2.5bn Round-Trip Trade

There are 241 adds/208 deletes for the WisdomTree Emerging Markets High Dividend Index. The round-trip trade is around US$2.5bn and there are a...

Brian Freitas

Tech Supply Chain Tracker (05-Oct-2024): APAC offshore wind market at crossroads.

APAC offshore wind market faces competition, Typhoon Krathon sparks battle among AI models. Taiwan's Ford Lio Ho ups SUV lineup, supply chain...

Tech Supply Chain Tracker

Hyundai Motor's Value-Up Disclosure: Trading Implications from Release Timing & Pref-Skewed Buyback

This post examines Hyundai Motor's Value-Up disclosure released today, focusing on potential trading implications, especially regarding the timing...

Sanghyun Park

Flow Developments to Watch as the Release of the Value-Up Index Approaches

This post investigates potential flow developments that we should watch as the the release of the value-up index approaches.

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hyundai Motor's Ioniq 6 - To Take Away More Market Share From Tesla Model 3 Sedan?

Hyundai Motor launched its long-awaited Ioniq 6 on 14 July. This is the first EV sedan by Hyundai Moto. Among all the features of Ioniq 6, the...

Douglas Kim

WisdomTree Emerging Markets High Dividend Index Rebalance: US$2.5bn Round-Trip Trade

There are 241 adds/208 deletes for the WisdomTree Emerging Markets High Dividend Index. The round-trip trade is around US$2.5bn and there are a...

Brian Freitas

Tech Supply Chain Tracker (05-Oct-2024): APAC offshore wind market at crossroads.

APAC offshore wind market faces competition, Typhoon Krathon sparks battle among AI models. Taiwan's Ford Lio Ho ups SUV lineup, supply chain...

Tech Supply Chain Tracker

Hyundai Motor's Value-Up Disclosure: Trading Implications from Release Timing & Pref-Skewed Buyback

This post examines Hyundai Motor's Value-Up disclosure released today, focusing on potential trading implications, especially regarding the timing...

Sanghyun Park

Flow Developments to Watch as the Release of the Value-Up Index Approaches

This post investigates potential flow developments that we should watch as the the release of the value-up index approaches.

Sanghyun Park