Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/motonic-corp" target="_blank" data-smartkarma-citation="entities:4404:1" rel="noopener">Motonic Corp (009680 KS)</a> is the 16th company in our Korea Small Cap Gems series. </li>
<li>Motonic's net cash (including treasury shares) total 432 billion won, which would represent 148% of the company's current market cap. </li>
<li>Established in 1974, Motonic Corp makes automobile parts in Korea. Its main products consist of liquefied petroleum injection (LPI) systems, clutches, and continuously variable valve lifts (CVVLs). </li>
</ul>



Motonic Corp (009680 KS) is the 16th company in our Korea Small Cap Gems series. 
Motonic's net cash (including treasury shares) total 432 billion won, which would represent 148% of the company's current market cap. 
Established in 1974, Motonic Corp makes automobile parts in Korea. Its main products consist of liquefied petroleum injection (LPI) systems, clutches, and continuously variable valve lifts (CVVLs). 


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>The screening period for the upcoming rebalancing is May 3-31. LG Energy satisfies the 3-month minimum listing requirement, so it becomes eligible to join the Index in this rebalancing.</li>
<li>LG Energy will likely receive an inflow of ₩44.6B, 0.04% of SO. Considering its tight real-world float (less than 6%), it would still be something we don't want to overlook.</li>
<li>What is critical is an estimated outflow size of Celltrion. It would be about the same amount, but relative to its ADTV, it will be -0.26x.</li>
</ul>


The screening period for the upcoming rebalancing is May 3-31. LG Energy satisfies the 3-month minimum listing requirement, so it becomes eligible to join the Index in this rebalancing.
LG Energy will likely receive an inflow of ₩44.6B, 0.04% of SO. Considering its tight real-world float (less than 6%), it would still be something we don't want to overlook.
What is critical is an estimated outflow size of Celltrion. It would be about the same amount, but relative to its ADTV, it will be -0.26x.


FnGuide TIGER Top 10 Rebalancing: LG Energy IN & Celltrion OUT

Samsung Electronics Pref Shares / Event-Driven

<ul>
<li>
 Korean prefs have outperformed ords on a YTD basis, probably due to the LG Energy listing. Many of KOSPI's large-cap stocks have seen an outflow to make room for LGES.</li>
<li>
Samsung Electronics 1P and Mirae Asset 2PB have a negative pref-ord YTD yield difference and are currently below-1.0σ on a 20-day MA.</li>
<li>Mirae widened the pref-ord spread by announcing an ord-only share buyback. So it should be seen as an outlier. Then, virtually all that remains is the Samsung Electronics 1P.</li>
</ul>



 Korean prefs have outperformed ords on a YTD basis, probably due to the LG Energy listing. Many of KOSPI's large-cap stocks have seen an outflow to make room for LGES.

Samsung Electronics 1P and Mirae Asset 2PB have a negative pref-ord YTD yield difference and are currently below-1.0σ on a 20-day MA.
Mirae widened the pref-ord spread by announcing an ord-only share buyback. So it should be seen as an outlier. Then, virtually all that remains is the Samsung Electronics 1P.


Korea Large-Cap Prefs: Pref-Ord YTD Yield Difference & 20-Day MA Sigma

Quantitative Analysis

<ul>
<li>In this insight, we discuss the dividends announcements which have been made by some of the largest Korean companies (25) in the past two days.</li>
<li>The average percentage difference in the actual versus the consensus estimate DPS in 2021 is 37.4% for these 25 companies.</li>
<li>Kia Motors now has a very nice dividend yield of 3.8%. DPS increased at an impressive rate of 200% YoY in 2021. </li>
</ul>


In this insight, we discuss the dividends announcements which have been made by some of the largest Korean companies (25) in the past two days.
The average percentage difference in the actual versus the consensus estimate DPS in 2021 is 37.4% for these 25 companies.
Kia Motors now has a very nice dividend yield of 3.8%. DPS increased at an impressive rate of 200% YoY in 2021. 


Key Highlights of 25 Major Korean Companies Making Dividends Announcements for 2021

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

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.

Equity Capital Markets

Hyundai Engineering   / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hyundai-engineering-co-ltd" target="_blank" data-smartkarma-citation="entities:33008:1" rel="noopener">Hyundai Engineering Co Ltd (HEC KS)</a> is looking to raise up to US$1bn in its Korea IPO.</li>
<li>There have been a number of news reports since our last note regarding the firm securing projects with an eco-friendly tilt, which could garner investor interest.</li>
<li>Despite its recent share price correction, were HEC to list at our fair value estimate, were one to short the holdco, there exists a 2-12% return potential. </li>
</ul>



Hyundai Engineering Co Ltd (HEC KS) is looking to raise up to US$1bn in its Korea IPO.
There have been a number of news reports since our last note regarding the firm securing projects with an eco-friendly tilt, which could garner investor interest.
Despite its recent share price correction, were HEC to list at our fair value estimate, were one to short the holdco, there exists a 2-12% return potential. 


Hyundai Engineering IPO - Eco-Friendlier However Parent Has Traded Down Since Our Last Note

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 (005380 KS)

Korea Small Cap Gem #16: Motonic Corp

Motonic's net cash (including treasury shares) total 432 billion won, which would represent 148% of the company's current market cap. Motonic is a...

Douglas Kim

FnGuide TIGER Top 10 Rebalancing: LG Energy IN & Celltrion OUT

This post previews the upcoming rebalancing of the FnGuide Top 10 Index (TIGER ETF, KS 292150), whose AUM currently amounts to ₩1T. At this point,...

Sanghyun Park

Korea Large-Cap Prefs: Pref-Ord YTD Yield Difference & 20-Day MA Sigma

This post examines Korea's large-cap preferred shares for their pref-ord YTD yield difference and sigma on a 20-day moving average.

Sanghyun Park

Key Highlights of 25 Major Korean Companies Making Dividends Announcements for 2021

In this insight, we discuss the dividends announcements which have been made by some of the largest Korean companies (25) in the past two days.

Douglas Kim

Hyundai Engineering IPO - Eco-Friendlier However Parent Has Traded Down Since Our Last Note

Hyundai Engineering Co Ltd (HEC KS) is looking to raise up to US$1bn in its Korea IPO. We discuss updates since our last note and a potential...

Clarence Chu

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