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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>The review period for the March rebalance ends on 31 January, the announcement of the changes will be end February/beginning March, implementation will be at the close on 10 March.</li>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> will be included in the Battery index, and there will be other changes to the Bio, Internet, Game and BBIG indices.</li>
<li>The largest selling is expected to be on <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a> due to a potential downweight in the Internet index and a deletion from the BBIG index.</li>
</ul>


The review period for the March rebalance ends on 31 January, the announcement of the changes will be end February/beginning March, implementation will be at the close on 10 March.

LG Energy Solution (LGENERGY KS) will be included in the Battery index, and there will be other changes to the Bio, Internet, Game and BBIG indices.
The largest selling is expected to be on Douzone Bizon (012510 KS) due to a potential downweight in the Internet index and a deletion from the BBIG index.


KRX BBIG Index Rebalance Preview (March): LG Energy Should Be Added; Plus Other Changes

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>SK IE Technology's second largest shareholder Premier Partners is selling its shares through a block deal worth between 465 billion won to 538.9 billion won.</li>
<li>We would AVOID this block deal due to lack valuation merits coupled with additional overhang from the remaining shares by Premier Partners post this block sale. </li>
<li>SK IET, which is trading at 51.7x P/E and 5.3x P/B consensus 2022 earnings estimates, appears to be fully valued at current levels. </li>
</ul>


SK IE Technology's second largest shareholder Premier Partners is selling its shares through a block deal worth between 465 billion won to 538.9 billion won.
We would AVOID this block deal due to lack valuation merits coupled with additional overhang from the remaining shares by Premier Partners post this block sale. 
SK IET, which is trading at 51.7x P/E and 5.3x P/B consensus 2022 earnings estimates, appears to be fully valued at current levels. 


SK IE Technology - Block Deal Sale by Second Largest Shareholder Premier Partners

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.

<p>The quarterly rebalancing of the WISE Secondary Cell Index is this Friday. So, rebalancing trading takes place this Thursday at the close.</p><div class="content-highlight"><ul>
<li><strong>The TIGER ETF (305540) is the only ETF that tracks this index. However, the recent AUM has risen sharply, and as of yesterday's closing price, the AUM is approaching KRW 1 trillion.</strong></li>
<li><strong>There is no add (or delete) in this rebalancing that will cause a substantial passive impact like SKIET in the previous rebalancing.</strong></li>
<li><strong>But the AUM is massive, so the level of stock price fluctuations potentially resulting from index weight changes is expected to be large enough to deserve our attention.</strong></li>
</ul></div><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Index summary"}'>Index summary</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Index name"}'>Index name</td>
<td data-sheets-value='{"1":2,"2":"Wise Secondary Cell"}'><div><div>Wise Secondary Cell</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"ETF"}'>ETF</td>
<td data-sheets-value='{"1":2,"2":"Mirae Asset TIGER Secondary Cell ETF"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'><div><div>Mirae Asset TIGER Secondary Cell ETF</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td data-sheets-value='{"1":2,"2":"305540"}' data-sheets-formula='="305540"'>305540</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"AUM"}'><strong>AUM</strong></td>
<td data-sheets-value='{"1":3,"3":999.267}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula="=R[1]C[0]*R[2]C[0]/1000000000"><strong>₩999.3B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SO"}'><strong>SO</strong></td>
<td data-sheets-value='{"1":3,"3":44650000}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'><strong>44,650,000</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Number of constituents"}'>Number of constituents</td>
<td data-sheets-value='{"1":3,"3":26}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>26</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Weight type"}'>Weight type</td>
<td data-sheets-value='{"1":2,"2":"Float-adjusted market cap"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>Float-adjusted market cap</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Cap"}'>Cap</td>
<td data-sheets-value='{"1":3,"3":0.1}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>10.00%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing cycle"}'>Rebalancing cycle</td>
<td data-sheets-value='{"1":2,"2":"Quarterly"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>Quarterly</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing month"}'>Rebalancing month</td>
<td data-sheets-value='{"1":2,"2":"January, April, July, and October"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>January, April, July, and October</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Announcement date"}'>Announcement date</td>
<td data-sheets-value='{"1":2,"2":"Only ETF operator is notified"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>Only ETF operator is notified</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Implementation date"}'>Implementation date</td>
<td data-sheets-value='{"1":2,"2":"The trading day following the option expiration dates"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>The trading day following the option expiration dates</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Next implementation date"}'>Next implementation date</td>
<td data-sheets-value='{"1":2,"2":"October 15, 2021"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div>October 15, 2021</div></div></td>
</tr>
<tr><td colspan="2"><div><div></div></div></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing trading"}'><strong>Rebalancing trading</strong></td>
<td data-sheets-value='{"1":2,"2":"At the close on October 14, 2021"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div><strong>At the close on October 14, 2021</strong></div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Screening base date"}'><strong>Screening base date</strong></td>
<td data-sheets-value='{"1":2,"2":"The last trading day of the month preceding the date of regular rebalancing"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div><strong>The last trading day of the month preceding the date of regular rebalancing</strong></div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Screening period"}'><strong>Screening period</strong></td>
<td data-sheets-value='{"1":2,"2":"The three months preceding the screening base date"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div><div><strong>The three months preceding the screening base date</strong></div></div></td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX &amp; TIGER ETF"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=PDF!R[9]C[0]">Source: KRX &amp; TIGER ETF</td></tr>
</tbody>
</table>

The quarterly rebalancing of the WISE Secondary Cell Index is this Friday. So, rebalancing trading takes place this Thursday at the close.
The TIGER ETF (305540) is the only ETF that tracks this index. However, the recent AUM has risen sharply, and as of yesterday's closing price, the AUM is approaching KRW 1 trillion.
There is no add (or delete) in this rebalancing that will cause a substantial passive impact like SKIET in the previous rebalancing.
But the AUM is massive, so the level of stock price fluctuations potentially resulting from index weight changes is expected to be large enough to deserve our attention.






Index summary

Index name
Wise Secondary Cell


ETF
Mirae Asset TIGER Secondary Cell ETF


Ticker
305540


AUM
₩999.3B


SO
44,650,000


Number of constituents
26


Weight type
Float-adjusted market cap


Cap
10.00%


Rebalancing cycle
Quarterly


Rebalancing month
January, April, July, and October


Announcement date
Only ETF operator is notified


Implementation date
The trading day following the option expiration dates


Next implementation date
October 15, 2021



Rebalancing trading
At the close on October 14, 2021


Screening base date
The last trading day of the month preceding the date of regular rebalancing


Screening period
The three months preceding the screening base date

Source: KRX &amp; TIGER ETF



TIGER WISE Secondary Cell Index: October 14 Rabalancing Trading

Equity Capital Markets

<div class="content-highlight">
<p>Iljin Hysolus reduced its IPO price range. The company announced that it will reduce the IPO price range from 30,300 won to 37,300 won previously to 25,700 won to 34,300 won, respectively. This represents a decline of 8% to 15%.</p>
<p>The IPO deal size has been revised down to US$243 million to US$325 million. The expected market cap after the IPO is from 933 billion won (low) to 1,245 billion won (high). The book building for the institutional investors starts on 19 August 2021. </p>
<p><strong>Our revised base case valuation of Iljin Hysolus is implied market cap of 940 billion won or 25,898 won per share, which represents 1% higher than the low end of the IPO price range of 25,700 won. Given the lack of upside, we continue to maintain a NEGATIVE view of this IPO and we would avoid this IPO. </strong></p>
</div><table class="table table-striped">
<colgroup>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="width: 240pt;">Deal Specifics of the Iljin Hysolus IPO (Revised):</td>
<td style="width: 238pt;"> </td>
</tr>
<tr>
<td style="width: 240pt;">Lead underwriters of the IPO: </td>
<td style="width: 238pt;">Mirae Asset Securities, Samsung Securities</td>
</tr>
<tr>
<td style="width: 240pt;">Expected IPO price per share: </td>
<td style="width: 238pt;">25,700 won (low)/34,300 won (high)</td>
</tr>
<tr>
<td style="width: 240pt;">Number of Shares for IPO:</td>
<td style="width: 238pt;">10.89m shares (7.26m new shares and 3.63m old shares)</td>
</tr>
<tr>
<td style="width: 240pt;">IPO base deal size: </td>
<td style="width: 238pt;">US$243 mn (low);  US$325 mn (high)</td>
</tr>
<tr>
<td style="width: 240pt;">Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 238pt;">36.31m shares</td>
</tr>
<tr>
<td style="width: 240pt;">Expected market cap after IPO:</td>
<td style="width: 238pt;">933 billion won (low)/1,245 billion won (high)</td>
</tr>
<tr>
<td style="width: 240pt;">Book open: </td>
<td style="text-align: left; width: 238pt;">19-Aug-21</td>
</tr>
<tr>
<td style="width: 240pt;">Book closed:</td>
<td style="text-align: left; width: 238pt;">20-Aug-21</td>
</tr>
<tr>
<td style="width: 240pt;">Listing date: </td>
<td style="text-align: left; width: 238pt;">TBD</td>
</tr>
<tr>
<td style="width: 240pt;">Source: Company data</td>
<td style="width: 238pt;"> </td>
</tr>
</tbody>
</table>


Iljin Hysolus reduced its IPO price range. The company announced that it will reduce the IPO price range from 30,300 won to 37,300 won previously to 25,700 won to 34,300 won, respectively. This represents a decline of 8% to 15%.
The IPO deal size has been revised down to US$243 million to US$325 million. The expected market cap after the IPO is from 933 billion won (low) to 1,245 billion won (high). The book building for the institutional investors starts on 19 August 2021. 
Our revised base case valuation of Iljin Hysolus is implied market cap of 940 billion won or 25,898 won per share, which represents 1% higher than the low end of the IPO price range of 25,700 won. Given the lack of upside, we continue to maintain a NEGATIVE view of this IPO and we would avoid this IPO. 







Deal Specifics of the Iljin Hysolus IPO (Revised):
 


Lead underwriters of the IPO: 
Mirae Asset Securities, Samsung Securities


Expected IPO price per share: 
25,700 won (low)/34,300 won (high)


Number of Shares for IPO:
10.89m shares (7.26m new shares and 3.63m old shares)


IPO base deal size: 
US$243 mn (low);  US$325 mn (high)


Expected common shares outstanding, fully diluted (post-IPO):  
36.31m shares


Expected market cap after IPO:
933 billion won (low)/1,245 billion won (high)


Book open: 
19-Aug-21


Book closed:
20-Aug-21


Listing date: 
TBD


Source: Company data
 




<p>Our base case valuation of Iljin Hysolus is implied market cap of 817.6 billion won or 22,517 won per share. This represents 26% lower than the low end of the IPO price range of 30,300 won. Given the lower target price versus the IPO price range, we would AVOID this deal. </p><div><p>Established in 2012, Iljin Hysolus is a hydrogen mobility-related parts company that provides hydrogen fuel tanks and modules based on hydrogen storage technology. The company supplied hydrogen fuel tanks for the first time in the industry to the Tucson hydrogen electric vehicle, which Hyundai Motors successfully commercialized in 2014. Since then, it has been supplying hydrogen fuel tanks to hydrogen fuel cell vehicles (FCEV) 'Nexo' and hydrogen buses. </p></div>

Our base case valuation of Iljin Hysolus is implied market cap of 817.6 billion won or 22,517 won per share. This represents 26% lower than the low end of the IPO price range of 30,300 won. Given the lower target price versus the IPO price range, we would AVOID this deal. Established in 2012, Iljin Hysolus is a hydrogen mobility-related parts company that provides hydrogen fuel tanks and modules based on hydrogen storage technology. The company supplied hydrogen fuel tanks for the first time in the industry to the Tucson hydrogen electric vehicle, which Hyundai Motors successfully commercialized in 2014. Since then, it has been supplying hydrogen fuel tanks to hydrogen fuel cell vehicles (FCEV) 'Nexo' and hydrogen buses. 

South Korea

Lotte Energy Materials Corporation manufactures and distributes electric foils. The Company produces printed circuit board and lithium ion secondary batteries elecfoil, electrolytic and epoxy copper foil, electrolytic capacitor aluminum foil, and other related products. Lotte Energy Materials also offers energy and glass and window construction services.

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

Lotte Energy Materials (020150 KS)

KRX BBIG Index Rebalance Preview (March): LG Energy Should Be Added; Plus Other Changes

LG Energy should be added to the Secondary Battery and BBIG indices. There are changes to the Bio, Internet and Game indices too. Douzone Bizon...

Brian Freitas

SK IE Technology - Block Deal Sale by Second Largest Shareholder Premier Partners

SK IE Technology's second largest shareholder Premier Partners is selling its shares through a block deal worth between 465 billion won to 538.9...

Douglas Kim

TIGER WISE Secondary Cell Index: October 14 Rabalancing Trading

This post looks at the latest situation of the TIGER WISE Secondary Cell rebalancing trading scheduled for this Thursday.

Sanghyun Park

Iljin Hysolus Reduces IPO Price Range

Iljin Hysolus reduced its IPO price range. The company announced that it will reduce the IPO price range to 25,700 won to 34,300 won. We continue...

Douglas Kim

Iljin Hysolus IPO Valuation Analysis

Our base case valuation of Iljin Hysolus is implied market cap of 817.6 billion won or 22,517 won per share. Given the lower target price versus...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)