Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A double dose of stubs this week as <a href="https://www.smartkarma.com/entities/hanmi-science-co-ltd" target="_blank" data-smartkarma-citation="entities:18549:1" rel="noopener">Hanmi Science (008930 KS)</a> comes up "cheap" on my monitor.</li>
<li>Preceding my comments on Hanmi are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


A double dose of stubs this week as Hanmi Science (008930 KS) comes up "cheap" on my monitor.
Preceding my comments on Hanmi are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Hanmi Science's Implied Stub Nearing All-Time Lows

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

<ul>
<li>Following the two tender offers, Han &amp; Co now holds more than 90% of the common shares in <a href="https://www.smartkarma.com/entities/lutronic-corp" target="_blank" data-smartkarma-citation="entities:2250:1" rel="noopener">Lutronic Corp (085370 KS)</a> and is looking to buy the remaining shares.</li>
<li>
<a href="https://www.smartkarma.com/entities/lutronic-corp" target="_blank" data-smartkarma-citation="entities:2250:1" rel="noopener">Lutronic Corp (085370 KS)</a> is a member of the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index</a> and delisting would mean an index replacement. <a href="https://www.smartkarma.com/entities/value-added-technologies" target="_blank" data-smartkarma-citation="entities:9946:1" rel="noopener">Value Added Technologies (043150 KS)</a> is a potential inclusion.</li>
<li>
<a href="https://www.smartkarma.com/entities/value-added-technologies" target="_blank" data-smartkarma-citation="entities:9946:1" rel="noopener">Value Added Technologies (043150 KS)</a> has underperformed its peers and trades cheaper on nearly all valuation parameters.</li>
</ul>


Following the two tender offers, Han &amp; Co now holds more than 90% of the common shares in Lutronic Corp (085370 KS) and is looking to buy the remaining shares.

Lutronic Corp (085370 KS) is a member of the KOSDAQ 150 Index and delisting would mean an index replacement. Value Added Technologies (043150 KS) is a potential inclusion.

Value Added Technologies (043150 KS) has underperformed its peers and trades cheaper on nearly all valuation parameters.


KOSDAQ150 Ad Hoc Index Rebalance Preview: VAT Could Replace Lutronic

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Interesting news came out for <a href="https://www.smartkarma.com/entities/991" target="_blank" data-smartkarma-citation="entities:991:1">Celltrion Inc (068270 KS)</a>. Celltrion's retail investors are now demanding a KOSPI move from KOSDAQ. Nearly 10,000 retail investors are demanding a KOSPI move and asking Celltrion to hold an EGM for this. Celltrion is saying that it will review the demand.<div class="content-highlight">Here is the news article about this (source: Chosun Biz)<a href="http://biz.chosun.com/site/data/html_dir/2017/08/08/2017080801568.html" target="_blank">http://biz.chosun.com/site/data/html_dir/2017/08/08/2017080801568.html</a></div>Celltrion's retail investors are saying that the company has suffered greatly from short trading in the past several years. They are saying KOSPI move will reduce short trading volume on Celltrion as more passive money will come to it, thereby improving its valuation.

Interesting news came out for Celltrion Inc (068270 KS). Celltrion's retail investors are now demanding a KOSPI move from KOSDAQ. Nearly 10,000 retail investors are demanding a KOSPI move and asking Celltrion to hold an EGM for this. Celltrion is saying that it will review the demand.Here is the news article about this (source: Chosun Biz)http://biz.chosun.com/site/data/html_dir/2017/08/08/2017080801568.htmlCelltrion's retail investors are saying that the company has suffered greatly from short trading in the past several years. They are saying KOSPI move will reduce short trading volume on Celltrion as more passive money will come to it, thereby improving its valuation.

NPS' Passive Investing May Come to an End - Impact on Celltrion's KOSPI Move

Pharma/ Biotechnology Investments Specialist, Vasuda Capital Management

Dr. Bhavneesh Sharma, MD, MBA

Pharma/ Biotechnology Investments Specialist

Vasuda Capital Management

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/12476" target="_blank" data-smartkarma-citation="entities:12476:1">Hanmi Pharm Co Ltd (128940 KS)</a> stock has fallen from recent highs after Boehringer pulled out of an oncology deal and short-sellers piled on the company's stock. The company is investing heavily in R&amp;D and the management has shown ROIC higher than the pharmaceutical industry average. We see value in the company's R&amp;D pipeline, especially in oncology and diabetes/obesity indications. The company's relative valuation and financial efficiency measures are better than the pharmaceutical industry average. Shares could rise more than 50% from the current level by end of 2018.

Hanmi Pharm Co Ltd (128940 KS) stock has fallen from recent highs after Boehringer pulled out of an oncology deal and short-sellers piled on the company's stock. The company is investing heavily in R&amp;D and the management has shown ROIC higher than the pharmaceutical industry average. We see value in the company's R&amp;D pipeline, especially in oncology and diabetes/obesity indications. The company's relative valuation and financial efficiency measures are better than the pharmaceutical industry average. Shares could rise more than 50% from the current level by end of 2018.

Hanmi Pharmaceutical: This Korean Pharma Giant's Stock Could Rebound More than 50%.

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Thematic (Sector/Industry)

<blockquote>
“Using leverage to cure the problems of too much leverage is not homeopathy, it is denial. The debt crisis is not a temporary problem, it is a structural one. We need rehab.”
―Nassim Nicholas Taleb, Ten principles for a Black Swan-proof world (2009)
</blockquote>This morning, Hanjin Shipping Co. said it will apply for court receivership after lenders decided to halt all support. We have been highlighting these risks from 2013 and in our last update on troubled container shipping company, we had highlighted the…


“Using leverage to cure the problems of too much leverage is not homeopathy, it is denial. The debt crisis is not a temporary problem, it is a structural one. We need rehab.”
―Nassim Nicholas Taleb, Ten principles for a Black Swan-proof world (2009)
This morning, Hanjin Shipping Co. said it will apply for court receivership after lenders decided to halt all support. We have been highlighting these risks from 2013 and in our last update on troubled container shipping company, we had highlighted the…

Hanjin Shipping(117930 KS) - Borrowed Time Comes to an End

South Korea

JVM CO., LTD. develops, manufactures, and maintains pharmaceutical automated system equipment.  The Company's main products include automatic tablet dispensing & packaging system (ATDPS), automatic medicine packing machines, tablet packaging papers, and tablet counting machines.

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Jvm Co Ltd (054950 KS)

StubWorld: Hanmi Science's Implied Stub Nearing All-Time Lows

IF short selling were available, I'd look to short Pharma, long Science here. I might look to go long outright in Science; but it's not a strong...

David Blennerhassett

KOSDAQ150 Ad Hoc Index Rebalance Preview: VAT Could Replace Lutronic

HanCo holds over 90% of the shares in Lutronic. if Lutronic is delisted, Value Added Tech could be added to the KOSDAQ150 Index. Value Added Tech...

Brian Freitas

NPS' Passive Investing May Come to an End - Impact on Celltrion's KOSPI Move

Interesting news came out for Celltrion Inc (068270 KS). Celltrion's retail investors are now demanding a KOSPI move from KOSDAQ. Nearly 10,000...

Sanghyun Park

Hanmi Pharmaceutical: This Korean Pharma Giant's Stock Could Rebound More than 50%.

Hanmi Pharm Co Ltd (128940 KS) stock has fallen from recent highs after Boehringer pulled out of an oncology deal and short-sellers piled on the...

Dr. Bhavneesh Sharma, MD, MBA

Hanjin Shipping(117930 KS) - Borrowed Time Comes to an End

“Using leverage to cure the problems of too much leverage is not homeopathy, it is denial. The debt crisis is not a temporary problem, it is a...

Drewry Maritime Financial Research

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