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 KDIC sold a 2.33% stake in Woori Financial through an after-hours block sale. From a passive flow perspective, this is quite similar to KSOE's HHI block deals yesterday.</li>
<li>Woori is likely to show a similar share price movement as HHI. Expectations for the passive inflow effect must have dissipated, and a short-term share price correction is now inevitable.</li>
<li>However, the passive inflow sizes are still too substantial. With this in mind, we need to consider a strategy that approaches this price correction as a re-entry opportunity.</li>
</ul>


The KDIC sold a 2.33% stake in Woori Financial through an after-hours block sale. From a passive flow perspective, this is quite similar to KSOE's HHI block deals yesterday.
Woori is likely to show a similar share price movement as HHI. Expectations for the passive inflow effect must have dissipated, and a short-term share price correction is now inevitable.
However, the passive inflow sizes are still too substantial. With this in mind, we need to consider a strategy that approaches this price correction as a re-entry opportunity.


Woori Financial Block Deals: Another Shares Let-Go Event for Passive Buying

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

HD Hyundai Heavy Industries  / Event-Driven

<ul>
<li>After the market close today, Korea Shipbuilding &amp; Offshore Engineering announced that will sell 1.7% of its shares (1.5 million shares) in Hyundai Heavy Industries in a block deal.</li>
<li>The block deal sale is expected to take place on the morning of 17 May. The block deal price is expected to be 120,650 won.</li>
<li>We would take this deal as we believe this sale is likely to have a short term positive impact on HHI and increase the free float of HHI.</li>
</ul>


After the market close today, Korea Shipbuilding &amp; Offshore Engineering announced that will sell 1.7% of its shares (1.5 million shares) in Hyundai Heavy Industries in a block deal.
The block deal sale is expected to take place on the morning of 17 May. The block deal price is expected to be 120,650 won.
We would take this deal as we believe this sale is likely to have a short term positive impact on HHI and increase the free float of HHI.


Block Deal Sale of Hyundai Heavy Industries

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>The terms for the proposed combination of Keppel O&amp;M and <a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a> were announced. The agreed equity value exchange ratio between Keppel O&amp;M and Sembcorp Marine is 56%:44%. </li>
<li>The proposed combination will require <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> and Sembcorp Marine shareholder approvals at separate EGMs and is expected to close in 4Q2022.</li>
<li>The transaction is a big win for Keppel shareholders as the proposed combination creates S$9.4 billion of value, which is around 80% of Keppel’s market cap at the last close.</li>
</ul>


The terms for the proposed combination of Keppel O&amp;M and Sembcorp Marine (SMM SP) were announced. The agreed equity value exchange ratio between Keppel O&amp;M and Sembcorp Marine is 56%:44%. 
The proposed combination will require Keppel Corp (KEP SP) and Sembcorp Marine shareholder approvals at separate EGMs and is expected to close in 4Q2022.
The transaction is a big win for Keppel shareholders as the proposed combination creates S$9.4 billion of value, which is around 80% of Keppel’s market cap at the last close.


Keppel: A Massive Winner from Keppel O&M and Sembcorp Marine’s Combination

Equity Capital Markets

Hyundai Oilbank Co Ltd / Equity Capital Markets

<ul>
<li>Hyundai Oilbank is getting ready to complete its IPO as early as June 2022, which would make it one of the largest IPOs in Korea this year.</li>
<li>Local media have mentioned that the value of Hyundai Oilbank could be as high as 10 trillion won post IPO. </li>
<li>Our NAV analysis suggests a base case valuation of 69,231 won per share for HD Hyundai (formerly Hyundai Heavy Industries Holdings), representing a 21% upside from current levels. </li>
</ul>


Hyundai Oilbank is getting ready to complete its IPO as early as June 2022, which would make it one of the largest IPOs in Korea this year.
Local media have mentioned that the value of Hyundai Oilbank could be as high as 10 trillion won post IPO. 
Our NAV analysis suggests a base case valuation of 69,231 won per share for HD Hyundai (formerly Hyundai Heavy Industries Holdings), representing a 21% upside from current levels. 


Hyundai Oilbank: Getting Ready for an IPO as Early as June 2022

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yangzijiang-shipbuilding-holdings-limited" target="_blank" data-smartkarma-citation="entities:660:1" rel="noopener">Yangzijiang Shipbuilding (YZJSGD SP)</a> aims to spin off Yangzijiang Financial Holdings (YZJFH) through a dividend-in-specie of all the issued YZJFH shares to shareholders on a one-on-one basis.</li>
<li>YZJFH shares will be listed on the SGX-ST by way of an introduction. The EGM to approve the spin-off will be held on 18 April at 4 pm.</li>
<li>This transaction will unlock value. Our SoTP valuation is S$1.94 per share, which is a 22% upside to the last close price of S$1.59 per share.</li>
</ul>



Yangzijiang Shipbuilding (YZJSGD SP) aims to spin off Yangzijiang Financial Holdings (YZJFH) through a dividend-in-specie of all the issued YZJFH shares to shareholders on a one-on-one basis.
YZJFH shares will be listed on the SGX-ST by way of an introduction. The EGM to approve the spin-off will be held on 18 April at 4 pm.
This transaction will unlock value. Our SoTP valuation is S$1.94 per share, which is a 22% upside to the last close price of S$1.59 per share.


Yangzijiang: Proposed Spin-Off of YZJFH to Unlock Value

South Korea

HD Korea Shipbuilding & Offshore Engineering Co., Ltd. operates as a shipbuilding and offshore company. The Company provides industrial plant engineering, special and naval shipbuilding, marine engine and machinery, industrial machinery and energy services. HD Korea Shipbuilding & Offshore Engineering markets its products worldwide.

HD Korea Shipbuilding & Offshore Engineering (009540 KS)

HD Korea Shipbuilding & Offshore Engineering

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HD Korea Shipbuilding & Offshore Engineering (009540 KS)

Woori Financial Block Deals: Another Shares Let-Go Event for Passive Buying

This post examines the Woori Financial Group block deals by the KDIC this morning, which should be another shares let-go event for passive buying,...

Sanghyun Park

Block Deal Sale of Hyundai Heavy Industries

After the market close today, Korea Shipbuilding & Offshore Engineering announced that will sell 1.7% of its shares (1.5 million shares) in Hyundai...

Douglas Kim

Keppel: A Massive Winner from Keppel O&M and Sembcorp Marine’s Combination

The agreed equity value exchange ratio between Keppel O&M and Sembcorp Marine is 56%:44%. The transaction is a big win for Keppel shareholders as...

Arun George

Hyundai Oilbank: Getting Ready for an IPO as Early as June 2022

Hyundai Oilbank is getting ready to complete its IPO as early as June 2022, which would make it one of the largest IPOs in Korea this year.

Douglas Kim

Yangzijiang: Proposed Spin-Off of YZJFH to Unlock Value

The EGM to approve the spin-off of YZJFH will be held on 18 April at 4 pm. This transaction will unlock value. Our SoTP valuation is S$1.94 per...

Arun George

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