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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/country-garden-services-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services Holdings (6098 HK)</a> and <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>, <a href="https://www.smartkarma.com/entities/xinjiang-goldwind-science-technology-h" target="_blank" data-smartkarma-citation="entities:10112:1" rel="noopener">Xinjiang Goldwind Science &amp; Technology H (2208 HK)</a>, <a href="https://www.smartkarma.com/entities/shanghai-fosun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:8045:1" rel="noopener">Shanghai Fosun Pharmaceutical (Group) (2196 HK)</a> and <a href="https://www.smartkarma.com/entities/new-oriental-education-technology-group" target="_blank" data-smartkarma-citation="entities:32210:1" rel="noopener">New Oriental Education &amp; Technology Group (9901 HK)</a>. Shorts increased in the Consumer Discretionary, Financials, Real Estate, Communication Services and Industrial sectors.</p></div><div><p>In Japan, stocks increased on <a href="https://www.smartkarma.com/entities/daito-trust-construct-co-ltd" target="_blank" data-smartkarma-citation="entities:10503:1" rel="noopener">Daito Trust Construct (1878 JP)</a>, <a href="https://www.smartkarma.com/entities/money-forward-inc" target="_blank" data-smartkarma-citation="entities:25919:1" rel="noopener">Money Forward (3994 JP)</a>, <a href="https://www.smartkarma.com/entities/shimizu-corp" target="_blank" data-smartkarma-citation="entities:8530:1" rel="noopener">Shimizu Corp (1803 JP)</a>, <a href="https://www.smartkarma.com/entities/seiko-epson-corp" target="_blank" data-smartkarma-citation="entities:16793:1" rel="noopener">Seiko Epson (6724 JP)</a> and <a href="https://www.smartkarma.com/entities/giftee-inc" target="_blank" data-smartkarma-citation="entities:28280:1" rel="noopener">giftee Inc (4449 JP)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/kirin-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:16977:1" rel="noopener">Kirin Holdings (2503 JP)</a>, <a href="https://www.smartkarma.com/entities/base-inc" target="_blank" data-smartkarma-citation="entities:28353:1" rel="noopener">BASE Inc (4477 JP)</a>, <a href="https://www.smartkarma.com/entities/cyberagent-inc" target="_blank" data-smartkarma-citation="entities:8197:1" rel="noopener">CyberAgent Inc (4751 JP)</a>, <a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a> and <a href="https://www.smartkarma.com/entities/industrial-infrastructure" target="_blank" data-smartkarma-citation="entities:3822:1" rel="noopener">Industrial &amp; Infrastructure Fund Investment (3249 JP)</a>. Shorts increased in the Utilities sector while decreasing in the Consumer Staples sector.</p></div><div><p>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a>, <a href="https://www.smartkarma.com/entities/oci-co-ltd" target="_blank" data-smartkarma-citation="entities:1904:1" rel="noopener">Oci Co Ltd (010060 KS)</a>, <a href="https://www.smartkarma.com/entities/amorepacific-corp" target="_blank" data-smartkarma-citation="entities:20854:1" rel="noopener">Amorepacific Corp (090430 KS)</a>, <a href="https://www.smartkarma.com/entities/kumho-petro-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:2014:1" rel="noopener">Kumho Petro Chemical (011780 KS)</a> and <a href="https://www.smartkarma.com/entities/lg-display-co-ltd" target="_blank" data-smartkarma-citation="entities:7145:1" rel="noopener">LG Display (034220 KS)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao Corp (035720 KS)</a>, <a href="https://www.smartkarma.com/entities/doosan-heavy-industries-construction" target="_blank" data-smartkarma-citation="entities:7389:1" rel="noopener">Doosan Heavy Industries &amp; Construction (034020 KS)</a>, <a href="https://www.smartkarma.com/entities/hyundai-rotem-company" target="_blank" data-smartkarma-citation="entities:1554:1" rel="noopener">Hyundai Rotem Company (064350 KS)</a> and <a href="https://www.smartkarma.com/entities/lg-household-health-care" target="_blank" data-smartkarma-citation="entities:6501:1" rel="noopener">LG Household &amp; Health Care (051900 KS)</a>. </p></div><div><p>In Taiwan, shorts increased on <a href="https://www.smartkarma.com/entities/innolux-corp" target="_blank" data-smartkarma-citation="entities:4509:1" rel="noopener">Innolux Corp (3481 TT)</a>, <a href="https://www.smartkarma.com/entities/asustek-computer-inc" target="_blank" data-smartkarma-citation="entities:13002:1" rel="noopener">Asustek Computer (2357 TT)</a>, <a href="https://www.smartkarma.com/entities/delta-electronics-inc" target="_blank" data-smartkarma-citation="entities:12688:1" rel="noopener">Delta Electronics (2308 TT)</a>, <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a> and <a href="https://www.smartkarma.com/entities/asia-cement-corp" target="_blank" data-smartkarma-citation="entities:15350:1" rel="noopener">Asia Cement (1102 TT)</a> while shorts covered on <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a>, <a href="https://www.smartkarma.com/entities/quanta-computer-inc" target="_blank" data-smartkarma-citation="entities:2754:1" rel="noopener">Quanta Computer (2382 TT)</a>, <a href="https://www.smartkarma.com/entities/china-steel-corp" target="_blank" data-smartkarma-citation="entities:962:1" rel="noopener">China Steel (2002 TT)</a>, <a href="https://www.smartkarma.com/entities/winbond-electronics-corp" target="_blank" data-smartkarma-citation="entities:9177:1" rel="noopener">Winbond Electronics (2344 TT)</a> and <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Alibaba Group (9988 HK), Ping An Insurance (H) (2318 HK), Tencent (700 HK), Country Garden Services Holdings (6098 HK) and JD Health (6618 HK) while there was short covering on Meituan (3690 HK), BYD (1211 HK), Xinjiang Goldwind Science &amp; Technology H (2208 HK), Shanghai Fosun Pharmaceutical (Group) (2196 HK) and New Oriental Education &amp; Technology Group (9901 HK). Shorts increased in the Consumer Discretionary, Financials, Real Estate, Communication Services and Industrial sectors.In Japan, stocks increased on Daito Trust Construct (1878 JP), Money Forward (3994 JP), Shimizu Corp (1803 JP), Seiko Epson (6724 JP) and giftee Inc (4449 JP) while there was short covering on Kirin Holdings (2503 JP), BASE Inc (4477 JP), CyberAgent Inc (4751 JP), Renesas Electronics (6723 JP) and Industrial &amp; Infrastructure Fund Investment (3249 JP). Shorts increased in the Utilities sector while decreasing in the Consumer Staples sector.In Korea, shorts increased on LG Electronics (066570 KS), Oci Co Ltd (010060 KS), Amorepacific Corp (090430 KS), Kumho Petro Chemical (011780 KS) and LG Display (034220 KS) while shorts were covered on Samsung Electronics (005930 KS), Kakao Corp (035720 KS), Doosan Heavy Industries &amp; Construction (034020 KS), Hyundai Rotem Company (064350 KS) and LG Household &amp; Health Care (051900 KS). In Taiwan, shorts increased on Innolux Corp (3481 TT), Asustek Computer (2357 TT), Delta Electronics (2308 TT), AU Optronics (2409 TT) and Asia Cement (1102 TT) while shorts covered on United Microelectronics Corp (2303 TT), Quanta Computer (2382 TT), China Steel (2002 TT), Winbond Electronics (2344 TT) and Yageo Corporation (2327 TT). 

Asia Shorts: Alibaba, Tencent, Meituan, BYD, Daito, Kirin, BASE, LGE, OCI, Kakao, LGH&H, Innolux

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<div class="content-highlight">
<p>On 28 May, Korea's National Pension Fund (NPS) announced its new <a href="https://news.mt.co.kr/mtview.php?no=2021052820172973220" target="_blank" rel="noopener">5 year plan</a> to reduce the asset allocation of Korean equities to 14.5% of total assets at the end of 2026, down from the current target of 16.8% of total assets at the end of 2021. NPS now is targeting overseas equity asset allocation targets to increase from 25.1% at the end of 2021 to 35.5% at the end of 2026.</p>
<p>NPS is targeting equity, fixed income and alternative assets to account for 50%, 35%, and 15% of total assets by the end of 2026. NPS has set an annual expected return of 5.1% for its total invested assets from 2021 to 2026.</p>
</div>


On 28 May, Korea's National Pension Fund (NPS) announced its new 5 year plan to reduce the asset allocation of Korean equities to 14.5% of total assets at the end of 2026, down from the current target of 16.8% of total assets at the end of 2021. NPS now is targeting overseas equity asset allocation targets to increase from 25.1% at the end of 2021 to 35.5% at the end of 2026.
NPS is targeting equity, fixed income and alternative assets to account for 50%, 35%, and 15% of total assets by the end of 2026. NPS has set an annual expected return of 5.1% for its total invested assets from 2021 to 2026.


NPS Announces A Reduction in Asset Allocation in Korean Equities to 14.5% of Assets by 2026

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

<p>We know that the Korea National Pension Service (NPS) is the nation's largest institutional investor, responsible for about 7% of the local equity market. But we often overlook the fact that it is also one of the largest institutional investors in the global coal industry.</p><p>According to the joint report by several environmental organizations, including Urgewald and Reclaim France, the NPS is, in fact, the world's 11th-largest investor in the coal industry. The NPS currently invests ₩12.7T in total on the coal-related bonds and equity, of which ₩4T are invested in equity.</p><p>There is news that the NPS will introduce a negative screening on the coal investment as early as the second half of this year.</p><p>The upcoming Fund Management Committee meeting, chaired by the Minister of Health and Welfare of South Korea, is scheduled for April 30. It is the highest-level investment decision-making body within the NPS. The negative screening is officially one of the proposals to be discussed in the April 30 meeting.</p><p style="text-align: center;"><strong>The Korea NPS governance structure</strong></p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/203/038/original/1.png?1619531424" class="editor-image img-responsive" data-smartkarma-image-id="203038"></figure></section><div class="content-caption">(Courtesy Korea NPS)</div><p>The chances are pretty high, given the current political mood under the left-winged administration. Coal will be a starter, likely followed by tobacco and mass destruction weapons soon.</p>

We know that the Korea National Pension Service (NPS) is the nation's largest institutional investor, responsible for about 7% of the local equity market. But we often overlook the fact that it is also one of the largest institutional investors in the global coal industry.According to the joint report by several environmental organizations, including Urgewald and Reclaim France, the NPS is, in fact, the world's 11th-largest investor in the coal industry. The NPS currently invests ₩12.7T in total on the coal-related bonds and equity, of which ₩4T are invested in equity.There is news that the NPS will introduce a negative screening on the coal investment as early as the second half of this year.The upcoming Fund Management Committee meeting, chaired by the Minister of Health and Welfare of South Korea, is scheduled for April 30. It is the highest-level investment decision-making body within the NPS. The negative screening is officially one of the proposals to be discussed in the April 30 meeting.The Korea NPS governance structure(Courtesy Korea NPS)The chances are pretty high, given the current political mood under the left-winged administration. Coal will be a starter, likely followed by tobacco and mass destruction weapons soon.

Shorting Alert Amid Korea NPS Negative Screening on Coal: KEPCO, GS, OCI, Kumho P, LG Int, & POSCO

<p>Kumho PetroC AGM ended with Park Chul-wan's defeat last Friday. It was a well-expected result. What was surprising was a widened price gap between 1P and ord.</p><p>Ord gained 5.99%, whereas 1P stayed at +1.65%, resulting in a nearly 2σ move in favor of ord.</p><p>1P discount is now pretty much back to the 2-yr mean.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"% of sigma"}'>% of sigma</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Today"}'>Today</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.3336713645431289}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-26]C[7]">-33.37%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-1"}'>T-1</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.451024967930148}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-26]C[7]">145.10%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-2"}'>T-2</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.383964419410094}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-26]C[7]">138.40%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-3"}'>T-3</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.9156023106109108}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-26]C[7]">91.56%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-4"}'>T-4</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.28025357401397377}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-26]C[7]">-28.03%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"T-5"}'>T-5</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-1.0565298444071825}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-26]C[7]">-105.65%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Metric"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Metric</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Price ratio"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Price ratio</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Discount"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Discount</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Δ"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Δ</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Today"}'>Today</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3857740585774059}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=Data!R[-35]C[2]">0.38577</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6142259414225941}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[-35]C[0]">61.42%</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D mean"}'>120D mean</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3891208548753185}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=average(Data!R2C4:R100C4)">0.38912</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6108791451246814}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=average(Data!R2C3:R100C3)">61.09%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.008600917313940934}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">-0.86%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D median"}'>120D median</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.38634146341463416}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MEDIAN(Data!R2C4:R100C4)">0.38634</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6136585365853658}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MEDIAN(Data!R2C3:R100C3)">61.37%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.0014686615105024932}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">-0.15%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D high"}'>120D high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5102040816326531}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MAX(Data!R2C4:R100C4)">0.51020</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4897959183673469}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MIN(Data!R2C3:R100C3)">48.98%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.24388284518828449}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">-24.39%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"120D low"}'>120D low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.35174418604651164}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MIN(Data!R2C4:R100C4)">0.35174</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6482558139534884}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MAX(Data!R2C3:R100C3)">64.83%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09674608388948443}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">9.67%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y mean"}'>1Y mean</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3910047941933641}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=average(Data!R2C4:R248C4)">0.39100</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6089952058066355}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=average(Data!R2C3:R248C3)">60.90%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.013377676421459561}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">-1.34%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y median"}'>1Y median</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.38873239436619716}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MEDIAN(Data!R2C4:R248C4)">0.38873</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6112676056338028}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MEDIAN(Data!R2C3:R248C3)">61.13%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.007610211630586287}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">-0.76%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y high"}'>1Y high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5102040816326531}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MAX(Data!R2C4:R248C4)">0.51020</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4897959183673469}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MIN(Data!R2C3:R248C3)">48.98%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.24388284518828449}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">-24.39%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Y low"}'>1Y low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.35174418604651164}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MIN(Data!R2C4:R248C4)">0.35174</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6482558139534884}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MAX(Data!R2C3:R248C3)">64.83%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09674608388948443}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">9.67%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y mean"}'>2Y mean</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.40209958122007}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=average(Data!R2C4:R476C4)">0.40210</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5979004187799297}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=average(Data!R2C3:R476C3)">59.79%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.04060069546237386}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">-4.06%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y median"}'>2Y median</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.39854545454545454}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MEDIAN(Data!R2C4:R476C4)">0.39855</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6014545454545455}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MEDIAN(Data!R2C3:R476C3)">60.15%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.032045017255596546}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">-3.20%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y high"}'>2Y high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5102040816326531}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MAX(Data!R2C4:R476C4)">0.51020</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4897959183673469}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MIN(Data!R2C3:R476C3)">48.98%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.24388284518828449}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">-24.39%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"2Y low"}'>2Y low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.35174418604651164}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula="=MIN(Data!R2C4:R476C4)">0.35174</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6482558139534884}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MAX(Data!R2C3:R476C3)">64.83%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09674608388948443}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R37C[-2]-R[0]C[-2])/R[0]C[-2]">9.67%</td>
</tr>
<tr>
<td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td>
<td></td>
</tr>
</tbody>
</table><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/197/790/original/chart+%281%29.png?1616968456" class="editor-image img-responsive" data-smartkarma-image-id="197790"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/197/791/original/chart.png?1616968465" class="editor-image img-responsive" data-smartkarma-image-id="197791"></figure></section>

Kumho PetroC AGM ended with Park Chul-wan's defeat last Friday. It was a well-expected result. What was surprising was a widened price gap between 1P and ord.Ord gained 5.99%, whereas 1P stayed at +1.65%, resulting in a nearly 2σ move in favor of ord.1P discount is now pretty much back to the 2-yr mean.





% of sigma

Today
-33.37%


T-1
145.10%


T-2
138.40%


T-3
91.56%


T-4
-28.03%


T-5
-105.65%

Source: KRX










Metric
Price ratio
Discount
Δ


Today
0.38577
61.42%
-


120D mean
0.38912
61.09%
-0.86%


120D median
0.38634
61.37%
-0.15%


120D high
0.51020
48.98%
-24.39%


120D low
0.35174
64.83%
9.67%


1Y mean
0.39100
60.90%
-1.34%


1Y median
0.38873
61.13%
-0.76%


1Y high
0.51020
48.98%
-24.39%


1Y low
0.35174
64.83%
9.67%


2Y mean
0.40210
59.79%
-4.06%


2Y median
0.39855
60.15%
-3.20%


2Y high
0.51020
48.98%
-24.39%


2Y low
0.35174
64.83%
9.67%


Source: KRX





Kumho PetroC Pref Arb Trade: Buy 1P Short Ord

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p>As Kumho Petrochemical faces a showdown on Friday with corporate governance in focus, we examine merits of the proposals made by both Park Chul Whan and the company management. While we disagree with Park Chul Whan’s harsh criticism of operational performance over the last decade, corporate governance could definitely be improved with some changes.</p>

As Kumho Petrochemical faces a showdown on Friday with corporate governance in focus, we examine merits of the proposals made by both Park Chul Whan and the company management. While we disagree with Park Chul Whan’s harsh criticism of operational performance over the last decade, corporate governance could definitely be improved with some changes.

Kumho Petrochem – The Asian Governance Drive Continues

South Korea

Kumho Petrochemical Co., Ltd. manufactures synthetic rubbers, synthetic resins, and rubber chemicals.  The Company's products include styrene butadiene, acrylonitrile butadiene, polystyrene, expandable polystyrene, and antioxidant.  Kumho Petrochemical provides construction, transportation, and financial services through its subsidiaries.

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Kumho Petro Chemical (011780 KS)

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Kumho PetroC Pref Arb Trade: Buy 1P Short Ord

This post details the current dividend yield difference between Kumho PetroC's 1P and ord and argues why 1P is still in an undervalued territory...

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Kumho Petrochem – The Asian Governance Drive Continues

As Kumho Petrochemical faces a showdown on Friday with corporate governance in focus, we examine merits of the proposals made by both Park Chul...

Mio Kato

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