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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Event-Driven

<p>LG Chem's minimum yr-end dividend is ₩10,000 for ord. That is, we have ₩10,500 for 1P, which delivers a 2.64% div yield.</p><ul><li>December 29, Tuesday, is the ex-rights.</li></ul><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Yield"}'>Yield</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2017}'>2017</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2018}'>2018</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2019}'>2019</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"2020E"}' data-sheets-numberformat='[null,2,"#,##0",1]'>2020E</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Common - DPS"}'>Common - DPS</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩6,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩6,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩2,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩10,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Price"}'>- Price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":405000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula='=index(googlefinance(Table!R5C2, "price", date(2017,12,27)), 2,2)'>₩405,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":347000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula='=index(googlefinance(Table!R5C2, "price", date(2018,12,27)), 2,2)'>₩347,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":317500}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula='=index(googlefinance(Table!R5C2, "price", date(2019,12,29)), 2,2)'>₩317,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":800000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[20]C[-3]">₩800,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Common - dividend yield"}'>Common - dividend yield</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.014814814814814815}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-2]C[0]/R[-1]C[0]">1.48%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.01729106628242075}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-2]C[0]/R[-1]C[0]">1.73%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.006299212598425197}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-2]C[0]/R[-1]C[0]">0.63%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0125}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-2]C[0]/R[-1]C[0]">1.25%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1P - DPS"}'>1P - DPS</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6050}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-3]C[0]+(Table!R26C2*0.01)">₩6,050</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6050}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-3]C[0]+(Table!R26C2*0.01)">₩6,050</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2050}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-3]C[0]+(Table!R26C2*0.01)">₩2,050</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10050}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-3]C[0]+(Table!R26C2*0.01)">₩10,050</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Price"}'>- Price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":249000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula='=index(googlefinance(Table!R9C2, "price", date(2017,12,27)), 2,2)'>₩249,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":195500}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula='=index(googlefinance(Table!R9C2, "price", date(2018,12,27)), 2,2)'>₩195,500</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":173000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula='=index(googlefinance(Table!R9C2, "price", date(2019,12,29)), 2,2)'>₩173,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":377000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[19]C[-3]">₩377,000</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1P - dividend yield"}'>1P - dividend yield</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.024297188755020082}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-2]C[0]/R[-1]C[0]">2.43%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.030946291560102302}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-2]C[0]/R[-1]C[0]">3.09%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.011849710982658959}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-2]C[0]/R[-1]C[0]">1.18%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.026657824933687003}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-2]C[0]/R[-1]C[0]">2.67%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Difference"}'>- Difference</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"0.94%p"}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula='=left(((R[-1]C[0]-R[-4]C[0])*100), 4)&amp;"%"&amp;"p"'>0.94%p</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"1.36%p"}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula='=left(((R[-1]C[0]-R[-4]C[0])*100), 4)&amp;"%"&amp;"p"'>1.36%p</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"0.55%p"}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula='=left(((R[-1]C[0]-R[-4]C[0])*100), 4)&amp;"%"&amp;"p"'>0.55%p</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"1.41%p"}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula='=left(((R[-1]C[0]-R[-4]C[0])*100), 4)&amp;"%"&amp;"p"'>1.41%p</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Difference/1P div yield"}' data-sheets-numberformat='[null,2,"#,##0",1]'>- Difference/1P div yield</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.39026629935720847}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[-2]C[0]-R[-5]C[0])/R[-2]C[0]">39.03%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.44125562674161045}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[-2]C[0]-R[-5]C[0])/R[-2]C[0]">44.13%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.46840791242558094}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[-2]C[0]-R[-5]C[0])/R[-2]C[0]">46.84%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5310945273631841}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[-2]C[0]-R[-5]C[0])/R[-2]C[0]">53.11%</td>
</tr>
<tr><td colspan="5" rowspan="1" data-sheets-value='{"1":2,"2":"Source: SEIBro &amp; FnGuide"}' data-sheets-numberformat='[null,2,"#,##0",1]'>Source: SEIBro &amp; FnGuide</td></tr>
</tbody>
</table><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Dividend condition (₩B)"}'>Dividend condition (₩B)</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Type"}'>Type</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Cash"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>Cash</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Frequency"}'>Frequency</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Annually"}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>Annually</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Record date"}'>Record date</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"December 30"}'>December 30</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Ex-rights"}'>- Ex-rights</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"December 29 (Tuesday)"}'>December 29 (Tuesday)</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

LG Chem's minimum yr-end dividend is ₩10,000 for ord. That is, we have ₩10,500 for 1P, which delivers a 2.64% div yield.December 29, Tuesday, is the ex-rights.









Yield
2017
2018
2019
2020E


Common - DPS
₩6,000
₩6,000
₩2,000
₩10,000


- Price
₩405,000
₩347,000
₩317,500
₩800,000


Common - dividend yield
1.48%
1.73%
0.63%
1.25%


1P - DPS
₩6,050
₩6,050
₩2,050
₩10,050


- Price
₩249,000
₩195,500
₩173,000
₩377,000


1P - dividend yield
2.43%
3.09%
1.18%
2.67%


- Difference
0.94%p
1.36%p
0.55%p
1.41%p


- Difference/1P div yield
39.03%
44.13%
46.84%
53.11%

Source: SEIBro &amp; FnGuide







Dividend condition (₩B)

Type
Cash


Frequency
Annually


Record date
December 30


- Ex-rights
December 29 (Tuesday)

Source: DART



Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<p>Following last week's announcement of a demerger/spinoff, <a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a> re-evaluation remains unresolved as its underperformance against its listed holdings continues, leading to a decade-low implied stub value - net of all key listed holdings.</p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/176/021/original/image_95567518231606891715234.png?1606891715" class="editor-image img-responsive" data-smartkarma-image-id="176021"></figure>
<p>The creation of this new holding company as a means to unlocking value via improved efficiencies and affiliate listings, has largely been overshadowed by the EV battery craze, with 33.3%-held  <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> up 165% YTD.</p>
<p>More below the fold.</p>

Following last week's announcement of a demerger/spinoff, LG Corp (003550 KS) re-evaluation remains unresolved as its underperformance against its listed holdings continues, leading to a decade-low implied stub value - net of all key listed holdings.

The creation of this new holding company as a means to unlocking value via improved efficiencies and affiliate listings, has largely been overshadowed by the EV battery craze, with 33.3%-held  LG Chem Ltd (051910 KS) up 165% YTD.
More below the fold.

2021 High Conviction: LG Corp's Decade-Low Stub

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/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 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/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> and <a href="https://www.smartkarma.com/entities/haier-electronics-group-co" target="_blank" data-smartkarma-citation="entities:4877:1" rel="noopener">Haier Electronics Group Co (1169 HK)</a> while there was short covering 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/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> and <a href="https://www.smartkarma.com/entities/want-want-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:355:1" rel="noopener">Want Want (151 HK)</a>. Shorts increased in Real Estate, Health Care, Communication Services and Financial stocks, and decreased on Information Technology and Consumer Discretionary names.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/showa-denko-k-k" target="_blank" data-smartkarma-citation="entities:1496:1" rel="noopener">Showa Denko K.K. (4004 JP)</a>, <a href="https://www.smartkarma.com/entities/pigeon-corp" target="_blank" data-smartkarma-citation="entities:3294:1" rel="noopener">Pigeon Corp (7956 JP)</a>, <a href="https://www.smartkarma.com/entities/change-inc" target="_blank" data-smartkarma-citation="entities:27414:1" rel="noopener">Change Inc (3962 JP)</a> and <a href="https://www.smartkarma.com/entities/nippon-building-fund-inc" target="_blank" data-smartkarma-citation="entities:1900:1" rel="noopener">Nippon Building Fund (8951 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>, <a href="https://www.smartkarma.com/entities/advantest-corp" target="_blank" data-smartkarma-citation="entities:18107:1" rel="noopener">Advantest Corp (6857 JP)</a>, <a href="https://www.smartkarma.com/entities/tdk-corp" target="_blank" data-smartkarma-citation="entities:18847:1" rel="noopener">TDK Corp (6762 JP)</a> and <a href="https://www.smartkarma.com/entities/aozora-bank-ltd" target="_blank" data-smartkarma-citation="entities:6483:1" rel="noopener">Aozora Bank Ltd (8304 JP)</a>. Sectorally, shorts increased on Materials, Industrials, Real Estate and Consumer Discretionary names.</p></div><div><p>In Korea, the biggest increase in shorts were seen on <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> and <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a> while shorts were covered on <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/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a>, <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> and <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>. </p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/largan-precision-co-ltd" target="_blank" data-smartkarma-citation="entities:9126:1" rel="noopener">Largan Precision (3008 TT)</a>, <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a>, <a href="https://www.smartkarma.com/entities/pan-jit-international-inc" target="_blank" data-smartkarma-citation="entities:12501:1" rel="noopener">Pan Jit International (2481 TT)</a> and <a href="https://www.smartkarma.com/entities/elite-semiconductor-memory" target="_blank" data-smartkarma-citation="entities:9373:1" rel="noopener">Elite Semiconductor Memory (3006 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/macronix-international" target="_blank" data-smartkarma-citation="entities:3247:1" rel="noopener">Macronix International (2337 TT)</a>, <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a> and <a href="https://www.smartkarma.com/entities/mediatek-inc" target="_blank" data-smartkarma-citation="entities:772:1" rel="noopener">Mediatek Inc (2454 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 Tencent Holdings (700 HK), Ping An Insurance (H) (2318 HK), Wuxi Biologics (2269 HK) and Haier Electronics Group Co (1169 HK) while there was short covering on Alibaba Group (9988 HK), Meituan (3690 HK), Xiaomi Corp (1810 HK) and Want Want (151 HK). Shorts increased in Real Estate, Health Care, Communication Services and Financial stocks, and decreased on Information Technology and Consumer Discretionary names.In Japan, stocks that saw the most shorts were Showa Denko K.K. (4004 JP), Pigeon Corp (7956 JP), Change Inc (3962 JP) and Nippon Building Fund (8951 JP) while shorts decreased on Fast Retailing (9983 JP), Advantest Corp (6857 JP), TDK Corp (6762 JP) and Aozora Bank Ltd (8304 JP). Sectorally, shorts increased on Materials, Industrials, Real Estate and Consumer Discretionary names.In Korea, the biggest increase in shorts were seen on LG Chem Ltd (051910 KS) and Doosan Infracore (042670 KS) while shorts were covered on Amorepacific Corp (090430 KS), Celltrion Inc (068270 KS), LG Display (034220 KS) and Samsung Electronics (005930 KS). Stocks in Taiwan that saw the highest increase in shorts were Largan Precision (3008 TT), Pegatron Corp (4938 TT), Pan Jit International (2481 TT) and Elite Semiconductor Memory (3006 TT) while shorts were covered on TSMC (2330 TT), Macronix International (2337 TT), Yageo Corporation (2327 TT) and Mediatek Inc (2454 TT). 

Asia Short Interest Weekly: Tencent, Want Want, Showa Denko, NBF, LG Chem, AmoreCorp, Pegatron

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<p><span data-hook="tip" data-type="arken" data-lang="en">On 26 November, <a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a> officially announced the formation of another Holdco (tentatively named 'LG NewCo') and the split of 4 companies (out of 13 affiliates) from LG Corp including <a href="https://www.smartkarma.com/entities/lg-international-corp" target="_blank" data-smartkarma-citation="entities:3281:1" rel="noopener">LG International (001120 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-hausys-ltd" target="_blank" data-smartkarma-citation="entities:11613:1" rel="noopener">LG Hausys Ltd (108670 KS)</a>, <a href="https://www.smartkarma.com/entities/silicon-works-co-ltd" target="_blank" data-smartkarma-citation="entities:20670:1" rel="noopener">Silicon Works (108320 KS)</a>, and LG MMA. In addition, Pantos will become an affiliate of LG International. The LG NewCo will be operated separately from LG Corp and the former company will have its own separate BOD and senior professional managers who will oversee the company. </span>The new BOD will be headed up by Koo Bon Joon, the uncle of the current LG Chairman Koo Kwang Mo. </p><p>Overall, we believe this creation of the LG NewCo will have a positive impact on <a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a>. However, the overall impact is likely to be much bigger for LG NewCo than LG Corp. Therefore, once the two stocks start to trade again on May 27th, 2021, there is a good chance that LG NewCo stock price rises higher than LG Corp.</p><p>In this insight, we have also provided an updated SoTP valuation of LG Corp and a SoTP valuation of LG NewCo.</p>

On 26 November, LG Corp (003550 KS) officially announced the formation of another Holdco (tentatively named 'LG NewCo') and the split of 4 companies (out of 13 affiliates) from LG Corp including LG International (001120 KS), LG Hausys Ltd (108670 KS), Silicon Works (108320 KS), and LG MMA. In addition, Pantos will become an affiliate of LG International. The LG NewCo will be operated separately from LG Corp and the former company will have its own separate BOD and senior professional managers who will oversee the company. The new BOD will be headed up by Koo Bon Joon, the uncle of the current LG Chairman Koo Kwang Mo. Overall, we believe this creation of the LG NewCo will have a positive impact on LG Corp (003550 KS). However, the overall impact is likely to be much bigger for LG NewCo than LG Corp. Therefore, once the two stocks start to trade again on May 27th, 2021, there is a good chance that LG NewCo stock price rises higher than LG Corp.In this insight, we have also provided an updated SoTP valuation of LG Corp and a SoTP valuation of LG NewCo.

LG Group Announces the Formation of LG NewCo & Split of 4 Companies from LG Corp

<p>LG Chem 1P is now at a -2.2σ on a 20D MA, the widest since late September.</p><p>The pref discount sits at 52.3%, up 5% (2.5%p) from the 120D mean and 10.6% higher than the 2-yr mean.</p><table class="table table-striped">
<colgroup>
<col width="300">
<col width="300">
</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":-2.1763718909748957}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]">-217.64%</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":-0.671940190709215}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]">-67.19%</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":-1.0667462830571939}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]">-106.67%</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":-0.574155568371956}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]">-57.42%</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":0.03722405013214451}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]">3.72%</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":0.024132981985171883}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=Data!R[0]C[6]">2.41%</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="300">
<col width="300">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Pref discount"}'>Pref discount</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Today"}'>Today</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5225281602002503}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=RP!R[445]C[5]">52.25%</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":0.49782320844450034}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=average(RP!R396C7:R494C7)">49.78%</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":0.5014577259475219}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MEDIAN(RP!R396C7:R494C7)">50.15%</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":0.5333333333333333}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MAX(RP!R396C7:R494C7)">53.33%</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":0.4236111111111111}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MIN(RP!R396C7:R494C7)">42.36%</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":0.49881580622124455}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=average(RP!R248C7:R494C7)">49.88%</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":0.49949135300101727}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MEDIAN(RP!R248C7:R494C7)">49.95%</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":0.5746268656716418}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MAX(RP!R248C7:R494C7)">57.46%</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":0.4236111111111111}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MIN(RP!R248C7:R494C7)">42.36%</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":0.47259331641753594}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=average(RP!R2C7:R494C7)">47.26%</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":0.4592696629213483}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MEDIAN(RP!R2C7:R494C7)">45.93%</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":0.5746268656716418}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MAX(RP!R2C7:R494C7)">57.46%</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":0.4158273381294964}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=MIN(RP!R2C7:R494C7)">41.58%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/173/796/original/chart.png?1606252618" class="editor-image img-responsive" data-smartkarma-image-id="173796"></figure></section>

LG Chem 1P is now at a -2.2σ on a 20D MA, the widest since late September.The pref discount sits at 52.3%, up 5% (2.5%p) from the 120D mean and 10.6% higher than the 2-yr mean.





% of sigma

Today
-217.64%


T-1
-67.19%


T-2
-106.67%


T-3
-57.42%


T-4
3.72%


T-5
2.41%

Source: KRX







Pref discount

Today
52.25%


120D mean
49.78%


120D median
50.15%


120D high
53.33%


120D low
42.36%


1Y mean
49.88%


1Y median
49.95%


1Y high
57.46%


1Y low
42.36%


2Y mean
47.26%


2Y median
45.93%


2Y high
57.46%


2Y low
41.58%

Source: KRX



Tesla Rally Pushed LG Chem 1P Diversion to an Extreme: Trade σ Reversion & 1P Div

South Korea

LG Chem Ltd. is a chemical manufacturer.  The Company's products include petrochemicals, plastic resins, and engineering plastics.  LG Chem also produces industrial and electronic materials.

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LG Chem Ltd (051910 KS)

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