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>The LG Corp split ratio is 0.9115879 to 0.0884121 for LG Corp (surviving entity) and LX Holdings (new entity).</p><p>Per-share allocation is 0.91 LG Corp share and 44 LX Holdings shares (after stock split).</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"(₩B)"}'>(₩B)</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Before"}'>Before</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"LG Corp"}'>LG Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"LX Holdings"}'>LX Holdings</td>
</tr>
<tr>
<td>Type</td>
<td style="text-align: right;">-</td>
<td style="text-align: right;">Surviving</td>
<td style="text-align: right;">New</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Assets"}'>Assets</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10692.920976}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>10,692.9</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9779.80846}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>9,779.8</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":913.323389}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>913.3</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current assets"}'>Current assets</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1883.552589}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>1,883.6</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1711.157771}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>1,711.2</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":172.394818}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>172.4</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Non-current assets"}'>Non-current assets</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8809.368387}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>8,809.4</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8068.650689}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>8,068.7</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":740.928571}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>740.9</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Liabilities"}'>Liabilities</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":393.41606}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>393.4</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":390.904772}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>390.9</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.511288}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>2.5</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current liabilities"}'>Current liabilities</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":296.800256}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>296.8</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":296.71002}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>296.7</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.090236}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>0.1</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Non-current liabilities"}'>Non-current liabilities</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":96.615804}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>96.6</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":94.194752}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>94.2</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.421052}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>2.4</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Equity"}'>Equity</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10299.504916}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>10,299.5</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":9388.903688}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>9,388.9</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":910.812101}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>910.8</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital"}'>Capital</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":879.35904}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>879.4</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":801.613065}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>801.6</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":77.745975}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>77.7</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Capital surplus"}'>Capital surplus</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2409.002192}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>2,409.0</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1575.936066}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>1,575.9</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":833.066126}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>833.1</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Retained earnings"}'>Retained earnings</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6975.460856}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>6,975.5</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6975.460856}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>6,975.5</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>-</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Split ratio"}'>Split ratio</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>-</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.9115879}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}'>0.9115879</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0884121}' data-sheets-numberformat='{"1":2,"2":"#,##0.0000000","3":1}'>0.0884121</td>
</tr>
<tr>
<td>SO</td>
<td style="text-align: right;"></td>
<td style="text-align: right;">160,322,613 shares</td>
<td style="text-align: right;">77,745,975 shares</td>
</tr>
<tr>
<td>Per-share allocation</td>
<td style="text-align: right;">-</td>
<td style="text-align: right;">0.91 share</td>
<td style="text-align: right;">44 shares</td>
</tr>
<tr><td colspan="4" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>The split got shareholder approval on March 26.</p><p>Now, the stock trade suspension kicks in on April 29 and runs until May 26.</p><p>The following day, May 27, is the re-listing day for both LG Corp and LX Holdings.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Schedule"}'>Schedule</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shareholder meeting"}'>Shareholder meeting</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44281}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>3/26/21</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Record date"}'>Record date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44316}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>4/30/21</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Trade suspension begins"}'>Trade suspension begins</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44315}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>4/29/21</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Trade suspensino ends"}'>Trade suspensino ends</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44342}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>5/26/21</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Relistnig"}'>Re-listing</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44343}' data-sheets-numberformat='{"1":5,"2":"m\"/\"d\"/\"yy"}'>5/27/21</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

The LG Corp split ratio is 0.9115879 to 0.0884121 for LG Corp (surviving entity) and LX Holdings (new entity).Per-share allocation is 0.91 LG Corp share and 44 LX Holdings shares (after stock split).








(₩B)
Before
LG Corp
LX Holdings


Type
-
Surviving
New


Assets
10,692.9
9,779.8
913.3


Current assets
1,883.6
1,711.2
172.4


Non-current assets
8,809.4
8,068.7
740.9


Liabilities
393.4
390.9
2.5


Current liabilities
296.8
296.7
0.1


Non-current liabilities
96.6
94.2
2.4


Equity
10,299.5
9,388.9
910.8


Capital
879.4
801.6
77.7


Capital surplus
2,409.0
1,575.9
833.1


Retained earnings
6,975.5
6,975.5
-


Split ratio
-
0.9115879
0.0884121


SO

160,322,613 shares
77,745,975 shares


Per-share allocation
-
0.91 share
44 shares

Source: DART

The split got shareholder approval on March 26.Now, the stock trade suspension kicks in on April 29 and runs until May 26.The following day, May 27, is the re-listing day for both LG Corp and LX Holdings.





Schedule

Shareholder meeting
3/26/21


Record date
4/30/21


Trade suspension begins
4/29/21


Trade suspensino ends
5/26/21


Re-listing
5/27/21

Source: DART



LG Corp Split: Schedule, Financials, Base Price MC, Subs Stake Value, & KOSPI 200 Inclusion

Below is the first batch of the likely candidates based on the November 1~April 5 average market caps.A total of 195 names make the list.
Select candidates for each sector in order by avg daily MC (the cumulative cutoff at the 85th percentile)
Include the first company that crosses the 85th percentile mark
Exclude those whose avg DTV ranking is below the 85th percentile or (only new entrants) whose avg daily MC ranking is above 110%
If not 200, then re-select current constituents whose avg daily MC ranking is within 110%













Name
Ticker
Sector
KOSPI 200
MC C
MC R
DTV C
MC (₩B)


Samsung Electronics Co Ltd
005930
IT
1
70.08%
11.11%
1.56%
464,170.5


SK Hynix Inc
000660
IT
2
83.45%
22.22%
3.13%
88,604.8


LG Chem Ltd
051910
Mat
4
32.19%
3.57%
0.61%
60,426.4


Naver Corp
035420
Comm
3
31.51%
10.00%
3.57%
54,157.6


Samsung Biologics Co Ltd
207940
HC
21
32.83%
5.56%
9.09%
51,686.8


Hyundai Motor Co
005380
CD
6
21.73%
2.78%
1.31%
46,007.8


Samsung SDI Co Ltd
006400
IT
5
90.12%
33.33%
4.69%
44,129.1


Celltrion, Inc.
068270
HC
7
58.34%
11.11%
1.82%
40,166.4


Kakao Corp
035720
Comm
8
53.67%
20.00%
7.14%
38,080.8


Kia Motors Corporation
000270
CD
10
35.70%
5.56%
0.65%
29,596.9


HYUNDAI MOBIS CO., LTD.
012330
CD
11
48.57%
8.33%
3.27%
27,238.1


LG Household &amp; Healthcare Ltd
051900
CS
16
23.43%
3.85%
4.17%
24,522.4


Samsung C&amp;T Corp
028260
Ind
18
11.30%
2.04%
4.76%
24,027.4


POSCO
005490
Mat
9
44.82%
7.14%
1.22%
23,716.1


LG Electronics Inc.
066570
CD
13
58.63%
11.11%
1.96%
21,311.2


SK Innovation Co Ltd
096770
Energy
19
58.00%
25.00%
11.11%
20,679.3


NCSoft Corp
036570
Comm
14
65.28%
30.00%
14.29%
19,949.1


SK Telecom Co Ltd
017670
Comm
17
76.86%
40.00%
17.86%
19,902.7


KB Financial Group Inc
105560
Fin &amp; RE
12
12.91%
5.56%
1.54%
19,288.5


SK Holdings Co Ltd
034730
Ind
23
19.95%
4.08%
1.79%
18,380.8


Shinhan Financial Group Co., Ltd.
055550
Fin &amp; RE
15
24.52%
11.11%
3.08%
17,358.7


LG Corp
003550
Ind
26
27.20%
6.12%
11.90%
15,423.2


Korea Electric Power Corporation
015760
Util
28
69.74%
50.00%
7.14%
15,144.8


Samsung Life Insurance co., Ltd
032830
Fin &amp; RE
30
34.60%
16.67%
7.69%
15,068.4


Samsung SDS Co Ltd
018260
IT
31
92.31%
44.44%
18.75%
14,560.3


Samsung Electro-Mechanics Co., Ltd.
009150
IT
22
94.35%
55.56%
6.25%
13,493.2


Amorepacific Corp
090430
CS
27
35.47%
7.69%
2.78%
12,611.2


SK Biopharmaceuticals Co Ltd
326030
HC
88
65.71%
16.67%
7.27%
11,611.6


KT&amp;G Corp
033780
CS
24
46.29%
11.54%
5.56%
11,328.1


Hana Financial Group Inc
086790
Fin &amp; RE
20
42.04%
22.22%
6.15%
11,109.1


Netmarble Corp
251270
Comm
25
83.23%
50.00%
39.29%
10,953.3


Lotte Chemical Corp
011170
Mat
40
50.09%
10.71%
4.88%
9,889.1


Hanwha Solutions Corp
009830
Mat
36
55.07%
14.29%
3.66%
9,360.3


Samsung Fire &amp; Marine Insurance Co Ltd
000810
Fin &amp; RE
35
47.94%
27.78%
9.23%
8,826.8


Hanon Systems
018880
CD
39
62.77%
13.89%
6.54%
8,768.3


Korean Air Lines Co Ltd
003490
Ind
32
31.24%
8.16%
5.95%
8,573.2


S Oil Corp
010950
Energy
52
81.58%
50.00%
22.22%
8,407.1


Korea Zinc Inc
010130
Mat
49
59.16%
17.86%
15.24%
7,672.5


Korea Shipbuilding &amp;Offshore Engn Co Ltd
009540
Ind
33
34.83%
10.20%
3.57%
7,630.9


Posco Chemical Co Ltd
003670
Mat
41
63.16%
21.43%
4.27%
7,505.7


Hyundai Glovis Co Ltd
086280
Ind
48
38.22%
12.24%
8.93%
7,212.1


LG Display Co Ltd
034220
IT
37
95.43%
66.67%
9.38%
7,123.8


Woori Financial Group Inc
316140
Fin &amp; RE
38
52.68%
33.33%
16.92%
7,082.5


Big Hit Entertainment Co Ltd
352820
Comm
65
87.26%
60.00%
21.43%
6,929.0


Industrial Bank of Korea
024110
Fin &amp; RE
71
57.07%
38.89%
15.38%
6,567.4


KT Corp
030200
Comm
34
91.05%
70.00%
28.57%
6,520.2


Mirae Asset Daewoo Co Ltd
006800
Fin &amp; RE
51
61.19%
44.44%
23.08%
6,152.8


CJ Cheiljedang Corp
097950
CS
57
52.10%
15.38%
11.11%
6,079.0


Shinpoong Pharmaceutical Co Ltd
019170
HC
59
69.51%
22.22%
3.64%
5,984.0


Kumho Petro Chemical Co Ltd
011780
Mat
42
66.23%
25.00%
1.83%
5,764.3


HMM Co Ltd
011200
Ind
29
40.88%
14.29%
0.60%
5,647.8


Hyundai Steel Co
004020
Mat
43
69.07%
28.57%
6.10%
5,329.4


LG Uplus Corp
032640
Comm
50
94.11%
80.00%
35.71%
5,250.8


Coway Co Ltd
021240
CD
45
65.22%
16.67%
15.69%
5,186.1


Kangwon Land, Inc.
035250
CD
54
67.66%
19.44%
10.46%
5,174.7


Hankook Tire &amp; Technology Co Ltd
161390
CD
47
70.09%
22.22%
16.34%
5,137.1


Doosan Heavy Industries Constrctn Co Ltd
034020
Ind
66
43.21%
16.33%
13.69%
4,972.0


Orion Corp
271560
CS
60
56.81%
19.23%
16.67%
4,931.9


Amorepacific Group
002790
CS
84
61.42%
23.08%
20.83%
4,820.9


E-Mart Inc
139480
CS
46
65.84%
26.92%
6.94%
4,628.0


Korea Investment Holdings Co., Ltd.
071050
Fin &amp; RE
44
64.28%
50.00%
12.31%
4,618.5


Yuhan Corp
000100
HC
56
72.42%
27.78%
21.82%
4,585.7


Hanmi Science Co Ltd
008930
HC
105
75.31%
33.33%
38.18%
4,544.1


Green Cross Corp
006280
HC
86
78.19%
38.89%
10.91%
4,541.7


LG Innotek Co., Ltd.
011070
IT
58
96.10%
77.78%
12.50%
4,460.1


Hyundai Engineering &amp; Construction Co.
000720
Ind
53
45.28%
18.37%
14.88%
4,391.7


SK Chemicals Co Ltd
285130
Mat
81
71.40%
32.14%
5.49%
4,373.1


Hanjin Kal
180640
Ind
130
47.31%
20.41%
47.62%
4,322.3


Hyundai Heavy Industries Holdings Co Ltd
267250
Ind
64
49.33%
22.45%
22.02%
4,293.2


Samsung Heavy Industries Co.,Ltd
010140
Ind
55
51.31%
24.49%
2.98%
4,196.7


HanmiPharm
128940
HC
69
80.78%
44.44%
20.00%
4,076.1


SKC Co Ltd
011790
Mat
63
73.52%
35.71%
10.37%
3,983.3


CJ Logistics Corp
000120
Ind
74
53.12%
26.53%
26.79%
3,853.7


Samsung Card Co Ltd
029780
Fin &amp; RE
137
69.58%
61.11%
47.69%
3,830.2


Lotte Corp
004990
Ind
146
54.80%
28.57%
46.43%
3,569.5


GS Holdings Corp
078930
Energy
87
91.55%
75.00%
33.33%
3,553.4


Samsung Securities Co Ltd
016360
Fin &amp; RE
68
71.94%
66.67%
20.00%
3,527.5


KIWOOM Securities Co., Ltd.
039490
Fin &amp; RE
93
74.24%
72.22%
13.85%
3,439.5


Ssangyong Cement Industry Co Ltd
003410
Mat
147
75.34%
39.29%
17.07%
3,416.4


Doosan Fuel Cell Co Ltd
336260
Ind
113
56.39%
30.61%
11.31%
3,388.2


Doosan Bobcat Inc
241560
Ind
83
57.95%
32.65%
22.62%
3,303.2


Dong Suh Companies Inc
026960
CS
123
68.98%
30.77%
18.06%
3,285.4


Hotel Shilla Co Ltd
008770
CD
61
71.62%
25.00%
5.23%
3,248.8


GS Engineering &amp; Construction Corp
006360
Ind
67
59.46%
34.69%
8.33%
3,208.9


NH Investment &amp; Securities Co Ltd
005940
Fin &amp; RE
89
76.38%
77.78%
36.92%
3,198.3


S1 Corp
012750
Ind
78
60.95%
36.73%
51.79%
3,170.8


Lotte Shopping Co Ltd
023530
CD
110
73.11%
27.78%
13.73%
3,142.2


DB Insurance Co Ltd
005830
Fin &amp; RE
76
78.44%
83.33%
24.62%
3,072.1


Cs Wind Corp
112610
Ind
112
62.39%
38.78%
5.36%
3,068.0


Korea Aerospace Industries Ltd
047810
Ind
62
63.77%
40.82%
9.52%
2,934.3


Korea Gas Corp
036460
Util
118
83.14%
100.00%
14.29%
2,910.8


Mando Corp
204320
CD
72
74.46%
30.56%
5.88%
2,874.0


Daewoo Shipbuilding &amp; Marine Engineering
042660
Ind
104
65.11%
42.86%
31.55%
2,848.2


GS Retail Co Ltd
007070
CS
125
71.59%
34.62%
19.44%
2,730.8


Iljin Materials Co Ltd
020150
IT
92
96.99%
100.00%
17.19%
2,728.8


Pan Ocean Co Ltd
028670
Ind
100
66.36%
44.90%
1.19%
2,666.6


CJ Corp
001040
Ind
102
67.61%
46.94%
39.29%
2,655.6


Fila Holdings Corp
081660
CD
77
75.72%
33.33%
16.99%
2,651.2


MERITZ SECURITIES CO LTD
008560
Fin &amp; RE
99
80.18%
88.89%
29.23%
2,603.8


Samsung Engineering Co Ltd
028050
Ind
79
68.83%
48.98%
17.26%
2,591.3


BGF Retail Co Ltd
282330
CS
101
74.04%
38.46%
29.17%
2,563.9


Shinsegae Inc
004170
CD
80
76.88%
36.11%
7.19%
2,462.7


HiteJinro Co Ltd
000080
CS
115
76.33%
42.31%
9.72%
2,405.3


Hanssem Co Ltd
009240
CD
114
78.01%
38.89%
24.18%
2,398.2


Cheil Worldwide Inc
030000
Comm
94
95.50%
90.00%
57.14%
2,385.8


Hanwha Life Insurance Co Ltd
088350
Fin &amp; RE
126
81.74%
94.44%
10.77%
2,334.8


Daewoong Co., Ltd.
003090
HC
148
82.25%
50.00%
34.55%
2,306.8


Oci Co Ltd
010060
Mat
73
76.56%
42.86%
7.93%
2,295.5


DL E&amp;C Ord Shs
375500
Ind
82
69.90%
51.02%
10.12%
2,272.4


Hansol Chemical Co Ltd
014680
Mat
70
77.75%
46.43%
15.85%
2,236.9


Hanwha Corp
000880
Ind
96
70.93%
53.06%
32.14%
2,195.4


LS Corp.
006260
Ind
120
71.96%
55.10%
25.00%
2,171.2


Daewoo Engineering &amp; Construction Co Ltd
047040
Ind
103
72.98%
57.14%
10.71%
2,171.0


Posco International Corp
047050
Ind
136
73.99%
59.18%
7.74%
2,161.4


Ottogi Corp
007310
CS
154
78.32%
46.15%
38.89%
2,083.9


Hyundai Marine &amp; Fire Insurance Co., Ltd
001450
Fin &amp; RE
98
83.11%
100.00%
27.69%
2,038.9


Hyundai Rotem Co
064350
Ind
108
74.95%
61.22%
17.86%
2,037.1


Chong Kun Dang Pharmaceutical Corp
185750
HC
121
83.54%
55.56%
12.73%
2,030.8


Hyundai Mipo Dockyard Co., Ltd.
010620
Ind
91
75.89%
63.27%
13.10%
1,986.9


BNK Financial Group Inc
138930
Fin &amp; RE
85
84.42%
105.56%
21.54%
1,958.0


Hyundai Wia Corp
011210
CD
109
78.91%
41.67%
9.80%
1,894.7


Doosan Infracore Co Ltd
042670
Ind
90
76.76%
65.31%
2.38%
1,850.5


Hanwha Systems Co Ltd
272210
Ind
142
77.62%
67.35%
6.55%
1,838.4


Korea Petro Chemical Ind Co Ltd
006650
Mat
133
78.73%
50.00%
14.63%
1,830.6


Green Cross Holdings
005250
HC
141
84.70%
61.11%
29.09%
1,828.6


Hyundai Department Store Co Ltd
069960
CD
107
79.77%
44.44%
9.15%
1,822.3


LS Electric Co Ltd
010120
Ind
127
78.47%
69.39%
38.10%
1,804.2


Nongshim Co Ltd
004370
CS
135
80.01%
50.00%
27.78%
1,765.2


Hanwha Aerospace Co Ltd
012450
Ind
95
79.29%
71.43%
18.45%
1,743.7


Hyundai Elevator Co Ltd
017800
Ind
97
80.11%
73.47%
27.98%
1,735.5


KCC Corp
002380
Mat
116
79.65%
53.57%
23.78%
1,731.4


HDC Hyundai Development Co
294870
Ind
106
80.92%
75.51%
23.81%
1,721.2


Hyosung Corp
004800
Ind
143
81.72%
77.55%
34.52%
1,711.7


F&amp;F Co., Ltd
007700
CD
140
80.55%
47.22%
18.95%
1,667.5


Bukwang Pharm Co Ltd
003000
HC
111
85.73%
66.67%
5.45%
1,616.9


Hanall Biopharma Co Ltd
009420
HC
129
86.75%
72.22%
43.64%
1,609.5


Daewoong Pharmaceutical Co., Ltd.
069620
HC
149
87.76%
77.78%
23.64%
1,594.5


IS DONGSEO CO., LTD.
010780
Ind
144
82.47%
79.59%
50.60%
1,586.3


Hankook &amp; Company Co Ltd
000240
CD
175
81.29%
50.00%
23.53%
1,566.5


Youngone Corporation
111770
CD
138
82.02%
52.78%
29.41%
1,543.1


Lotte Fine Chemical Co Ltd
004000
Mat
119
80.41%
57.14%
28.66%
1,429.7


Hyosung TNC Corp
298020
CD
#N/A
82.68%
55.56%
4.58%
1,380.9


Yungjin Pharm Co Ltd
003520
HC
172
88.59%
83.33%
58.18%
1,313.4


KEPCO Plant Service &amp; Engineering Co Ltd
051600
Ind
145
83.08%
81.63%
30.95%
1,295.2


SK Networks Co Ltd
001740
Ind
159
83.68%
83.67%
32.74%
1,276.0


Zinus Inc
013890
CD
160
83.28%
58.33%
37.25%
1,274.1


Kolon Industries Inc
120110
Mat
117
81.08%
60.71%
11.59%
1,259.6


Shinsegae International Inc
031430
CD
157
83.87%
61.11%
20.92%
1,249.3


SK Discovery Co Ltd
006120
Energy
158
95.01%
100.00%
44.44%
1,234.7


Lotte Tour Development Co., Ltd.
032350
CD
153
84.43%
63.89%
14.38%
1,186.6


Kolmar Korea Co Ltd
161890
CS
132
81.13%
53.85%
15.28%
1,176.0


KG DongbuSteel Co Ltd
016380
Mat
182
81.69%
64.29%
22.56%
1,137.5


Kumho Tire Co Inc
073240
CD
152
84.96%
66.67%
57.52%
1,125.4


Doubleu Games Co Ltd
192080
CD
150
85.48%
69.44%
20.26%
1,111.1


Cosmax Inc
192820
CS
128
82.15%
57.69%
12.50%
1,064.2


Dongwon Systems Corp
014820
Mat
191
82.25%
67.86%
39.02%
1,044.9


Ilyang Pharmaceutical Co., Ltd
007570
HC
179
89.92%
94.44%
25.45%
1,041.5


Lotte Chilsung Beverage Co Ltd
005300
CS
170
83.13%
61.54%
33.33%
1,023.7


Taihan Electric Wire Co Ltd
001440
Ind
#N/A
84.16%
85.71%
19.05%
1,021.5


Youngpoong Corp
000670
Mat
187
82.79%
71.43%
63.41%
1,015.4


Hyosung Advanced Materials Corp
298050
Mat
#N/A
83.33%
75.00%
6.71%
1,015.0


Boryung Pharmaceutical Co., Ltd
003850
HC
174
90.56%
100.00%
27.27%
1,007.5


Foosung Co Ltd
093370
Mat
163
83.86%
78.57%
23.17%
1,002.0


Sebang Global Battery Co Ltd
004490
CD
156
85.96%
72.22%
18.30%
1,001.2


TY Holdings Co Ltd
363280
Ind
#N/A
84.63%
87.76%
52.98%
1,000.4


GRAND KOREA LEISURE CO LTD
114090
CD
164
86.42%
75.00%
28.10%
984.3


Huchems Fine Chemical Corporation
069260
Mat
166
84.38%
82.14%
21.34%
977.1


LG International Corp
001120
Ind
134
85.08%
89.80%
26.19%
969.4


Taekwang Industrial Co., Ltd.
003240
Mat
197
84.89%
85.71%
69.51%
956.2


HYUNDAI HOME SHOPPING NETWORK CORP
057050
CD
151
87.33%
80.56%
53.59%
945.4


Cuckoo Homesys Co Ltd
284740
CD
189
87.77%
83.33%
43.14%
938.6


Daesang Corp
001680
CS
162
83.99%
65.38%
37.50%
900.1


Dongwon Industries Co., Ltd
006040
CS
#N/A
84.83%
69.23%
69.44%
881.6


Hwaseung Enterprise Co Ltd
241590
CD
178
88.19%
86.11%
24.84%
877.4


Hyundai Green Food Co Ltd
005440
CS
167
85.66%
73.08%
22.22%
871.0


SNT MOTIV Co Ltd
064960
CD
171
88.59%
88.89%
38.56%
861.4


ORION Holdings Corp
001800
CS
195
86.48%
76.92%
41.67%
853.9


Doosan Corp
000150
Ind
192
85.48%
91.84%
59.52%
847.9


POONGSAN CORPORATION
103140
Mat
155
85.34%
89.29%
17.68%
840.6


LOTTE Himart Co Ltd
071840
CD
183
88.99%
91.67%
41.83%
836.5


Dongkuk Steel Mill Co., Ltd
001230
Mat
124
85.78%
92.86%
12.20%
835.4


Handsome Corp
020000
CD
165
89.38%
94.44%
33.33%
822.8


Asiana Airlines Inc
020560
Ind
139
85.86%
93.88%
33.33%
809.2


Cuckoo Holdings Co Ltd
192400
CD
198
90.12%
100.00%
69.28%
769.9


LIG Nex1 Co Ltd
079550
Ind
169
86.95%
100.00%
41.67%
762.8


DL Holdings Co Ltd
000210
Ind
122
87.30%
102.04%
15.48%
754.2


Samyang Foods Co Ltd
003230
CS
185
87.87%
84.62%
44.44%
723.3


Hansae Co., Ltd.
105630
CD
176
90.47%
102.78%
26.80%
722.3


Dongwon F&amp;B Co Ltd
049770
CS
190
88.55%
88.46%
48.61%
710.3


Samyang Holdings Corp
000070
CS
186
89.20%
92.31%
47.22%
685.3


HDC Holdings Co Ltd
012630
Mat
177
86.90%
103.57%
44.51%
659.0


Aekyung Industrial Co Ltd
018250
CS
188
89.83%
96.15%
56.94%
657.0


Nexen Tire Corp
002350
CD
194
90.77%
105.56%
44.44%
652.5


Lock&amp;Lock Co Ltd
115390
CD
193
91.08%
108.33%
46.41%
641.1


SPC Samlip Co Ltd
005610
CS
201
91.04%
103.85%
75.00%
623.5

Source: KRX

Now, we have the second batch based on the second filter.We have 5 names here.
If still not 200, then select additional names among the unselected current constituents in order by avg. MC, regardless of classification













Name
Ticker
Sector
KOSPI 200
MC C
MC R
DTV C
MC (₩B)


DB HiTek Co Ltd
000990
IT
75
97.69%
122.22%
10.94%
2,214.0


Innocean Worldwide Inc
214320
Comm
131
97.03%
110.00%
75.00%
1,217.7


CJ CGV Co Ltd
079160
Comm
161
97.55%
120.00%
50.00%
904.8


KEPCO Engineering &amp; Construction Co Inc
052690
Ind
181
89.63%
116.33%
36.31%
692.4


JW Pharmaceutical Corp
001060
HC
180
93.58%
133.33%
70.91%
681.7

Source: KRX




KOSPI 200 Rebalancing: SK BioS/SK IET Fast Entry & LG Corp New Entity (8 Added & 9 Deleted)

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>With Effissimo winning an important victory for shareholder governance at Toshiba’s EGM and helping to sustain the momentum for corporate governance in Japan, we take a look over the pond to examine what is happening in Whitebox Advisors’ opposition to LG’s proposed spin-off.</p>

With Effissimo winning an important victory for shareholder governance at Toshiba’s EGM and helping to sustain the momentum for corporate governance in Japan, we take a look over the pond to examine what is happening in Whitebox Advisors’ opposition to LG’s proposed spin-off.

LG Corp – The Whitebox Case in Light of Activist Victory at Toshiba

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<div>
<p>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 it would be splitting itself into two - the core electronics, chemicals, and telecoms business will stay in LG Corp, with the remaining non-core holdings transferred to NewCo, a new holding company, and subsequently spin-off to LG Corp shareholders.</p>
<p><a href="https://www.smartkarma.com/profiles/douglas-kim" target="_blank" data-smartkarma-citation="accounts:342" rel="noopener">Douglas Kim</a> discussed this transaction beginning with <em><a href="https://skr.ma/BZgGp" target="_blank" rel="noopener">LG Group Announces the Formation of LG NewCo &amp; Split of 4 Companies from LG Corp</a></em>, and I added my thoughts in <em><a href="https://skr.ma/Tdpxs" target="_blank" rel="noopener">2021 High Conviction: LG Corp's Decade-Low Stub</a></em>.</p>
<p>The benefits of the demerger are projected to be two-fold. The NewCo is expected to improve the competitiveness and efficiency of the business (potentially re-rating the company); but also as an interim step to facilitate share swaps with the family with the two holding companies. This has been speculated since Koo Kwang-mo was inaugurated as chairman in 2018. NewCo's board of directors will be headed by Koo Bon-joon, the uncle of Kwang-Mo. </p>
<p>The remaining Holdco will focus on steady earnings from its core operations (electronics, chemicals, and telecom), and via new opportunities. LG provided further rationale for the spin-off in its 4Q20 results - that is attached at the bottom of this insight.</p>
<p>It was noted, however, that LG Corp would maintain 91.5% of the group's assets - ₩9,779.8bn - as at 3Q20. This raises the question: just how much value can be unlocked by via spinning off ~8%?</p>
<p>The NAV and implied stub <em>widened</em> after the demerger announcement, and following a tepid reversal, narrowed around the time <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> announced a US$1bn JV with Magna on the 22 December to make electric car gears.</p>
</div>
<div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/192/369/original/image_5243749941614909471522.png?1614909471" class="editor-image img-responsive" data-smartkarma-image-id="192369"></figure>
<p style="text-align: left;">Source: my calcs, CapIQ</p>
</div>
<div>
<p>On the 15 December, US-headquartered Whitebox said:</p>
<blockquote>
<p>The spin-off does nothing to address LG’s most pressing issue, which is the unprecedented discount at which the company trades relative to its assets and, accordingly, inferior return to shareholders.</p>
<p>Despite clearly favorable alternatives, the board (of LG) has unanimously approved a plan that, in our view, sacrifices minority shareholder return in order to resolve a family succession issue.</p>
</blockquote>
</div>
<div>
<p>Whitebox has now issued a 30-page PowerPoint detailing its objection to the demerger. It's worth a read.</p>
</div>
<p>More below the fold.</p>
<div>
<p></p>
</div>


On 26 November, LG Corp (003550 KS) officially announced it would be splitting itself into two - the core electronics, chemicals, and telecoms business will stay in LG Corp, with the remaining non-core holdings transferred to NewCo, a new holding company, and subsequently spin-off to LG Corp shareholders.
Douglas Kim discussed this transaction beginning with LG Group Announces the Formation of LG NewCo &amp; Split of 4 Companies from LG Corp, and I added my thoughts in 2021 High Conviction: LG Corp's Decade-Low Stub.
The benefits of the demerger are projected to be two-fold. The NewCo is expected to improve the competitiveness and efficiency of the business (potentially re-rating the company); but also as an interim step to facilitate share swaps with the family with the two holding companies. This has been speculated since Koo Kwang-mo was inaugurated as chairman in 2018. NewCo's board of directors will be headed by Koo Bon-joon, the uncle of Kwang-Mo. 
The remaining Holdco will focus on steady earnings from its core operations (electronics, chemicals, and telecom), and via new opportunities. LG provided further rationale for the spin-off in its 4Q20 results - that is attached at the bottom of this insight.
It was noted, however, that LG Corp would maintain 91.5% of the group's assets - ₩9,779.8bn - as at 3Q20. This raises the question: just how much value can be unlocked by via spinning off ~8%?
The NAV and implied stub widened after the demerger announcement, and following a tepid reversal, narrowed around the time LG Electronics (066570 KS) announced a US$1bn JV with Magna on the 22 December to make electric car gears.



Source: my calcs, CapIQ


On the 15 December, US-headquartered Whitebox said:

The spin-off does nothing to address LG’s most pressing issue, which is the unprecedented discount at which the company trades relative to its assets and, accordingly, inferior return to shareholders.
Despite clearly favorable alternatives, the board (of LG) has unanimously approved a plan that, in our view, sacrifices minority shareholder return in order to resolve a family succession issue.



Whitebox has now issued a 30-page PowerPoint detailing its objection to the demerger. It's worth a read.

More below the fold.




LG Corp (003550 KS): Whitebox States Its Case

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<div class="content-highlight"><p>While Amorepacfic spent time building one of the most beautiful headquarters building in Korea in the past several years, LG H&amp;H has become the number one cosmetics company in Korea, bypassing Amorepacific. In this insight, we discuss the key investment merits of LG H&amp;H. Regardless of the market conditions over the next 6-12 months, we believe LG H&amp;H can outperform the overall market. </p></div><h2>Key Catalysts</h2><ul>
<li><strong>Excellent performance of the cosmetics business despite worst-ever global environment for cosmetics </strong></li>
<li>
<strong>Improving overseas online sales of luxury cosmetics</strong> </li>
<li><strong>Improving operating margins of the HDB (Home Care &amp; Daily Beauty) &amp; beverages business units</strong></li>
</ul><div class="content-highlight"><p><strong>We believe that LG H&amp;H has a 30%+ upside from current levels using the relative historical P/E and P/B valuation methods. LG H&amp;H's current price is 1,600,000 won, so a 30% upside would represent 2,080,000 won over a one year period.  </strong></p></div>

While Amorepacfic spent time building one of the most beautiful headquarters building in Korea in the past several years, LG H&amp;H has become the number one cosmetics company in Korea, bypassing Amorepacific. In this insight, we discuss the key investment merits of LG H&amp;H. Regardless of the market conditions over the next 6-12 months, we believe LG H&amp;H can outperform the overall market. Key Catalysts
Excellent performance of the cosmetics business despite worst-ever global environment for cosmetics 

Improving overseas online sales of luxury cosmetics 
Improving operating margins of the HDB (Home Care &amp; Daily Beauty) &amp; beverages business units
We believe that LG H&amp;H has a 30%+ upside from current levels using the relative historical P/E and P/B valuation methods. LG H&amp;H's current price is 1,600,000 won, so a 30% upside would represent 2,080,000 won over a one year period.  

Lg H&H - Will The "Magic" Of the CEO Cha Continue?

South Korea

LG Corp. is a holding company, which operates subsidiaries including LG Electronics, LG Household & Health Care, LG Chem Ltd., and Dacom Corp. The Company's main business areas are electronics, chemicals, and household products manufacturing and telecommunications services.

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

LG Corp (003550 KS)

LG Corp Split: Schedule, Financials, Base Price MC, Subs Stake Value, & KOSPI 200 Inclusion

This post details the LG Corp split: schedule, financials, base price market cap, subsidiary stake values, and KOSPI 200 inclusion process.

Sanghyun Park

KOSPI 200 Rebalancing: SK BioS/SK IET Fast Entry & LG Corp New Entity (8 Added & 9 Deleted)

This post tracks the KOSPI 200 June review based on the average daily MC as of April 5. We have 8 additions, incl. SK BioS/SK IET fast entry as...

Sanghyun Park

LG Corp – The Whitebox Case in Light of Activist Victory at Toshiba

Could the Effisimo's victory over Toshiba at its EGM signal a wave of improved corporate governance in Asia? LG Corp's battle against Whitebox will...

Mio Kato

LG Corp (003550 KS): Whitebox States Its Case

A ~64% discount to NAV - or 66% if using Whitebox's calcs - is non-sensical, and provides a good risk-adjusted return. The downside appears limited...

David Blennerhassett

Lg H&H - Will The "Magic" Of the CEO Cha Continue?

In this insight, we discuss the key investment merits of LG H&H. Regardless of the market conditions over the next 6-12 months, we believe LG H&H...

Douglas Kim

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