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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Foreign traders face challenges in LG Display's rights offering. While LG Display provides updates through English disclosures, detailed schedule information exclusive to the Korean prospectus is missing.</li>
<li>To ensure access to all Korean disclosures, use the DART English service. DART imports English disclosures from KIND and provides English titles for Korean-only disclosures. Use translation tools like ChatGPT.</li>
<li>FSC enhances services to address practical issues. For lengthy documents, only English titles are available. FSC will provide English for subtitles, tables, and charts, using an automatic translation system.</li>
</ul>


Foreign traders face challenges in LG Display's rights offering. While LG Display provides updates through English disclosures, detailed schedule information exclusive to the Korean prospectus is missing.
To ensure access to all Korean disclosures, use the DART English service. DART imports English disclosures from KIND and provides English titles for Korean-only disclosures. Use translation tools like ChatGPT.
FSC enhances services to address practical issues. For lengthy documents, only English titles are available. FSC will provide English for subtitles, tables, and charts, using an automatic translation system.


Practical Issues with English Disclosure Sites in Korea (Feat. LG Display) & FSC's Latest Solutions

<ul>
<li>Unlike typical Korean stock rights arbitrage, LG Display's significant equity offering and active stock futures trading anticipate a spread opening, akin to the recent Hanwha Ocean scenario.</li>
<li>In contrast to Hanwha Ocean, the absence of major sellers, like KDB, sets this event apart. LG Electronics, the major shareholder with a 37.9% stake, intends to participate.</li>
<li>Despite differences from Hanwha Ocean, LG Display's high retail shareholder presence implies a substantial likelihood of stock rights overhang, even without players like KDB.</li>
</ul>


Unlike typical Korean stock rights arbitrage, LG Display's significant equity offering and active stock futures trading anticipate a spread opening, akin to the recent Hanwha Ocean scenario.
In contrast to Hanwha Ocean, the absence of major sellers, like KDB, sets this event apart. LG Electronics, the major shareholder with a 37.9% stake, intends to participate.
Despite differences from Hanwha Ocean, LG Display's high retail shareholder presence implies a substantial likelihood of stock rights overhang, even without players like KDB.


Arb Trading with Stock Rights in Korea: A Basic Guide Featuring LG Display Offering

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. </li>
<li>The rights offering capital raise involves 142 million shares, which represent 39.7% of its existing outstanding shares. </li>
<li>We believe this rights offering will have a negative impact on LG Display's share price as it will significantly dilute existing shareholders. </li>
</ul>


LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. 
The rights offering capital raise involves 142 million shares, which represent 39.7% of its existing outstanding shares. 
We believe this rights offering will have a negative impact on LG Display's share price as it will significantly dilute existing shareholders. 


LG Display: Announces a Rights Offering Capital Raise of 1.36 Trillion Won

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX Stocks as of Jun 28th which has an aggregated short interest worth USD5.9bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Lg Electronics, Hyundai Motor.</li>
</ul>


We analyzed the changes in short interest of KRX Stocks as of Jun 28th which has an aggregated short interest worth USD5.9bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Lg Electronics, Hyundai Motor.


KRX Short Interest Weekly (Jun 28th): Lg Electronics, Hyundai Motor

Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

Novatek Microelectronics Corp / Equity Bottom-Up

<ul>
<li>We expect Novatek Microelectronics Corp (3034 TT) to achieve approximately a 5% QoQ growth in revenue and relatively flat gross margin (GM) QoQ in 3Q24.</li>
<li>
<a href="https://www.smartkarma.com/entities/semiconductor-manufacturing-international-corp-smic" target="_blank" data-smartkarma-citation="entities:14231:1" rel="noopener">Semiconductor Manufacturing International Corp (SMIC) (981 HK)</a> and HLMC are capable of producing DDICs at 40nm and below.</li>
<li>Novatek is experiencing a decline in demand for 55nm Touch with Display Driver (TDDI) in 3Q24.</li>
</ul>


We expect Novatek Microelectronics Corp (3034 TT) to achieve approximately a 5% QoQ growth in revenue and relatively flat gross margin (GM) QoQ in 3Q24.

Semiconductor Manufacturing International Corp (SMIC) (981 HK) and HLMC are capable of producing DDICs at 40nm and below.
Novatek is experiencing a decline in demand for 55nm Touch with Display Driver (TDDI) in 3Q24.


Novatek (3034.TT): To Achieve a ~5% QoQ Growth in Revenue and Relatively Flat GM QoQ in 3Q24

South Korea

LG Display Company Ltd. develops and manufactures digital display products. The Company's products include thin film transistor-liquid crystal displays (TFT-LCD) for notebook and desktop computer monitors, TVs, and mobile phones. LG Display provides its products to overseas and domestic markets.

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

LG Display (ADR) (LPL US)

Practical Issues with English Disclosure Sites in Korea (Feat. LG Display) & FSC's Latest Solutions

This post delves into the practical challenges of using English disclosure sites in Korea, using LG Display as an example, and introduces the...

Sanghyun Park

Arb Trading with Stock Rights in Korea: A Basic Guide Featuring LG Display Offering

This post offers a basic guide to arbitrage trading using stock rights in Korean equity offerings, with LG Display's recent announcement as an...

Sanghyun Park

LG Display: Announces a Rights Offering Capital Raise of 1.36 Trillion Won

LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. We believe this will have a negative...

Douglas Kim

KRX Short Interest Weekly (Jun 28th): Lg Electronics, Hyundai Motor

We analyzed KRX short interest report for the past week and highlighted short interest changes in Lg Electronics, Hyundai Motor.

Ke Yan, CFA, FRM

Novatek (3034.TT): To Achieve a ~5% QoQ Growth in Revenue and Relatively Flat GM QoQ in 3Q24

Novatek Microelectronics Corp expected to see 5% QoQ revenue growth in 3Q24, while facing declining demand for 55nm TDDI. SMIC and HLMC can...

Patrick Liao

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Practical Issues with English Disclosure Sites in Korea (Feat. LG Display) & FSC's Latest Solutions

This post delves into the practical challenges of using English disclosure sites in Korea, using LG Display as an example, and introduces the...

Sanghyun Park

Arb Trading with Stock Rights in Korea: A Basic Guide Featuring LG Display Offering

This post offers a basic guide to arbitrage trading using stock rights in Korean equity offerings, with LG Display's recent announcement as an...

Sanghyun Park

LG Display: Announces a Rights Offering Capital Raise of 1.36 Trillion Won

LG Display announced today that it will conduct a rights offering capital raise worth 1.36 trillion won. We believe this will have a negative...

Douglas Kim

KRX Short Interest Weekly (Jun 28th): Lg Electronics, Hyundai Motor

We analyzed KRX short interest report for the past week and highlighted short interest changes in Lg Electronics, Hyundai Motor.

Ke Yan, CFA, FRM

Novatek (3034.TT): To Achieve a ~5% QoQ Growth in Revenue and Relatively Flat GM QoQ in 3Q24

​Novatek Microelectronics Corp expected to see 5% QoQ revenue growth in 3Q24, while facing declining demand for 55nm TDDI. SMIC and HLMC can...

Patrick Liao

Novatek Microelectronics Corp expected to see 5% QoQ revenue growth in 3Q24, while facing declining demand for 55nm TDDI. SMIC and HLMC can...