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 Jul 5th which has an aggregated short interest worth USD6.1bn.</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 Hlb (028300 KS), Posco (005490 KS).</li>
</ul>


We analyzed the changes in short interest of KRX Stocks as of Jul 5th which has an aggregated short interest worth USD6.1bn.
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 Hlb (028300 KS), Posco (005490 KS).


KRX Short Interest Weekly (Jul 5th): Hlb, Posco

<ul>
<li>We analyzed the changes in short interest of KRX Stocks as of Jun 14th which has an aggregated short interest worth USD5.8bn.</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 L&amp;F, Samsung SDI, Samsung C&amp;T, Sk Hynix, Hyundai Motor.</li>
</ul>


We analyzed the changes in short interest of KRX Stocks as of Jun 14th which has an aggregated short interest worth USD5.8bn.
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 L&amp;F, Samsung SDI, Samsung C&amp;T, Sk Hynix, Hyundai Motor.


KRX Short Interest Weekly (Jun 14th): L&F, Samsung SDI, Samsung C&T, Sk Hynix, Hyundai Motor

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>On 3 June, the shares of Korea Gas jumped limit up 30% to 38,700 won on huge volume (13.4 million), which was 37x higher than the previous day volume traded. </li>
<li>This was driven by the announcement of the South Korean President Yoon giving the approval to conduct exploratory drilling for potentially vast oil and gas prospects near Pohang. </li>
<li>The Korean government announced that there is a "very high" possibility the area contains as much as 14 billion barrels of oil and gas.</li>
</ul>


On 3 June, the shares of Korea Gas jumped limit up 30% to 38,700 won on huge volume (13.4 million), which was 37x higher than the previous day volume traded. 
This was driven by the announcement of the South Korean President Yoon giving the approval to conduct exploratory drilling for potentially vast oil and gas prospects near Pohang. 
The Korean government announced that there is a "very high" possibility the area contains as much as 14 billion barrels of oil and gas.


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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

HD Hyundai Marine Solution  / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hd-hyundai-marine-solution-co" target="_blank" data-smartkarma-citation="entities:41002:1" rel="noopener">HD Hyundai Marine Solution (443060 KS)</a> is looking to raise KRW 742bn (US$540m) in its IPO, valuing the company at KRW 3,707bn (US$2.69bn). Listing is expected to be in early-May.</li>
<li>Competition for the shares has been fierce with institutional investors indicating demand for 201x the number of shares on offer at prices higher than the top end of the range.</li>
<li>Barring a doubling of the stock price, the earliest that the stock will be added to major indices is December 2024. So, no passive buying in the short-term.</li>
</ul>



HD Hyundai Marine Solution (443060 KS) is looking to raise KRW 742bn (US$540m) in its IPO, valuing the company at KRW 3,707bn (US$2.69bn). Listing is expected to be in early-May.
Competition for the shares has been fierce with institutional investors indicating demand for 201x the number of shares on offer at prices higher than the top end of the range.
Barring a doubling of the stock price, the earliest that the stock will be added to major indices is December 2024. So, no passive buying in the short-term.


HD Hyundai Marine Solution (443060 KS) IPO: No Passive Buying Near-Term

Cross Asset Strategy

<ul>
<li>In this analysis, we provide a back testing analysis of the end of mandatory lock-up periods monthly data in Korea in the past six months.</li>
<li>All in all, this end of mandatory lock-up period monthly data continues to provide some alpha generating results.</li>
<li>In the past six months, they have tended to work better in periods when KOSPI declines rather than in periods when KOSPI rises. </li>
</ul>


In this analysis, we provide a back testing analysis of the end of mandatory lock-up periods monthly data in Korea in the past six months.
All in all, this end of mandatory lock-up period monthly data continues to provide some alpha generating results.
In the past six months, they have tended to work better in periods when KOSPI declines rather than in periods when KOSPI rises. 


Back Testing the End of Mandatory Lock-Up Periods Monthly Data in Korea

South Korea

LX International is a commodity trading and mining company.  The Company develops and trades coal, oil, gas, non-ferrous metals, palm oil, and renewable energy. LG International also trades IT related component/equipment, petrochemical and steel product.

SK Networks Co., Ltd. is a general trading company.  The Company trades general merchandise, such as steel, oil, timber, petrochemical, household appliances, clothing, textile products, and information technology equipment.  SK Networks provides insurance and financial services through subsidiaries.

Hyundai Corporation is a trading company.  The Company exports Hyundai Group's products, such as steel, ships, plants, automobiles, semiconductors, and machinery.  Hyundai Corporation also imports machinery and raw materials.

iMarketKorea Inc. provides procurement services and MRO goods.  The Company operates in North America, South America, Asia, and Europe.

GS Global Corporation is a general trading company which exports heavy industrial products.  The Company's exports include steel, machinery, electronic chemical products, coal, and oil.  GS Global exports its merchandise mainly to the U.S., Japan, and China.

Sam Yung Trading Co., Ltd. imports and exports chemicals, such as monomer and solvent.  The Company also exports plastic ophthalmic lenses to Japan, China, Hong Kong, Britain, Germany, and other countries.

Hydro Lithium Inc manufactures and distributes full scale lithium products. The Company produces battery grade lithium hydroxide and other related products. Hydro Lithium also offers structural metal products, bridge, tunnel, and railway construction services.

STX Corporation is an investment holding company.  The Company, through its subsidiaries, manufactures medium-sized diesel engines for ships, generators, trains, and tanks.

AJ Networks Co., Ltd. is a holdings company that is engaged in various industries including auto rentals, general rentals, logistics/distribution, and finance.  The Company's subsidiaries include AJ Rentacar, AJ Total, AJ Park, and AJ Capital Partners.

Samsung Heavy Industries Co., Ltd. manufactures crude oil tankers, container vessels, bulk carriers, cruisers, and passenger ferries.  The Company also produces steel and bridge structures, and material handling equipment.  In addition, Samsung Heavy Industries provides civil engineering, architectural, and plant construction services.

Air Lease Corporation is an aircraft leasing company. The Company is principally  engaged in purchasing commercial aircraft and leasing to airlines around the world. Air Lease operates on a global basis, providing aircraft to airline customers in regions that include Asia, the Pacific Rim, Latin America, the Middle East and Eastern Europe.

Beacon Roofing Supply, Inc. distributes residential and non-residential roofing materials in the United States and Canada.  The Company also distributes other complementary building materials, including siding, windows, specialty lumber products, and waterproofing systems, for residential and non-residential building exteriors.

WESCO International, Inc. distributes electrical products and other industrial maintenance, repair, and operating supplies.  The Company also provides integrated supply services.  WESCO operates branches and distribution centers in the United States, Canada, Puerto Rico, Guam, Mexico, the United Kingdom, and Singapore, which serve customers worldwide.

GATX Corporation leases, operates, manages, and remarkets long-lived, widely used assets, primarily in the rail and marine markets. The Company leases tank and freight cars and locomotives in North America, Europe, and India. GATX also actively manages transportation and other leased assets on behalf of third parties.

Sojitz Corporation is a general trading company.  The Company has business divisions such as Machinery & Aerospace, Energy & Mineral Resources, Chemicals & Plastics, Real Estate Development & Forest Products, Consumer Lifestyle Business, and New Business Development Group.  Sojitz was formed through the business integration between Nichimen and Nissho Iwai.

MISUMI Group Inc. distributes precision machinery parts by mail order. The products include a variety of components such as press die, plastic mold, automated machinery, pc & network, and wiring.  The Company also sells supplies for factories, hospitals, and restaurants and semi-conductors by mail order.

MonotaRO Co., Ltd. mainly sells machine tools, engine parts, and factory consumable goods on the web site.

Univar Inc. distributes industrial and specialty chemical products. The Company offers solvents, resins, pigments, acids, bases, surfactants, glycols, inorganic compounds, and alcohols. Univar supplies its products to the coatings and adhesives, food, oil and gas, personal care, and pharmaceutical industries worldwide.

Applied Industrial Technologies, Inc. distributes bearings and seals, power transmission and fluid power components, hydraulic and pneumatic components, industrial rubber products, linear components, and general maintenance items. The Company also provides engineering design and systems integration services, as well as mechanical, fabricated rubber, and fluid power shop services.

IMCD Group NV sells specialty chemicals and food ingredients. The Company supplies detergent surfactants, builders, rheology modifiers, solubilizers, and functional additives. IMCD serves customers worldwide.

Posco International Corporation is a general trading company.  The Company exports and imports steel, cement, crude oil, heavy machinery, automobile parts, and textiles.  Daewoo also manufactures synthetic fabrics for footwear, garments, and car seats, and operates a department store in Masan.

Posco International Corporation (047050 KS)

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Posco International Corporation (047050 KS)

KRX Short Interest Weekly (Jul 5th): Hlb, Posco

We analyzed KRX short interest report for the past week and highlighted short interest changes in Hlb(028300 KS), Posco(005490 KS).

Ke Yan, CFA, FRM

KRX Short Interest Weekly (Jun 14th): L&F, Samsung SDI, Samsung C&T, Sk Hynix, Hyundai Motor

We analyzed KRX short interest report for the past week and highlighted short interest changes in L&F, Samsung SDI, Samsung C&T, Sk Hynix, Hyundai...

Ke Yan, CFA, FRM

Korea Gas Corp: Drill Baby Drill

KOGAS shares jumped 30% driven by the announcement of the South Korean President Yoon giving the approval to conduct exploratory drilling for...

Douglas Kim

HD Hyundai Marine Solution (443060 KS) IPO: No Passive Buying Near-Term

HD Hyundai Marine Solution lists today. The oversubscription from retail and institutions should spill over into trading and peers have moved...

Brian Freitas

Back Testing the End of Mandatory Lock-Up Periods Monthly Data in Korea

In this analysis, we provide a back testing analysis of the end of mandatory lock-up periods monthly data in Korea in the past six months....

Douglas Kim

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