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>KRX approved the listing of ACE POSCO Group Focus. This fund mirrors the performance of the FnGuide POSCO Group Focus Index. KRX will announce the listing date next week.</li>
<li>This index encompasses 6 Posco affiliates and 4 non-Posco stocks. The top 3 constituents, each assigned a 25% weight, are POSCO Holdings, Posco International, and Posco Future M.</li>
<li>We should explore various long-short setups for stocks within the local battery sector (long Posco affiliates and short others), starting with the listing of this ACE POSCO Group Focus ETF.</li>
</ul>


KRX approved the listing of ACE POSCO Group Focus. This fund mirrors the performance of the FnGuide POSCO Group Focus Index. KRX will announce the listing date next week.
This index encompasses 6 Posco affiliates and 4 non-Posco stocks. The top 3 constituents, each assigned a 25% weight, are POSCO Holdings, Posco International, and Posco Future M.
We should explore various long-short setups for stocks within the local battery sector (long Posco affiliates and short others), starting with the listing of this ACE POSCO Group Focus ETF.


Exploring the Launch of a Posco Group-Focused ETF: Flow Trading Insights

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

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.

Equity Capital Markets

EcoPro Materials / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ecopro-materials" target="_blank" data-smartkarma-citation="entities:36806:1" rel="noopener">EcoPro Materials (ECO123 KS)</a> is looking to raise up to US$500m in its Korean IPO.</li>
<li>Ecopro Materials (EPM) manufactures and sells high-nickel precursors, one of the key materials for high-nickel cathode materials for secondary (rechargeable) batteries.</li>
<li>In our previous note, we covered the company’s performance. In this note, we will undertake a  peer comparison.</li>
</ul>



EcoPro Materials (ECO123 KS) is looking to raise up to US$500m in its Korean IPO.
Ecopro Materials (EPM) manufactures and sells high-nickel precursors, one of the key materials for high-nickel cathode materials for secondary (rechargeable) batteries.
In our previous note, we covered the company’s performance. In this note, we will undertake a  peer comparison.


Ecopro Materials IPO - Peer Comparison - Doesn't Particularly Stand Out

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

Posco International Corporation / Equity Bottom-Up

<ul>
<li>We believe that Warren Buffett's investments in Japanese trading companies have also positively impacted several Korean trading companies in the past three years. </li>
<li>We highlighted seven Korean trading companies three years ago including Posco International and their share prices are up more than 76% on average in this period. </li>
<li>Despite their outstanding share price performance in the past three years, there could be some significant headwinds ahead, as evidenced by the steep inverted yield curve.</li>
</ul>


We believe that Warren Buffett's investments in Japanese trading companies have also positively impacted several Korean trading companies in the past three years. 
We highlighted seven Korean trading companies three years ago including Posco International and their share prices are up more than 76% on average in this period. 
Despite their outstanding share price performance in the past three years, there could be some significant headwinds ahead, as evidenced by the steep inverted yield curve.


Warren Buffett's Investments in Japanese Trading Firms: Impact on Korean Trading Companies

<ul>
<li>The trigger for yesterday's sell-off was the sudden collective decision of the brokerages that had been allowing credit trading for these stocks to halt credit trading simultaneously.</li>
<li>There is a possibility that the identities of the stocks under investigation were leaked, and these brokerages took preemptive actions.</li>
<li>There have also been observations of large-cap stocks that may become the next targets. Some notable examples include Cosmo Chemical, Kum Yang, Posco International, and Ecopro Co.</li>
</ul>


The trigger for yesterday's sell-off was the sudden collective decision of the brokerages that had been allowing credit trading for these stocks to halt credit trading simultaneously.
There is a possibility that the identities of the stocks under investigation were leaked, and these brokerages took preemptive actions.
There have also been observations of large-cap stocks that may become the next targets. Some notable examples include Cosmo Chemical, Kum Yang, Posco International, and Ecopro Co.


Market Talk on the Five Stocks Hitting the Lower Limit Yesterday

<ul>
<li>Once again, the profit from Long Short basket trading has also been significant this time. The returns were quite juicy even if the period is shortened to From-February. </li>
<li>The critical question now is whether the juice remains until the effective date. From what I can see, there is still some juice left.</li>
<li>This is because it is generally observed that the flow trading window for this event tends to continue beyond the effective date.</li>
</ul>


Once again, the profit from Long Short basket trading has also been significant this time. The returns were quite juicy even if the period is shortened to From-February. 
The critical question now is whether the juice remains until the effective date. From what I can see, there is still some juice left.
This is because it is generally observed that the flow trading window for this event tends to continue beyond the effective date.


KOSPI Size Indexes Migrants: Official Results & Price Performances So Far

South Korea

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)

Exploring the Launch of a Posco Group-Focused ETF: Flow Trading Insights

This post explores the launch of a Posco Group-focused ETF, which will likely debut around mid-this month, and its implications from a flow trading...

Sanghyun Park

Ecopro Materials IPO - Peer Comparison - Doesn't Particularly Stand Out

EcoPro Materials (ECO123 KS) is looking to raise up to US$500m in its Korean IPO. In our previous note, we covered the company’s performance. In...

Ethan Aw

Warren Buffett's Investments in Japanese Trading Firms: Impact on Korean Trading Companies

We believe that Warren Buffett's investments in Japanese trading companies have also positively impacted several Korean trading companies in the...

Douglas Kim

Market Talk on the Five Stocks Hitting the Lower Limit Yesterday

This post examines the major issues that have garnered significant attention based on the information available so far regarding the incident of...

Sanghyun Park

KOSPI Size Indexes Migrants: Official Results & Price Performances So Far

KRX announced the official results of the KOPSI Size Indexes migration for the March rebalancing. This post offers key takeaways and trading...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)