Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

Hyundai Engineering & Construction / Equity Bottom-Up

<ul>
<li>Mohammed bin Salman (MBS), the Crown Prince of Saudi Arabia, is expected to visit South Korea in late October/early November 2022.</li>
<li>In this insight, we discuss the top 14 stocks in Korea that could benefit from his visit of South Korea in a couple of months.</li>
<li>We think that many local investors have been buying some of the 14 stocks mentioned in this insight with the expectation of further positive news from MBS visiting South Korea.</li>
</ul>


Mohammed bin Salman (MBS), the Crown Prince of Saudi Arabia, is expected to visit South Korea in late October/early November 2022.
In this insight, we discuss the top 14 stocks in Korea that could benefit from his visit of South Korea in a couple of months.
We think that many local investors have been buying some of the 14 stocks mentioned in this insight with the expectation of further positive news from MBS visiting South Korea.


Top 14 Korean Stocks to Benefit from Mohammed Bin Salman's Visit to South Korea in October/November

Founder/CEO of ROK Advisory, ROK Advisory LLC

Ken S. Kim

Founder/CEO of ROK Advisory

ROK Advisory LLC

ROK is an independent research advisory firm. We guide you to minimize the information gap between foreign and local investors in Northeast Asia with a focus in Korea, Taiwan and Japan.

Independent Research Advisory Firm

Samsung Electronics Pref Shares / Equity Bottom-Up

<ul>
<li>With JY Lee pardoned this past Monday, there is a lot of speculation about the speed of restructuring</li>
<li>A lot will depend on what happens with whether Samsung Life will be forced to sell its shares in Samsung Electronics</li>
<li>What should be done for the best of the family and shareholders is to buyout the pref shares</li>
</ul>


With JY Lee pardoned this past Monday, there is a lot of speculation about the speed of restructuring
A lot will depend on what happens with whether Samsung Life will be forced to sell its shares in Samsung Electronics
What should be done for the best of the family and shareholders is to buyout the pref shares


<ul>
<li>Our base case NAV valuation of Samsung C&amp;T is 147,095 won per share, representing 20% higher than current share price.</li>
<li>Samsung C&amp;T is up 4.7% YTD, significantly outperforming the market and its major affiliates including Samsung Electronics (down 24.9% YTD).</li>
<li>We mention four major factors leading Samsung C&amp;T to outperform Samsung Electronics' shares this year including shift to value stocks, Neom project, higher commodity prices, and downturn in semiconductor sector.</li>
</ul>


Our base case NAV valuation of Samsung C&amp;T is 147,095 won per share, representing 20% higher than current share price.
Samsung C&amp;T is up 4.7% YTD, significantly outperforming the market and its major affiliates including Samsung Electronics (down 24.9% YTD).
We mention four major factors leading Samsung C&amp;T to outperform Samsung Electronics' shares this year including shift to value stocks, Neom project, higher commodity prices, and downturn in semiconductor sector.


Samsung C&T: Closing the NAV Discount Gap

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.

<ul>
<li>The market seems to be focusing more on the cost risk increase than on Hyundai E&amp;C's sales growth following the top-line expansion of the urban renewal market.</li>
<li>Instead, the market is looking forward to the possibility that Hyundai E&amp;C's leap forward as a nuclear power solution provider will lead to a growth premium for the share price. </li>
<li>The trading point should be to target this risk when the price is peaking out from the nuclear power theme. Specifically, we need to consider a sector pair long/short setup.</li>
</ul>


The market seems to be focusing more on the cost risk increase than on Hyundai E&amp;C's sales growth following the top-line expansion of the urban renewal market.
Instead, the market is looking forward to the possibility that Hyundai E&amp;C's leap forward as a nuclear power solution provider will lead to a growth premium for the share price. 
The trading point should be to target this risk when the price is peaking out from the nuclear power theme. Specifically, we need to consider a sector pair long/short setup.


Hyundai Engineering & Construction (000720 KS): Trading Points

<ul>
<li>We highlight the top five catalysts of why we believe Hyundai E&amp;C is likely to outperform the market in the next 6-12 months. </li>
<li>Higher housing supply, surge in new orders, expansion in nuclear projects/inclusion in nuclear ETFs, Neom mega project, and shift to value stocks are likely to drive Hyundai E&amp;C's outperformance.</li>
<li>Housing/Architecture accounted for 57.1% and 59.7% of total sales in 2021 and 1Q 2022, respectively. Plants/power plants accounted for 25.7% of total sales in 2021.</li>
</ul>


We highlight the top five catalysts of why we believe Hyundai E&amp;C is likely to outperform the market in the next 6-12 months. 
Higher housing supply, surge in new orders, expansion in nuclear projects/inclusion in nuclear ETFs, Neom mega project, and shift to value stocks are likely to drive Hyundai E&amp;C's outperformance.
Housing/Architecture accounted for 57.1% and 59.7% of total sales in 2021 and 1Q 2022, respectively. Plants/power plants accounted for 25.7% of total sales in 2021.


Hyundai Engineering & Construction: Top Five Catalysts

South Korea

Samsung C&T Corporation conducts diversified business support services and resort operation activities. The Company offers a range of services in areas including clothing retail, construction, energy, real estate, food service, and resort accommodations. Samsung C&T also operates a resort with amusement rides, a zoo, water park, golf clubs, and restaurants.

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Samsung C&T (028260 KS)

Top 14 Korean Stocks to Benefit from Mohammed Bin Salman's Visit to South Korea in October/November

In this insight, we discuss the top 14 stocks in Korea that could benefit from Saudi Arabia's Mohammed bin Salman's visit of South Korea in a...

Douglas Kim

JY Lee Pardoned; What Should He Do Next?

What is good for JY Lee could be good for minority shareholders of Samsung Electronics. How to get 2 birds with one stone.

Ken S. Kim

Samsung C&T: Closing the NAV Discount Gap

Four major factors leading Samsung C&T to outperform Samsung Electronics' shares this year include a shift to value stocks, Neom project, higher...

Douglas Kim

Hyundai Engineering & Construction (000720 KS): Trading Points

This post discusses the trading points, particularly the viability of a sector peer long/short setup, for Hyundai Engineering and Construction.

Sanghyun Park

Hyundai Engineering & Construction: Top Five Catalysts

Higher housing supply, surge in new orders, expansion in nuclear projects/inclusion in nuclear ETFs, Neom mega project, and shift to value stocks...

Douglas Kim

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