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

Samsung Electronics Pref Shares / Event-Driven

We have 8 in total currently sitting below -1.00σ on a 20-day moving average. Korean Air Lines 1P tops the list with a -2.07σ, closely followed by Namyang Dairy 1P and Samsung SDI 1P. CJ Corp's two preferred share types are also in a pretty substantial diversion relative to their ordinary share.









Preferred shares
Ticker
Market cap
Disparity to ordinary share
Sigma on a 20-day moving average


Korean Air Lines Co Ltd 1P
003495
₩44.9B
-37.88%
-2.07


Namyang Dairy Products Co., Ltd. 1P
003925
₩29.1B
54.50%
-1.97


Samsung SDI Co Ltd 1P
006405
₩677.9B
33.07%
-1.90


CJ Corp 1P
001045
₩146.5B
39.72%
-1.72


CJ Corp 4PB
00104K
₩358.0B
21.21%
-1.61


Yuhwa Securities Co., Ltd. 1P
003465
₩48.1B
-2.04%
-1.46


DL E&amp;C Ord Shs 1P
37550K
₩165.9B
43.73%
-1.42


Doosan Corp 1P
000155
₩192.6B
29.64%
-1.14

Source: KRX

These are the largest cap preferred shares having a market cap of ₩300B or more. Samsung Electronics 1P is still going strong at +2.00σ. Amorepacific 1P and AmoreG 3PB are also running away from their ordinary shares. Among the large-cap prefs, Samsung SDI 1P currently has the widest diversion, followed by CJ Corp 4PB. 









Preferred shares
Ticker
Market cap
Disparity to ordinary share
Sigma on a 20-day moving average


Samsung Electronics Co Ltd 1P
005935
₩60,811.3B
7.74%
2.00


Hyundai Motor Co 2PB
005387
₩4,122.9B
50.66%
0.91


LG Chem Ltd 1P
051915
₩3,129.3B
52.34%
0.98


Hyundai Motor Co 1P
005385
₩2,715.8B
51.31%
-0.44


LG Household &amp; Healthcare Ltd 1P
051905
₩1,495.0B
53.19%
1.09


LG Electronics Inc. 1P
066575
₩1,228.8B
51.85%
1.27


Amorepacific Corp 1P
090435
₩1,092.7B
64.49%
2.11


Mirae Asset Securities Co Ltd 2PB
00680K
₩690.2B
51.19%
0.11


Samsung SDI Co Ltd 1P
006405
₩677.9B
33.07%
-1.90


Samsung Fire &amp; Marine Insurance Co Ltd 1P
000815
₩528.3B
22.12%
-0.36


Korea Investment Holdings Co., Ltd. 1P
071055
₩509.7B
17.92%
-0.45


SHINYOUNG SECURITIES CO LTD 1P
001725
₩445.8B
-1.61%
1.92


Daishin Securities Co., Ltd 1P
003545
₩427.7B
12.27%
0.47


Kumho Petro Chemical Co Ltd 1P
011785
₩387.0B
47.54%
1.19


CJ Corp 4PB
00104K
₩358.0B
21.21%
-1.61


Amorepacific Group 3PB
00279K
₩352.8B
33.40%
2.51


Hanwha Corp 3PB
00088K
₩349.4B
51.10%
1.15


Samsung Electro-Mechanics Co., Ltd. 1P
009155
₩300.9B
37.08%
1.35

Source: KRX 




Korea Preferred Shares Disparity & Sigma, Feat. Samsung Electronics 1P & CJ Corp 4PB

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</div><div>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a>, <a href="https://www.smartkarma.com/entities/china-merchants-bank-co-ltd-3388a037-4214-4997-b45d-520518cfdb57" target="_blank" data-smartkarma-citation="entities:10987:1" rel="noopener">China Merchants Bank H (3968 HK)</a>, <a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a>, <a href="https://www.smartkarma.com/entities/bilibili-inc-83a27302-cd7d-4e6a-a1de-bcf93eb022c3" target="_blank" data-smartkarma-citation="entities:32215:1" rel="noopener">Bilibili Inc (9626 HK)</a> and <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy Co (2319 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/citic-securities-h" target="_blank" data-smartkarma-citation="entities:463:1" rel="noopener">Citic Securities (H) (6030 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>, <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC Holdings (5 HK)</a> and <a href="https://www.smartkarma.com/entities/haier-smart-home-co-ltd-b3ef445f-0f54-4586-8c58-9073de98d60e" target="_blank" data-smartkarma-citation="entities:31105:1" rel="noopener">Haier Smart Home Co Ltd (6690 HK)</a>. Shorts increased in the Communication Services, Consumer Discretionary, Information Technology, Consumer Staples and Materials sectors, and decreased in the Financials sector.</div><div>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>, <a href="https://www.smartkarma.com/entities/sharp-corp" target="_blank" data-smartkarma-citation="entities:391:1" rel="noopener">Sharp Corp (6753 JP)</a>, <a href="https://www.smartkarma.com/entities/cyberagent-inc" target="_blank" data-smartkarma-citation="entities:8197:1" rel="noopener">CyberAgent Inc (4751 JP)</a>, <a href="https://www.smartkarma.com/entities/keihan-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:6120:1" rel="noopener">Keihan Holdings Co., Ltd. (9045 JP)</a> and <a href="https://www.smartkarma.com/entities/jfe-holdings-inc" target="_blank" data-smartkarma-citation="entities:210:1" rel="noopener">JFE Holdings (5411 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/lasertec-corp" target="_blank" data-smartkarma-citation="entities:4126:1" rel="noopener">Lasertec Corp (6920 JP)</a>, <a href="https://www.smartkarma.com/entities/base-inc" target="_blank" data-smartkarma-citation="entities:28353:1" rel="noopener">BASE Inc (4477 JP)</a>, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/daito-trust-construct-co-ltd" target="_blank" data-smartkarma-citation="entities:10503:1" rel="noopener">Daito Trust Construct (1878 JP)</a> and <a href="https://www.smartkarma.com/entities/ai-inside-inc" target="_blank" data-smartkarma-citation="entities:33241:1" rel="noopener">AI Inside (4488 JP)</a>. Shorts increased in the Consumer Staples and Consumer Discretionary sectors, and decreased in the Information Technology sector.</div><div>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-display-co-ltd" target="_blank" data-smartkarma-citation="entities:7145:1" rel="noopener">LG Display (034220 KS)</a> and <a href="https://www.smartkarma.com/entities/shinpoong-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7296:1" rel="noopener">Shinpoong Pharmaceutical (019170 KS)</a>. The largest percentage increase in shorts was seen on <a href="https://www.smartkarma.com/entities/kcc-corp" target="_blank" data-smartkarma-citation="entities:11109:1" rel="noopener">Kcc Corp (002380 KS)</a>, <a href="https://www.smartkarma.com/entities/shinpoong-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7296:1" rel="noopener">Shinpoong Pharmaceutical (019170 KS)</a>, <a href="https://www.smartkarma.com/entities/daelim-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:18095:1" rel="noopener">DL Co Ltd (000210 KS)</a> and <a href="https://www.smartkarma.com/entities/dongkuk-steel-mill-co-ltd" target="_blank" data-smartkarma-citation="entities:7293:1" rel="noopener">Dongkuk Steel Mill (001230 KS)</a>.</div><div>In Taiwan, shorts increased on <a href="https://www.smartkarma.com/entities/china-steel-corp" target="_blank" data-smartkarma-citation="entities:962:1" rel="noopener">China Steel (2002 TT)</a>, <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a> and <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a> while shorts covered on <a href="https://www.smartkarma.com/entities/cathay-financial-holding-co" target="_blank" data-smartkarma-citation="entities:17677:1" rel="noopener">Cathay Financial Holding Co (2882 TT)</a>, <a href="https://www.smartkarma.com/entities/mega-financial-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:3463:1" rel="noopener">Mega Financial Holding Co., Ltd (2886 TT)</a>, <a href="https://www.smartkarma.com/entities/china-airlines-ltd" target="_blank" data-smartkarma-citation="entities:4591:1" rel="noopener">China Airlines (2610 TT)</a>, <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a> and <a href="https://www.smartkarma.com/entities/silergy-corp" target="_blank" data-smartkarma-citation="entities:13998:1" rel="noopener">Silergy Corp (6415 TT)</a>.</div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Sunny Optical (2382 HK), China Merchants Bank H (3968 HK), Kuaishou Technology (1024 HK), Bilibili Inc (9626 HK) and China Mengniu Dairy Co (2319 HK) while there was short covering on Ping An Insurance (H) (2318 HK), Citic Securities (H) (6030 HK), Wuxi Biologics (2269 HK), HSBC Holdings (5 HK) and Haier Smart Home Co Ltd (6690 HK). Shorts increased in the Communication Services, Consumer Discretionary, Information Technology, Consumer Staples and Materials sectors, and decreased in the Financials sector.In Japan, stocks that saw the most shorts were Seven &amp; I Holdings (3382 JP), Sharp Corp (6753 JP), CyberAgent Inc (4751 JP), Keihan Holdings Co., Ltd. (9045 JP) and JFE Holdings (5411 JP) while shorts decreased on Lasertec Corp (6920 JP), BASE Inc (4477 JP), Toshiba Corp (6502 JP), Daito Trust Construct (1878 JP) and AI Inside (4488 JP). Shorts increased in the Consumer Staples and Consumer Discretionary sectors, and decreased in the Information Technology sector.In Korea, shorts increased on Samsung Electronics (005930 KS), Celltrion Inc (068270 KS), LG Display (034220 KS) and Shinpoong Pharmaceutical (019170 KS). The largest percentage increase in shorts was seen on Kcc Corp (002380 KS), Shinpoong Pharmaceutical (019170 KS), DL Co Ltd (000210 KS) and Dongkuk Steel Mill (001230 KS).In Taiwan, shorts increased on China Steel (2002 TT), Novatek Microelectronics Corp (3034 TT), TSMC (2330 TT), AU Optronics (2409 TT) and United Microelectronics Corp (2303 TT) while shorts covered on Cathay Financial Holding Co (2882 TT), Mega Financial Holding Co., Ltd (2886 TT), China Airlines (2610 TT), Pegatron Corp (4938 TT) and Silergy Corp (6415 TT).

Asia Shorts: Sunny Optic, CMB, Ping An, 7&I, Keihan, Celltrion, Shinpoong, KCC, China Steel, Novatek

Equity Bottom-Up

Chosun Ilbo, Korea's most influential newspaper with the largest circulation, wrote a report this morning about Samsung Biologics cutting a contract manufacturing deal with Moderna for COVID-19 vaccines.It is right in the front headline of Chosun Ilbo this morning. Chosun isn't usually speculative on headline news of this magnitude.<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/206/095/original/Screen+Shot+2021-05-13+at+8.16.03+PM.png?1620953230" class="editor-image img-responsive" data-smartkarma-image-id="206095"></figure></section><div class="content-caption">(Courtesy Chosun Ilbo)</div>Samsung Biologics doesn't deny the news report in a regulatory filing. It means the deal itself seems true. The filing rule requires Biologics to provide an update within a month. But from my experience, we will likely hear an acknowledgment and possibly detailed progress much earlier.<a href="https://kind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptno=20210514000064&amp;docno=&amp;viewerhost=&amp;viewerport=" target="_blank" rel="noopener">Here is the link to Samsung Biologics' regulatory filing about this news report.</a>

Chosun Ilbo, Korea's most influential newspaper with the largest circulation, wrote a report this morning about Samsung Biologics cutting a contract manufacturing deal with Moderna for COVID-19 vaccines.It is right in the front headline of Chosun Ilbo this morning. Chosun isn't usually speculative on headline news of this magnitude.(Courtesy Chosun Ilbo)Samsung Biologics doesn't deny the news report in a regulatory filing. It means the deal itself seems true. The filing rule requires Biologics to provide an update within a month. But from my experience, we will likely hear an acknowledgment and possibly detailed progress much earlier.Here is the link to Samsung Biologics' regulatory filing about this news report.

Samsung Biologics Contract Manufacturing Deal with Moderna for COVID-19 Vaccines: Key Takeaways

Hankyung, one of Korea's two most well-established economic news outlets, put out an exclusive report very early morning before the market opened that Samsung Biologics would begin to produce Pfizer's COVID-19 vaccines starting August.<a href="https://n.news.naver.com/article/015/0004544831" target="_blank" rel="noopener">Here is the link to the news report by Hankyung.</a>Then, a bit later, another prestigious newspaper, Chosun Ilbo, published a similar story saying that it had quoted an industry expert familiar with the inside of Samsung Biologics.<a href="https://biz.chosun.com/it-science/bio-science/2021/05/12/KDFVFJQLYJCNLAPQL6RUAX6YBQ/" target="_blank" rel="noopener">Here is the link to the news report by Chosun Ilbo.</a>But Samsung Biologics quickly denied the news report in an official filing before the market opened. It stated in a filing that the news report about Samsung Biologics planning to produce Pfizer COVID-19 vaccines is not true.<a href="https://engkind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptNo=20210512000039&amp;docno=&amp;formProcsCd=070&amp;language=english" target="_blank" rel="noopener">Here is the link to the filing by Samsung Biologics.</a><hr><h2>Clarifications about statements in a filing about a market rumor</h2>When we have this kind of market rumor, a company typically gives one of two statement types in a filing.<ol>
<li>
No comment to make at this time: It is generally considered an acknowledgment. If this statement is given in a filing, a company will have to update the situation within one month in another filing.
</li>
<li>
Not true at this time: It is generally considered a denial. If this statement is given in a filing, a company can not reverse it within three months. If a company gives a modified filing within three months, it will face a stiff penalty.</li>
</ol><hr>Samsung Biologics' filing was the second type. So, it was a clear denial.So, it has two possibilities:<ol>
<li>The Pfizer deal must not have materialized yet, and it will take at least three months.</li>
<li>Or, it is not true at all.</li>
</ol>Nonetheless, Samsung Biologics' share price still ended up with a 4.77% gain.Why is that? It is mainly because the local market still believes that there is some substantial CMO deal talking going on with clients other than Pfizer.It is rare for a well-established newspaper like Hankyung, the newspaper initially reported the Pfizer deal news, to put out an exclusive report like this one without any substance. Hankyung must have heard something. Just, it might have gotten the client name wrong. That is what the local street seems to believe.In fact, some names are being tossed around as potential CMO deal clients, including Moderna.<a href="http://www.financialreview.co.kr/news/articleView.html?idxno=20317" target="_blank" rel="noopener">Here is the news link of a local news outlet speculating Moderna being Samsung Biologics' new CMO client. </a>

Hankyung, one of Korea's two most well-established economic news outlets, put out an exclusive report very early morning before the market opened that Samsung Biologics would begin to produce Pfizer's COVID-19 vaccines starting August.Here is the link to the news report by Hankyung.Then, a bit later, another prestigious newspaper, Chosun Ilbo, published a similar story saying that it had quoted an industry expert familiar with the inside of Samsung Biologics.Here is the link to the news report by Chosun Ilbo.But Samsung Biologics quickly denied the news report in an official filing before the market opened. It stated in a filing that the news report about Samsung Biologics planning to produce Pfizer COVID-19 vaccines is not true.Here is the link to the filing by Samsung Biologics.Clarifications about statements in a filing about a market rumorWhen we have this kind of market rumor, a company typically gives one of two statement types in a filing.

No comment to make at this time: It is generally considered an acknowledgment. If this statement is given in a filing, a company will have to update the situation within one month in another filing.


Not true at this time: It is generally considered a denial. If this statement is given in a filing, a company can not reverse it within three months. If a company gives a modified filing within three months, it will face a stiff penalty.
Samsung Biologics' filing was the second type. So, it was a clear denial.So, it has two possibilities:
The Pfizer deal must not have materialized yet, and it will take at least three months.
Or, it is not true at all.
Nonetheless, Samsung Biologics' share price still ended up with a 4.77% gain.Why is that? It is mainly because the local market still believes that there is some substantial CMO deal talking going on with clients other than Pfizer.It is rare for a well-established newspaper like Hankyung, the newspaper initially reported the Pfizer deal news, to put out an exclusive report like this one without any substance. Hankyung must have heard something. Just, it might have gotten the client name wrong. That is what the local street seems to believe.In fact, some names are being tossed around as potential CMO deal clients, including Moderna.Here is the news link of a local news outlet speculating Moderna being Samsung Biologics' new CMO client. 

Samsung Biologics CMO Deal Noise & Samsung C&T Synthetic Subsidiary Stub Trade

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Thematic (Sector/Industry)

While March semiconductor revenues reached record levels, a price downturn appears to have begun.  This downturn seems likely to have a short duration before the market resumes its good growth for the rest of the year.

While March semiconductor revenues reached record levels, a price downturn appears to have begun.  This downturn seems likely to have a short duration before the market resumes its good growth for the rest of the year.

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (SMSN LI)

Korea Preferred Shares Disparity & Sigma, Feat. Samsung Electronics 1P & CJ Corp 4PB

This post examines the current disparity and sigma of Korea's preferred shares relative to the ordinary shares. It then looks into the two prefs...

Sanghyun Park

Asia Shorts: Sunny Optic, CMB, Ping An, 7&I, Keihan, Celltrion, Shinpoong, KCC, China Steel, Novatek

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

Samsung Biologics Contract Manufacturing Deal with Moderna for COVID-19 Vaccines: Key Takeaways

This post summarizes key takeaways on this morning's news report about Samsung Biologics cutting a manufacturing deal with Moderna for COVID-19...

Sanghyun Park

Samsung Biologics CMO Deal Noise & Samsung C&T Synthetic Subsidiary Stub Trade

This post investigates what has happened to Samsung Biologics with the CMO deal rumor yesterday and discusses Samsung C&T synthetic subsidiary stub...

Sanghyun Park

March Semiconductor Sales Up Yet Again

The SIA reported very positive semiconductor revenues for the first quarter, but leading indicators show that a correction has begun. This Insight...

Jim Handy

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