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>Most loans with collateral floors are at or below thresholds, and all three court deposits are near or under a 30% drop from their initial valuation.</li>
<li>No solid intel on share sales yet, and it's unlikely they’ll sell Samsung Electronics after a 30% dip. They may focus on their stakes in Samsung Life or Samsung SDS.</li>
<li>There's talk Samsung might boost prices to help the family avoid the collateral floor issue, but with DRAM demand down, a major shareholder return seems unlikely for now.</li>
</ul>


Most loans with collateral floors are at or below thresholds, and all three court deposits are near or under a 30% drop from their initial valuation.
No solid intel on share sales yet, and it's unlikely they’ll sell Samsung Electronics after a 30% dip. They may focus on their stakes in Samsung Life or Samsung SDS.
There's talk Samsung might boost prices to help the family avoid the collateral floor issue, but with DRAM demand down, a major shareholder return seems unlikely for now.


Situation Flagged: Sammy Stock Hits Level that Squeezes Family’s Loan Collateral Floor

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Three major reasons why Samsung Electronics is our 2025 high conviction pick include attractive valuations, reduced concerns about inheritance tax overhang, and higher likely total shareholder returns.</li>
<li>Given that 2025 will be the last year of major inheritance tax payment for the Lee family, this reduced overhang could act as a positive sentiment on Samsung Electronics.</li>
<li>Pressures on Samsung to announce material improvement to shareholder returns are coming not just from existing shareholders but also from the Korean government due to Korea Corporate Value Up program.</li>
</ul>


Three major reasons why Samsung Electronics is our 2025 high conviction pick include attractive valuations, reduced concerns about inheritance tax overhang, and higher likely total shareholder returns.
Given that 2025 will be the last year of major inheritance tax payment for the Lee family, this reduced overhang could act as a positive sentiment on Samsung Electronics.
Pressures on Samsung to announce material improvement to shareholder returns are coming not just from existing shareholders but also from the Korean government due to Korea Corporate Value Up program.


2025 High Conviction: Samsung Electronics

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>China overtakes Japan in auto exports despite tariff hurdles, solidifying its dominance in the industry.</li><li>Samsung Display moves up 8.6G IT OLED mass production plan to 2025, aiming for quicker industry advancements.</li><li>Nvidia's Jensen Huang requests early HBM4 delivery from SK Hynix, signaling potential developments in the tech sector.</li></ul>

China overtakes Japan in auto exports despite tariff hurdles, solidifying its dominance in the industry.Samsung Display moves up 8.6G IT OLED mass production plan to 2025, aiming for quicker industry advancements.Nvidia's Jensen Huang requests early HBM4 delivery from SK Hynix, signaling potential developments in the tech sector.

Tech Supply Chain Tracker (06-Nov-2024): China leads in auto exports over Japan despite tariffs.

<ul>
<li>We're starting to see some local market players getting ready and setting up trades that bet on a potential split for Samsung Electronics.</li>
<li>Samsung could leverage the buzz around spinning off its foundry business to split key units—foundry, memory chips, and others—into two or three separate companies at the shareholder meeting.</li>
<li>Additionally, the valuation gap between Samsung Electronics and Biologics has narrowed more than it has in the last decade, making it an even more attractive opportunity.</li>
</ul>


We're starting to see some local market players getting ready and setting up trades that bet on a potential split for Samsung Electronics.
Samsung could leverage the buzz around spinning off its foundry business to split key units—foundry, memory chips, and others—into two or three separate companies at the shareholder meeting.
Additionally, the valuation gap between Samsung Electronics and Biologics has narrowed more than it has in the last decade, making it an even more attractive opportunity.


Surging Buzz Around the Potential Split of Samsung Electronics

External broker reports(aggregated public sources), Daishin Securities

Daishin Securities

External broker reports(aggregated public sources)

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<ul><li>Samsung Electronics reportedly posted OP of W9.1tn for 3Q24, below the market consensus of W10.7tn</li><li>One-time costs (e.g. bonus paid to DS business) and continued losses in the LSI/Foundry segment blamed</li><li>HBM3E supply to major clients and the expansion of server DRAM supply to be key going forward</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Samsung Electronics reportedly posted OP of W9.1tn for 3Q24, below the market consensus of W10.7tnOne-time costs (e.g. bonus paid to DS business) and continued losses in the LSI/Foundry segment blamedHBM3E supply to major clients and the expansion of server DRAM supply to be key going forwardContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Samsung Electronics - 3Q24: One-Time Costs and Foundry’s Continued Losses

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.

Samsung Electronics Pref Shares (005935 KS)

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Samsung Electronics Pref Shares (005935 KS)

Situation Flagged: Sammy Stock Hits Level that Squeezes Family’s Loan Collateral Floor

Samsung Electronics hits a level squeezing the Samsung family’s stock-backed loan collateral floor, tied to their inheritance tax—definitely a key...

Sanghyun Park

2025 High Conviction: Samsung Electronics

Three reasons why Samsung Electronics is our 2025 high conviction pick include attractive valuations, reduced concerns about inheritance tax...

Douglas Kim

Tech Supply Chain Tracker (06-Nov-2024): China leads in auto exports over Japan despite tariffs.

China leads global auto exports while Samsung accelerates OLED production, Nvidia pushes for early delivery, Trump hints at CHIPS Act shutdown,...

Tech Supply Chain Tracker

Surging Buzz Around the Potential Split of Samsung Electronics

This post dives into the potential split of Samsung Electronics, one of the hot topics currently heating up Korea's stock market.

Sanghyun Park

Samsung Electronics - 3Q24: One-Time Costs and Foundry’s Continued Losses

Samsung Electronics (SEC) guided 3Q24 preliminary revenue at W79.0tn (+7% qoq) and OP at W9.1tn (-13% qoq). OP was far below our estimate of W10.1tn

Daishin Securities

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