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>Local institutions, notably pension funds, are increasingly investing in Samsung SDS, coinciding with the company's more active investor engagement. This has sparked speculation about Samsung's strategic motives.</li>
<li>Timing-Wise, as AI infra demands rise in Samsung Group, conditions for boosting SDS's performance improve. They monitor Samsung's moves to drive SDS's stock upward, considering its reliance on Samsung's revenue.</li>
<li>Local pension funds actively adopting overweight positions in Samsung SDS underscore the importance of crafting strategies tailored to overweighting SDS within the broader Samsung Group context.</li>
</ul>


Local institutions, notably pension funds, are increasingly investing in Samsung SDS, coinciding with the company's more active investor engagement. This has sparked speculation about Samsung's strategic motives.
Timing-Wise, as AI infra demands rise in Samsung Group, conditions for boosting SDS's performance improve. They monitor Samsung's moves to drive SDS's stock upward, considering its reliance on Samsung's revenue.
Local pension funds actively adopting overweight positions in Samsung SDS underscore the importance of crafting strategies tailored to overweighting SDS within the broader Samsung Group context.


Local Institutional Flows Towards Overweighting Samsung SDS in Samsung Group Context

<ul>
<li>Considering year-end dividends, it appears likely that the trading timing might extend beyond this year. In the previous case, the trade execution timing was one month before the contract expired.</li>
<li>Short selling is prohibited. However, all four companies offer single-stock futures, which provide instruments for proactive positioning. Nevertheless, aspects to consider are likely to increase regarding trading convenience and liquidity.</li>
<li>The potential for inadequate liquidity might increase the discounts for these deals, potentially offering us fresh trading opportunities. We should proactively prepare trading setups that consider these contextual conditions.</li>
</ul>


Considering year-end dividends, it appears likely that the trading timing might extend beyond this year. In the previous case, the trade execution timing was one month before the contract expired.
Short selling is prohibited. However, all four companies offer single-stock futures, which provide instruments for proactive positioning. Nevertheless, aspects to consider are likely to increase regarding trading convenience and liquidity.
The potential for inadequate liquidity might increase the discounts for these deals, potentially offering us fresh trading opportunities. We should proactively prepare trading setups that consider these contextual conditions.


Samsung Founder Family's Pre-Announced Block Deals: Contract Terms & Fresh Contextual Conditions

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

Doosan Robotics  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/doosan-robotics" target="_blank" data-smartkarma-citation="entities:36816:1" rel="noopener">Doosan Robotics (DOOSANROBO KS)</a> is looking to raise up to US$314m in its Korean IPO. </li>
<li>Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module. </li>
<li>In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.</li>
</ul>



Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO. 
Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module. 
In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.


Doosan Robotics IPO - Thoughts on Valuation - A Punt at Best, a Crash at Worst

<ul>
<li>Maximizing Lee Jae-yong's dividend income is crucial, making Samsung SDS's ₩5.5T cash assets key, thus prompting the merger of Samsung C&amp;T and Samsung SDS's BPO division.</li>
<li>With no legal risks for Lee Jae-yong, Samsung C&amp;T needs the merger to increase assets and avoid forced holding company conversion, making the acquisition of Samsung SDS’s BPO division necessary.</li>
<li>We should target a setup for likely appraisal rights for C&amp;T. Monitor and capture the spread between the stock price and appraisal rights exercise price.</li>
</ul>


Maximizing Lee Jae-yong's dividend income is crucial, making Samsung SDS's ₩5.5T cash assets key, thus prompting the merger of Samsung C&amp;T and Samsung SDS's BPO division.
With no legal risks for Lee Jae-yong, Samsung C&amp;T needs the merger to increase assets and avoid forced holding company conversion, making the acquisition of Samsung SDS’s BPO division necessary.
We should target a setup for likely appraisal rights for C&amp;T. Monitor and capture the spread between the stock price and appraisal rights exercise price.


Examining Market Interest in the Potential Samsung C&T and SDS Restructuring

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sanil-electric-co-ltd" target="_blank" data-smartkarma-citation="entities:43687:1" rel="noopener">Sanil Electric (062040 KS)</a> is looking to raise up to US$165m in its Korean IPO.</li>
<li>Sanil Electric is a specialized company that manufactures and sells reactors, transformers, railway vehicle parts, and switchboards. As an industrial transformer manufacturer, the company mainly manufactures power and distribution transformers.</li>
<li>In our previous notes, we talked about the company’s historical performance. In this note, we undertake a quick peer comparison and share our thoughts on valuation.</li>
</ul>



Sanil Electric (062040 KS) is looking to raise up to US$165m in its Korean IPO.
Sanil Electric is a specialized company that manufactures and sells reactors, transformers, railway vehicle parts, and switchboards. As an industrial transformer manufacturer, the company mainly manufactures power and distribution transformers.
In our previous notes, we talked about the company’s historical performance. In this note, we undertake a quick peer comparison and share our thoughts on valuation.


Sanil Electric IPO - Stars Aligned with High Growth and Strong Sentiment

South Korea

Samsung SDS Co., Ltd. provides information technology services, such as consulting and technical services. The Company also offers outsourcing services including application outsourcing, IT infrastructure outsourcing, and cloud computing.

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52-week Range	0.00 - 0.00
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Samsung Sds (018260 KS)

Local Institutional Flows Towards Overweighting Samsung SDS in Samsung Group Context

This post offers observations into local institutional flows favoring overweighting Samsung SDS within the broader Samsung Group context.

Sanghyun Park

Samsung Founder Family's Pre-Announced Block Deals: Contract Terms & Fresh Contextual Conditions

This post outlines the contract terms of the pre-announced block deals of the Samsung founder family and examines the new contextual conditions...

Sanghyun Park

Doosan Robotics IPO - Thoughts on Valuation - A Punt at Best, a Crash at Worst

Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO. comparison. In this note, we talk about valuation.

Ethan Aw

Examining Market Interest in the Potential Samsung C&T and SDS Restructuring

This post examines the growing market interest and trading angles in the potential restructuring involving Samsung C&T and Samsung SDS.

Sanghyun Park

Sanil Electric IPO - Stars Aligned with High Growth and Strong Sentiment

Sanil Electric (062040 KS) is looking to raise up to US$165m in its Korean IPO. In this note, we undertake a quick peer comparison and share our...

Ethan Aw

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)