Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Korea Exchange (KRX) plans to make special changes to the Korea Value-Up Index constituents on 20 December.</li>
<li>We believe that following five stocks are likely inclusions in the Korea Value Up index rebalance on 20 December (KB Financial, Hana Financial, SK Telecom, KT Corp, and LG Electronics).</li>
<li>The new companies that will be included in the Korea Value-Up Index include companies that provide detailed corporate value up plans by 6 December.</li>
</ul>


Korea Exchange (KRX) plans to make special changes to the Korea Value-Up Index constituents on 20 December.
We believe that following five stocks are likely inclusions in the Korea Value Up index rebalance on 20 December (KB Financial, Hana Financial, SK Telecom, KT Corp, and LG Electronics).
The new companies that will be included in the Korea Value-Up Index include companies that provide detailed corporate value up plans by 6 December.


Korea Value Up Index Rebalance on 20 December

<ul>
<li>SK Telecom (017670 KS) announced through a value-up disclosure that it will return more than 50% of its net profit to shareholders from 2024 to 2026.</li>
<li>SK Telecom also mentioned that it plans to achieve ROE of 10% or more by 2026.</li>
<li>The company is now targeting 30 trillion won in revenue by 2030 with about 35% of total revenue coming from the AI business.</li>
</ul>


SK Telecom (017670 KS) announced through a value-up disclosure that it will return more than 50% of its net profit to shareholders from 2024 to 2026.
SK Telecom also mentioned that it plans to achieve ROE of 10% or more by 2026.
The company is now targeting 30 trillion won in revenue by 2030 with about 35% of total revenue coming from the AI business.


SK Telecom: Meaningful Value Up Announcement

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 KODEX KOREA Value-Up ETF / Event-Driven

<ul>
<li>They ditched the rulebook, used a market cap filter to pick the top 5, and watered down PBR and ROE, making them irrelevant. Market cap was the real deciding factor.</li>
<li>KRX hasn't confirmed it, but local sources say the special rebalancing was based on the top 50 KOSPI market caps as of the December 13th close.</li>
<li>The shift was driven by local pension funds, especially NPS, which pushed for more big-cap exposure to trigger Value-Up investments, signaling a potential ramp-up in their involvement.</li>
</ul>


They ditched the rulebook, used a market cap filter to pick the top 5, and watered down PBR and ROE, making them irrelevant. Market cap was the real deciding factor.
KRX hasn't confirmed it, but local sources say the special rebalancing was based on the top 50 KOSPI market caps as of the December 13th close.
The shift was driven by local pension funds, especially NPS, which pushed for more big-cap exposure to trigger Value-Up investments, signaling a potential ramp-up in their involvement.


Behind the Scenes of KRX Value-Up Index Special Rebalancing: What It Means for Flow Dynamics

<ul>
<li>Amid recent market turmoil, we believe that SK Telecom could be a solid blue-chip, defensive Korean stock that could outperform the market in the next 6-12 months.</li>
<li>SK Telecom reported better than expected profits in 2Q 2024. The company's sales were 0.5% higher than the consensus and its operating profit was 3.9% higher than the consensus estimates.</li>
<li>SK Telecom's shareholder return policy is to return at least 50% of adjusted profit for the year on a consolidated basis.</li>
</ul>


Amid recent market turmoil, we believe that SK Telecom could be a solid blue-chip, defensive Korean stock that could outperform the market in the next 6-12 months.
SK Telecom reported better than expected profits in 2Q 2024. The company's sales were 0.5% higher than the consensus and its operating profit was 3.9% higher than the consensus estimates.
SK Telecom's shareholder return policy is to return at least 50% of adjusted profit for the year on a consolidated basis.


SK Telecom: A Blue-Chip Defensive Stock That Could Outperform KOSPI Amid Market Turmoil

<ul>
<li>On 12 June, SK Telecom (017670 KS) confirmed that its affiliate Sapeon plans to merge with its competitor Rebellions by end of this year.</li>
<li>Sapeon and Rebellions' largest global competitor is Nvidia. A key aim of the merger is to challenge Nvidia and try to take away its global dominance in AI chips.</li>
<li>If the combined Sapeon and Rebellion can take away just 1% market share resulting in 1% of Nvidia's market cap, this would suggest valuation of US$31 billion.</li>
</ul>


On 12 June, SK Telecom (017670 KS) confirmed that its affiliate Sapeon plans to merge with its competitor Rebellions by end of this year.
Sapeon and Rebellions' largest global competitor is Nvidia. A key aim of the merger is to challenge Nvidia and try to take away its global dominance in AI chips.
If the combined Sapeon and Rebellion can take away just 1% market share resulting in 1% of Nvidia's market cap, this would suggest valuation of US$31 billion.


Proposed Merger Between Rebellions and Sapeon - To Challenge Nvidia

South Korea

SK Telecom Co., Ltd. is a Korean mobile and telecommunications operator. The Company provides cellular voice, wireless data, and wireless internet services. SK Telecom also offers fixed line services and platform services.

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SK Telecom (017670 KS)

Korea Value Up Index Rebalance on 20 December

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SK Telecom: Meaningful Value Up Announcement

SK Telecom (017670 KS) announced through a value-up disclosure that it will return more than 50% of its net profit to shareholders from 2024 to 2026.

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Behind the Scenes of KRX Value-Up Index Special Rebalancing: What It Means for Flow Dynamics

This post provides the inside scoop on the KRX Value-Up Index special rebalancing and its implications for flow dynamics.

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Amid recent market turmoil, SK Telecom could be a solid blue-chip, defensive Korean stock that could outperform the market. SK Telecom reported...

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Proposed Merger Between Rebellions and Sapeon - To Challenge Nvidia

On 12 June, SK Telecom confirmed that its affiliate Sapeon plans to merge with Rebellions by end of this year. A key aim of the merger is to take...

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