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>There are 71 interim dividend stocks on KOSPI and KOSDAQ. Of these, 9 stocks pay quarterly dividends: 7 KOSPI and 2 KOSDAQ.</li>
<li>All except POSCO and Shinhan Financial employ an equal quarterly split. As expected, SKT offers the highest quarterly dividend yield. At the last closing price, it is 1.55%.</li>
<li>Since the absolute yield level is tight, it may not be appropriate to consider a dividend arb play, except for SKT. Nevertheless, it may act as short-term price momentum.</li>
</ul>


There are 71 interim dividend stocks on KOSPI and KOSDAQ. Of these, 9 stocks pay quarterly dividends: 7 KOSPI and 2 KOSDAQ.
All except POSCO and Shinhan Financial employ an equal quarterly split. As expected, SKT offers the highest quarterly dividend yield. At the last closing price, it is 1.55%.
Since the absolute yield level is tight, it may not be appropriate to consider a dividend arb play, except for SKT. Nevertheless, it may act as short-term price momentum.


KOSPI/KOSDAQ Quarterly Dividend Stocks: DPS & Yield Estimations

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On 15 February, KT Corp (030200 KS) announced that it will spin off the cloud and IDC business. </li>
<li>KT will spin off the cloud and internet data center (IDC) business to set up subsidiary tentatively named KT Cloud starting 1 April.</li>
<li>KT's valuations remain attractive and the spin-off of KT Cloud Business is also likely to aid on the continued outperformance of KT shares in the coming months. </li>
</ul>


On 15 February, KT Corp (030200 KS) announced that it will spin off the cloud and IDC business. 
KT will spin off the cloud and internet data center (IDC) business to set up subsidiary tentatively named KT Cloud starting 1 April.
KT's valuations remain attractive and the spin-off of KT Cloud Business is also likely to aid on the continued outperformance of KT shares in the coming months. 


KT Corp: Announces a Spin-Off of the Cloud and IDC Business

Equity Bottom-Up

<ul>
<li>KT Corp (030200 KS) is expected to have a solid, near 6% dividend yield in 2022.</li>
<li>KT's partnership with Shinhan Bank is a strategy to accelerate KT's transformation in the digital business.</li>
<li>KT is currently trading at 0.5x P/B, which is at a steep discount to its liquidation value.</li>
</ul>


KT Corp (030200 KS) is expected to have a solid, near 6% dividend yield in 2022.
KT's partnership with Shinhan Bank is a strategy to accelerate KT's transformation in the digital business.
KT is currently trading at 0.5x P/B, which is at a steep discount to its liquidation value.


KT Corp: Near 6% Dividend Yield, Stock Swap with Shinhan Bank, IPO of K-Bank, & Shift to Value

<ul>
<li>Until mid-January each year, local brokerages sell blue-chip stocks as they most aggressively engage in yearend dividend arb plays. They are repeatedly busy closing the arb positions until mid-January.</li>
<li>Local pensions' selling SKT can be interpreted as a preemptive portfolio cleaning to include LG Energy. Compared to other local institutions, pensions often become the first to do cleaning trading.</li>
<li>As we are past mid-January, the position closing for the yearend arb play should have been over. So entering SKT now doesn't seem like a bad idea.</li>
</ul>


Until mid-January each year, local brokerages sell blue-chip stocks as they most aggressively engage in yearend dividend arb plays. They are repeatedly busy closing the arb positions until mid-January.
Local pensions' selling SKT can be interpreted as a preemptive portfolio cleaning to include LG Energy. Compared to other local institutions, pensions often become the first to do cleaning trading.
As we are past mid-January, the position closing for the yearend arb play should have been over. So entering SKT now doesn't seem like a bad idea.


SK Telecom at a 6+% Dividend Yield: Entry Timing Analysis

<ul>
<li>After the market close today, SK Square announced a block deal worth 400 billion won involving 6.078 million shares. The block deal sale accounts for 4.3% of outstanding shares.</li>
<li>The block deal price is expected to be completed between 62,100 won and 66,000 won (discount of 5.9% to 0.0%).</li>
<li>We would take the deal and we continue to have a positive view of SK Square. Our valuation suggests an implied price of 86,388 won. </li>
</ul>


After the market close today, SK Square announced a block deal worth 400 billion won involving 6.078 million shares. The block deal sale accounts for 4.3% of outstanding shares.
The block deal price is expected to be completed between 62,100 won and 66,000 won (discount of 5.9% to 0.0%).
We would take the deal and we continue to have a positive view of SK Square. Our valuation suggests an implied price of 86,388 won. 


SK Square - Announces a Block Deal Sale of About 400 Billion Won

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)

KOSPI/KOSDAQ Quarterly Dividend Stocks: DPS & Yield Estimations

This post lists all 71 interim dividend stocks, of which 9 are quarterly dividend stocks. It then estimates DPS and dividend yield of these 9...

Sanghyun Park

KT Corp: Announces a Spin-Off of the Cloud and IDC Business

KT announced that it will spin off the cloud and IDC business which is likely to aid on the continued outperformance of KT shares in the coming...

Douglas Kim

KT Corp: Near 6% Dividend Yield, Stock Swap with Shinhan Bank, IPO of K-Bank, & Shift to Value

We discuss major catalysts/investment highlights of KT including near 6% dividend yield, recent stock swap with Shinhan Bank, shift to value,...

Douglas Kim

SK Telecom at a 6+% Dividend Yield: Entry Timing Analysis

SK Telecom is now at a 6+% dividend yield, which is, of course, astounding for a leading telco in a developed market. This post examines what drove...

Sanghyun Park

SK Square - Announces a Block Deal Sale of About 400 Billion Won

After the market close today, SK Square announced a block deal worth 400 billion won involving 6.078 million shares. The block deal sale accounts...

Douglas Kim

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