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>Juice for cash &amp; carry arbitrage doesn't seem like much. Several names in contango, but the basis widening isn't at a sufficiently arb-tradable level.</li>
<li>Reverse cash &amp; carry isn't all that attractive either, but it certainly does offer more juice, even with borrow fees. Ssangyong C&amp;E, SKT, Shinhan, and KB deserve our attention.</li>
<li>A bit uncertain is whether the pattern of "LONG Spot until ex-dividend and Conversion to Short" through cash &amp; carry will repeat itself this time.</li>
</ul>


Juice for cash &amp; carry arbitrage doesn't seem like much. Several names in contango, but the basis widening isn't at a sufficiently arb-tradable level.
Reverse cash &amp; carry isn't all that attractive either, but it certainly does offer more juice, even with borrow fees. Ssangyong C&amp;E, SKT, Shinhan, and KB deserve our attention.
A bit uncertain is whether the pattern of "LONG Spot until ex-dividend and Conversion to Short" through cash &amp; carry will repeat itself this time.


3Q Dividend Estimates of Those with SSF for Cash & Carry Arb in Korea

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On 30 August, SK Inc announced that it will buyback and cancel 200 billion won worth of common shares which represents 1.2% of SK Inc's current market cap. </li>
<li>Our SoTP valuation of SK Inc suggests an implied valuation of 325,228 won per share, suggesting 40% upside from current levels.</li>
<li>SK Inc's decision to buyback and cancel 200 billion won of common shares is a step in the right direction and the company abiding by its promises to its shareholders.</li>
</ul>


On 30 August, SK Inc announced that it will buyback and cancel 200 billion won worth of common shares which represents 1.2% of SK Inc's current market cap. 
Our SoTP valuation of SK Inc suggests an implied valuation of 325,228 won per share, suggesting 40% upside from current levels.
SK Inc's decision to buyback and cancel 200 billion won of common shares is a step in the right direction and the company abiding by its promises to its shareholders.


SK Inc's Common Shares Buyback & Cancellation of 200 Billion Won

Equity Bottom-Up

<ul>
<li>After the disappointing withdrawal of two IPOs (SK Shieldus and One Store) in 2Q 2022, shares of SK Square are starting to recover in the past seven weeks. </li>
<li>On a NAV basis, shares of SK Square are deeply undervalued. The current valuation reflects a NAV holdco discount of nearly 72.5%.</li>
<li>If we assume a moderate 50% holdco discount, this would suggest a NAV of 74,677 won per share, which would be 81% higher than current price.</li>
</ul>


After the disappointing withdrawal of two IPOs (SK Shieldus and One Store) in 2Q 2022, shares of SK Square are starting to recover in the past seven weeks. 
On a NAV basis, shares of SK Square are deeply undervalued. The current valuation reflects a NAV holdco discount of nearly 72.5%.
If we assume a moderate 50% holdco discount, this would suggest a NAV of 74,677 won per share, which would be 81% higher than current price.


SK Square: The Excessive NAV Valuation Gap Is Likely to Narrow

Equity Capital Markets

Openedges Technology / Equity Capital Markets

<ul>
<li>Open Edges Technology is getting ready to complete its IPO in Korea in September 2022. The IPO price range is from 15,000 won to 18,000 won.</li>
<li>The IPO base deal size is from US$42 million to US$50 million. The expected market cap after the IPO is from 334 billion won to 401 billion won. </li>
<li>Open Edges Technology is a system semiconductor IP specialist with one of the world's only integrated AI semiconductor design asset IP platform. </li>
</ul>


Open Edges Technology is getting ready to complete its IPO in Korea in September 2022. The IPO price range is from 15,000 won to 18,000 won.
The IPO base deal size is from US$42 million to US$50 million. The expected market cap after the IPO is from 334 billion won to 401 billion won. 
Open Edges Technology is a system semiconductor IP specialist with one of the world's only integrated AI semiconductor design asset IP platform. 


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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.

<ul>
<li>WCP aims to raise around US$690m via selling a mix of primary and secondary shares in its Korean IPO.</li>
<li>WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries</li>
<li>In this note, we talk about the recent refiling updates, peer comparison and valuations.</li>
</ul>


WCP aims to raise around US$690m via selling a mix of primary and secondary shares in its Korean IPO.
WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries
In this note, we talk about the recent refiling updates, peer comparison and valuations.


WCP IPO - Peer Comparison and Valuation - Needs a Price Cut Not a Timeline Extension

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SK Telecom (SKM US)

3Q Dividend Estimates of Those with SSF for Cash & Carry Arb in Korea

This post provides the market consensus estimates for the 3Q dividends of those with single-stock futures in Korea and looks into the cash-and...

Sanghyun Park

SK Inc's Common Shares Buyback & Cancellation of 200 Billion Won

SK Inc's decision to buyback and cancel 200 billion won of common shares is a step in the right direction and the company abiding by its promises...

Douglas Kim

SK Square: The Excessive NAV Valuation Gap Is Likely to Narrow

On a NAV basis, shares of SK Square are deeply undervalued. If we assume a moderate 50% holdco discount, this would suggest a NAV of 74,677 won per...

Douglas Kim

Open Edges Technology IPO Preview

Open Edges Technology is a system semiconductor IP specialist with one of the world's only integrated AI semiconductor design asset IP platform....

Douglas Kim

WCP IPO - Peer Comparison and Valuation - Needs a Price Cut Not a Timeline Extension

WCP aims to raise around US$690m via selling a mix of primary and secondary shares in its Korean IPO. In this note we talk about the refiling...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)