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>The KOSPI 200 June Review will have a total of 13 float rate changes: 11 increases and 2 reductions.</li>
<li>
<a href="https://www.smartkarma.com/entities/kakaobank-corp" target="_blank" data-smartkarma-citation="entities:33501:1" rel="noopener">Kakao Bank (323410)</a> will experience the biggest change, followed by <a href="https://www.smartkarma.com/entities/hmm-co-ltd" target="_blank" data-smartkarma-citation="entities:13494:1" rel="noopener">HMM (011200)</a> and <a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (259960)</a>. The float rate of <a href="https://www.smartkarma.com/entities/hdc-hyundai-development-co-engineering-construction" target="_blank" data-smartkarma-citation="entities:27397:1" rel="noopener">HDC Hyundai Development (294870)</a> and <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670)</a> will decrease.</li>
<li>
Kakao Bank and <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300)</a> have the most significant passive impact. And <a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550)</a>, <a href="https://www.smartkarma.com/entities/woori-financial-group-inc" target="_blank" data-smartkarma-citation="entities:27995:1" rel="noopener">Woori Financial Group (316140)</a>, and <a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (259960)</a> are also worth noting.</li>
</ul>


The KOSPI 200 June Review will have a total of 13 float rate changes: 11 increases and 2 reductions.

Kakao Bank (323410) will experience the biggest change, followed by HMM (011200) and  Krafton Inc (259960). The float rate of HDC Hyundai Development (294870) and Doosan Infracore (042670) will decrease.

Kakao Bank and Kakao Pay (377300) have the most significant passive impact. And LG Corp (003550), Woori Financial Group (316140), and  Krafton Inc (259960) are also worth noting.


KOSPI 200 Constituents with a Float Rate Change: 11 Increases & 2 Reductions

<ul>
<li>Nine constituents will likely face an increase in the float rate: five stocks for the sale of the majority shareholder's shares and four names for the IPO lockup release.</li>
<li>Kakao Bank (6.35x), LG Corp (003550 KS) (2.62x), Krafton (2.09x), and Woori Financial Group (316140 KS) (1.74x) are expected to have the most significant impact.</li>
<li>In general, float rate changes show price movement by passive flow similar to new changes (adds/deletes). So, we need to consider gradually building up positions two months before the rebalancing.</li>
</ul>


Nine constituents will likely face an increase in the float rate: five stocks for the sale of the majority shareholder's shares and four names for the IPO lockup release.
Kakao Bank (6.35x), LG Corp (003550 KS) (2.62x), Krafton (2.09x), and Woori Financial Group (316140 KS) (1.74x) are expected to have the most significant impact.
In general, float rate changes show price movement by passive flow similar to new changes (adds/deletes). So, we need to consider gradually building up positions two months before the rebalancing.


KOSPI 200 Index Rebalancing: Constituents Subject to Float Rate Increase

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.

Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>
<a href="https://www.smartkarma.com/entities/huitongda" target="_blank" data-smartkarma-citation="entities:33789:1" rel="noopener">Huitongda (9878 HK)</a> and <a href="https://www.smartkarma.com/entities/lepu-biopharma-co-ltd" target="_blank" data-smartkarma-citation="entities:33231:1" rel="noopener">Lepu Biopharma (LBP HK)</a> got the HK ECM market going post CNY.</li>
<li>There were no major placements this week apart from a few blocks in Korea and India.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Huitongda (9878 HK) and Lepu Biopharma (LBP HK) got the HK ECM market going post CNY.
There were no major placements this week apart from a few blocks in Korea and India.


ECM Weekly (13th Feb 2022) -Krafton, Huitongda, GogoX, Lepu, Adani Wilmar, Vedant, Mitsubishi Estate

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>Foreigners net purchased 2.6 trillion won worth of five major Korean bank stocks from 8/26/2021 to 2/11/2022. Foreigners were net buyers of 1.8 trillion won worth of KOSPI stocks.</li>
<li>This means that foreigners were net sellers of 0.8 trillion won worth of other KOSPI stocks (excluding the five major banking stocks). </li>
<li>The five major bank stocks in Korea currently have average dividend yield of 5.4%. DPS for the five major Korean banks increased by 70.9% YoY on average in 2021.</li>
</ul>


Foreigners net purchased 2.6 trillion won worth of five major Korean bank stocks from 8/26/2021 to 2/11/2022. Foreigners were net buyers of 1.8 trillion won worth of KOSPI stocks.
This means that foreigners were net sellers of 0.8 trillion won worth of other KOSPI stocks (excluding the five major banking stocks). 
The five major bank stocks in Korea currently have average dividend yield of 5.4%. DPS for the five major Korean banks increased by 70.9% YoY on average in 2021.


Shinhan Financial Group: Chairman Buys Shares, Capital Flows Analysis, & Higher Dividends Likely

Cross Asset Strategy

<ul>
<li>In this insight, we provide an evidenced based analysis of Bank of Korea (BOK) base interest rate changes and Korean banks' share price performances from August 2008 to February 2022.</li>
<li>Specifically, we compare the average share price performances of five major banking groups in Korea (KB, Shinhan, Hana, Woori, and Woori) versus KOSPI in six different time periods.</li>
<li>The major Korean banking groups generally outperformed the market in periods of rising interest rates and underperformed the market in periods of falling interest rates.</li>
</ul>


In this insight, we provide an evidenced based analysis of Bank of Korea (BOK) base interest rate changes and Korean banks' share price performances from August 2008 to February 2022.
Specifically, we compare the average share price performances of five major banking groups in Korea (KB, Shinhan, Hana, Woori, and Woori) versus KOSPI in six different time periods.
The major Korean banking groups generally outperformed the market in periods of rising interest rates and underperformed the market in periods of falling interest rates.


Evidenced Based Analysis of BOK Base Interest Rate Changes & Korean Banks' Share Price Performances

South Korea

Woori Financial Group Inc. provides commercial banking services. The Company offers deposit services, loan services, bill services, settlement services, credit card, international, online banking, and other related services. Woori Financial Group also operates banking and retail banking businesses.

Price Gauge
52-week Range	0.00 - 0.00
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Woori Financial Group (316140 KS)

KOSPI 200 Constituents with a Float Rate Change: 11 Increases & 2 Reductions

This post summarizes all the KOSPI 200 constituents, which will likely change their respective float rate in the June Review.

Sanghyun Park

KOSPI 200 Index Rebalancing: Constituents Subject to Float Rate Increase

This post investigates those among the KOSPI 200 constituents, which will face an increase in the float rate, thereby attracting a meaningful level...

Sanghyun Park

ECM Weekly (13th Feb 2022) -Krafton, Huitongda, GogoX, Lepu, Adani Wilmar, Vedant, Mitsubishi Estate

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Shinhan Financial Group: Chairman Buys Shares, Capital Flows Analysis, & Higher Dividends Likely

Foreigners net purchased 2.6 trillion won worth of five major Korean bank stocks from 8/26/2021 to 2/11/2022. Foreigners were net buyers of 1.8...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KOSPI 200 Constituents with a Float Rate Change: 11 Increases & 2 Reductions

This post summarizes all the KOSPI 200 constituents, which will likely change their respective float rate in the June Review.

Sanghyun Park

KOSPI 200 Index Rebalancing: Constituents Subject to Float Rate Increase

This post investigates those among the KOSPI 200 constituents, which will face an increase in the float rate, thereby attracting a meaningful level...

Sanghyun Park

ECM Weekly (13th Feb 2022) -Krafton, Huitongda, GogoX, Lepu, Adani Wilmar, Vedant, Mitsubishi Estate

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Shinhan Financial Group: Chairman Buys Shares, Capital Flows Analysis, & Higher Dividends Likely

Foreigners net purchased 2.6 trillion won worth of five major Korean bank stocks from 8/26/2021 to 2/11/2022. Foreigners were net buyers of 1.8...

Douglas Kim

Evidenced Based Analysis of BOK Base Interest Rate Changes & Korean Banks' Share Price Performances

In this insight, we provide an evidenced based analysis of Bank of Korea (BOK) base interest rate changes and Korean banks' share price...

Douglas Kim