Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Just over a quarter of the way through the review period, we see six changes for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> at the December rebalance.</li>
<li>There are a few stocks that are close adds at the current time and a move higher can take them into inclusion zone leading to more deletions.</li>
<li>While there is little to no short interest on the potential inclusions, short interest on the potential deletions ranges from 4.3-12.2 days of ADV and 0.5-3.5% of free float.</li>
</ul>


Just over a quarter of the way through the review period, we see six changes for the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) at the December rebalance.
There are a few stocks that are close adds at the current time and a move higher can take them into inclusion zone leading to more deletions.
While there is little to no short interest on the potential inclusions, short interest on the potential deletions ranges from 4.3-12.2 days of ADV and 0.5-3.5% of free float.


KOSPI200 Index Rebalance Preview: A Busy December Rebalance

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.</li>
<li>Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.</li>
<li>We highlight 38 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.
Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.
We highlight 38 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2023

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023.</li>
<li>Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.</li>
<li>We highlight 33 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023.
Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.
We highlight 33 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023

<ul>
<li>In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage.</li>
<li>In general, more holdcos/quasi-holdcos have been outperforming the opcos in the past year, as compared to the previous years as more investors seek value-oriented, deep NAV discount stocks.</li>
<li>We highlight 26 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage.
In general, more holdcos/quasi-holdcos have been outperforming the opcos in the past year, as compared to the previous years as more investors seek value-oriented, deep NAV discount stocks.
We highlight 26 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Spreads Opportunities Amid Market Carnage

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.

I added 3 more single subsidiary holding companies: Doosan Corp, Hwaseung Industries, and Hanil Holdings. I now track a total of 18 local holding companies for a single subsidiary stub trade.Out of these 18 names, 6 holding companies are currently below -0.5σ on a 20-day moving average. Hanil Holdings, one of the three newbies, is in the harshest diversion at -1.44σ relative to its subsidiary, Hanil Cement. Younghone Holdings and Green Cross Holdings follow at -0.99σ and -0.86σ, respectively.







Holdco
Subsidiary
Sigma (σ) on a 20-day moving average


Amorepacific Group
Amorepacific Corp
-0.69


BGF Co Ltd
BGF Retail Co Ltd
-0.84


Halla Holdings Corp
Mando Corp
1.35


Hanjin Kal
Korean Air Lines Co Ltd
1.18


Hankook &amp; Company Co Ltd
Hankook Tire &amp; Technology Co Ltd
1.46


HANSAE YES24 HOLDINGS CO., LTD.
Hansae Co., Ltd.
-0.23


HDC Holdings Co Ltd
HDC Hyundai Development Co
0.92


Nexen Corporation
Nexen Tire Corp
2.33


Nongshim Holdings Co Ltd
Nongshim Co Ltd
0.44


ORION Holdings Corp
Orion Corp
-0.49


Poongsan Holdings Corporation
POONGSAN CORPORATION
0.18


Youngone Holdings Co Ltd
Youngone Corporation
-0.99


Green Cross Holdings
Green Cross Corp
-0.86


Hitejinro Holdings Co Ltd
HiteJinro Co Ltd
0.29


Seah Holdings Corp
Seah Besteel Corporation
-1.45


* Doosan Corp
* Doosan Heavy Industries Constrctn Co Ltd
0.63


* HWASEUNG Industries Co Ltd
* Hwaseung Enterprise Co Ltd
-0.81


* Hanil Holdings Co Ltd
* Hanil Cement Co Ltd
-1.44

Source: KRX

Starting with this insight, I made some changes in my calculation of NAV. I estimated each holding company's operating operation based on their latest de-consolidated operating profit. It is mostly brand royalty and office rental income. I used operating profit to exclude dividend income.So, here is the revised NAV discount of each holding company in my monitoring list. Seah Holdings and Halla Holdings have the highest discount to the NAV at 76.65% and 73.29%, respectively. In contrast, Hanjin Kal continues to trade at a premium (11.75%) to the NAV. Amorepacific Group and Hankook &amp; Co are also trading at a relatively low discount to the NAV. 








Discount &amp; weight
NAV discount
Single subsidiary weight in NAV
Single subsidiary weight in GAV


Amorepacific Group
20.18%
88.64%
88.53%


BGF Co Ltd
65.06%
59.17%
67.74%


Halla Holdings Corp
73.29%
53.98%
41.33%


Hanjin Kal
-11.75%
79.03%
79.81%


Hankook &amp; Company Co Ltd
26.04%
75.52%
81.38%


HANSAE YES24 HOLDINGS CO., LTD.
49.69%
58.92%
53.06%


HDC Holdings Co Ltd
50.47%
49.76%
44.85%


Nexen Corporation
62.60%
48.57%
48.66%


Nongshim Holdings Co Ltd
65.63%
60.30%
60.68%


ORION Holdings Corp
50.42%
89.56%
81.83%


Poongsan Holdings Corporation
53.62%
77.10%
81.20%


Youngone Holdings Co Ltd
60.75%
70.04%
74.12%


Green Cross Holdings
65.62%
121.52%
74.74%


Hitejinro Holdings Co Ltd
32.92%
86.35%
71.58%


Seah Holdings Corp
76.65%
40.07%
37.64%


* Doosan Corp
71.00%
70.92%
50.32%


* HWASEUNG Industries Co Ltd
59.62%
78.05%
72.68%


* Hanil Holdings Co Ltd
53.40%
77.85%
67.20%

Source: KRX



Korea Single Subsidiary Stub Trade: 18 in Total with 3 New Ones

South Korea

Youngone Holdings Company, Ltd. manufactures, markets, and exports a line of sports wear on an original equipment manufacturing (OEM) basis. The Company's products include clothes for skiing, mountain climbing, and other sports activities. Youngone Holdings also produces sports accessories, such as gloves, backpacks, and sleeping bags.

Price Gauge
52-week Range	0.00 - 0.00
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Youngone Holdings (009970 KS)

KOSPI200 Index Rebalance Preview: A Busy December Rebalance

We currently see 6 changes for the KOSPI200 in December. The potential adds (mostly Materials) have been running up while the potential deletes...

Brian Freitas

Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023. We highlight 38 pair trades that...

Douglas Kim

Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023. We highlight 33 pair trades that...

Douglas Kim

Korean Holdcos Vs Opcos Gap Spreads Opportunities Amid Market Carnage

In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage. We highlight 26 pair trades...

Douglas Kim

Korea Single Subsidiary Stub Trade: 18 in Total with 3 New Ones

This insight tracks a total of 18 single subsidiary holding companies in Korea for stub trade. I revised the NAV discounts.

Sanghyun Park

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52-week Range

Market Cap (USDm)

P/E

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