In today’s briefing:
- Market Talk on the Five Stocks Hitting the Lower Limit Yesterday
- A Pair Trade Between Hanmi Science and Hanmi Pharm
- ESG Report: Hanmi Pharmaceutical Co. (128940 KS) And Hanmi Science (008930 KS)
Market Talk on the Five Stocks Hitting the Lower Limit Yesterday
- The trigger for yesterday’s sell-off was the sudden collective decision of the brokerages that had been allowing credit trading for these stocks to halt credit trading simultaneously.
- There is a possibility that the identities of the stocks under investigation were leaked, and these brokerages took preemptive actions.
- There have also been observations of large-cap stocks that may become the next targets. Some notable examples include Cosmo Chemical, Kum Yang, Posco International, and Ecopro Co.
A Pair Trade Between Hanmi Science and Hanmi Pharm
- There has been a big divergence in the share prices of Hanmi Science and Hanmi Pharm in the past two months.
- This divergence in share price appears to be a bit too excessive and we believe this gap is likely to narrow in the coming weeks.
- We like a pair trade between going long Hanmi Science and going short on Hanmi Pharm.
ESG Report: Hanmi Pharmaceutical Co. (128940 KS) And Hanmi Science (008930 KS)
- Hanmi Pharmaceutical and Hanmi Science have demonstrated consistent financial performance through aggressive R&D investments, with significant achievements based on internally developed products in 2022.
- The new leadership structure of the company has the potential to improve corporate governance transparency, but there is a need for further shareholder-friendly changes, such as expanding dividend policies.
- Overall, the company’s current status, valuation, and ESG performance trends indicate positive prospects, including transparent management practices, sustained investment in R&D, and plans to enhance dividend policies.
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