In today’s briefing:
- KOSPI200 Dec24 Rebal: 4 ADDs, 5 DELs, Big ADV on Small Stocks
- Dividend Tax Cut Decision Scheduled for 25th, Next Monday: Watch Sammy Prefs
- SK Square: A Solid Corporate Value Up Plan Likely to Lead to Continued Outperformance
- LG Corp: Key Highlights from Its Corporate Value-Up Plan and Updated NAV Valuation
KOSPI200 Dec24 Rebal: 4 ADDs, 5 DELs, Big ADV on Small Stocks
- The December 2024 index review results for the KOSPI Indices were announced after the close on Thursday 21st November 2024.
- There will be four ADDs and five DELs for KOSPI 200 during the December 2024 index rebal event.
- We predicted 8 out of 9 changes correctly. We missed one of the DELs and we expected a couple extra changes which did not materialize.
Dividend Tax Cut Decision Scheduled for 25th, Next Monday: Watch Sammy Prefs
- The opposition’s pushing a Commercial Act amendment, and to gain ruling party support, they might strategically ease up on the dividend tax issue—classic quid pro quo.
- The Samsung family’s collateral risk eased with a 10 trillion won buyback, but local markets are still cautious. Local traders now eye another 10 trillion won shareholder return.
- The timing of the special dividend and tax deadlines may cause mismatches, but we should watch for earlier price moves in Samsung Electronics preferred shares.
SK Square: A Solid Corporate Value Up Plan Likely to Lead to Continued Outperformance
- SK Square (402340 KS) announced a solid corporate value up plan pushing up its share price by 8.8% to 87,500 won on 22 November.
- Major highlights of the corporate value up plan included cancellation of 200 billion won of treasury shares, higher ROE target, and achieve 1x PBR ratio (nearly double the current ratio).
- Our NAV analysis of SK Square suggests NAV of 15.2 trillion won or 112,822 won per share, representing 29% higher than current share price.
LG Corp: Key Highlights from Its Corporate Value-Up Plan and Updated NAV Valuation
- In this insight, we provide the major highlights of the solid Corporate Value Up plan announced by LG Corp on 22 November.
- The key highlights include about 500 billion won worth of share cancellation by 2026, improved dividend policy, and higher ROE target.
- Our base case NAV valuation analysis of LG Corp suggests implied NAV of 16.1 trillion won or NAV per share of 102,426 won, which is 33.4% higher than current price.
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