In today’s briefing:
- EcoPro Materials: IPO & Index Inclusion
- Seizing a Trading Opportunity Aimed at HMM’s New Stock Listing Date
- Three IPO Candidates of the Dongwon Group (StarKist, Dongwon Loex, and Dongwon Home Food)
- EQD | KOSPI 200 Index Getting OVERSOLD
- Celltrion (068270 KP): Improving Base Business Is Being Overlooked by Mr. Market Amid Merger Noises
EcoPro Materials: IPO & Index Inclusion
- EcoPro Materials (ECO123 KS) was founded in 2017 and specializes in manufacturing cathode material precursors, a core material for lithium secondary cells.
- EcoPro Materials (ECO123 KS) could raise between US$387m-US$492m, valuing the company between US$1.9bn-US$2.42bn. Float will depend on voluntary lock-ups and allocation to strategic investors.
- Inclusion in global indices is likely to take place between February to June, while the highest probability of Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) inclusion is in December 2024.
Seizing a Trading Opportunity Aimed at HMM’s New Stock Listing Date
- Should the stock conversion decision be reached this week, the new shares will be listed on the 15th of the upcoming month. So, they will officially debut on October 16th.
- On the day of the new share listing during the immediate previous case, the price dropped by 2.36%, and on the very next trading day, it declined by 3.72%.
- Given the present dilution rate of 30%, there is a higher probability of even more pronounced price movements in the same direction.
Three IPO Candidates of the Dongwon Group (StarKist, Dongwon Loex, and Dongwon Home Food)
- It was reported in the local Korean media that the Dongwon Group is considering on listing three private companies including Starkist, Dongwon Loex, and Dongwon Home Food.
- Prior to their IPOs, Dongwon Group is reviewing the potential of selling partial stakes in these companies in pre-IPO investments.
- One of the major purposes of the IPOs would be to gain access to more capital which could be used by the Dongwon Group to acquire HMM.
EQD | KOSPI 200 Index Getting OVERSOLD
- The KOSPI 200 INDEX closed down last week (CC=-1) and is currently down this week as well (CC=-2 to be confirmed on Friday), currently approaching Q3 support at 324.
- Based on Market Reversal Matrix time/price models, if this week the KOSPI closes down at <=324, the index will have a >75% probability to close the next week up.
- Going LONG is not without risk at this stage: this pattern is not bullish, the correction could reach <300, based on the models, but the index is getting OVERSOLD.
Celltrion (068270 KP): Improving Base Business Is Being Overlooked by Mr. Market Amid Merger Noises
- As Celltrion (068270 KP) approaches merger clarity, focus will shift to its base business, which remains solid. In Q2 2023, biosimilar, the flagship business, reported a 10% YoY growth.
- Operating profit margin expanded 440bps YoY to 34.9%. Margins are expected to improve further through increasing contribution from high-margin products such as Yuflyma (Humira biosimilar) and Remsima SC.
- Celltrion expects to receive approval for Remsima SC in the U.S. by end of October, which should act as a major catalyst. By 2030, merged entity targets revenue of KRW12T.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
