In today’s briefing:
- Hyosung Corp (004800 KS): Spin-Off & KOSPI200 Index Implications
- Details of Korea Value-Up Initiatives & Index, Announced This Morning
Hyosung Corp (004800 KS): Spin-Off & KOSPI200 Index Implications
- Hyosung Corporation (004800 KS) has announced that it is spinning off part of its business holdings to Hyosung New Holding Corporation in a 0.818:0.182 ratio.
- The stock will remain suspended from late June to late July. We expect Hyosung Corporation (004800 KS) to maintain its index membership while the New Entity will not be added.
- The dynamics between listed ETFs and non-listed passive trackers differ and we take a look at the potential index flows.
Details of Korea Value-Up Initiatives & Index, Announced This Morning
- The rollout of the Korea Value-Up Index has encountered a minor delay. Completion of the index is slated for 3Q, with ETFs scheduled for release in 4Q.
- The government will encourage the National Pension Service to utilize it as a benchmark.
- Dividend payout ratio, dividend yield, PER, and cash flow will be included as screening factors for this index, in addition to the already known factors of PBR and ROE.
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