In today’s briefing:
- Timing of Double Dividends Opportunities in Korea
- Korea: Stocks with Near-Term Potential Passive Flows
- Emart: Double Catalysts Of “Open on Sundays” + Focus on Low P/B Stocks
Timing of Double Dividends Opportunities in Korea
- The change in the dividend payment system in Korea in 2024 is likely to result in some attractive “double dividends” opportunities.
- According to the Korea Exchange, there are seven stocks that have changed their dividend record dates policy last year and also that pay quarterly dividends.
- Hyundai Motor (005380 KS) (common) provides a dividend yield of 5.8% and Hyundai Motor (005385 KS) (pref) provides a dividend yield of 9.6% at current prices.
Korea: Stocks with Near-Term Potential Passive Flows
- There are a few stocks in Korea that have outperformed/ underperformed their peers and could be added to or deleted from global passive portfolios next month.
- There could be buying in EcoPro Materials and Hanjin KAL while Hotel Shilla, Pearl Abyss, F&F, Hyundai Mipo Dockyard, Hanon Systems and Jyp Entertainment could be sold.
- There will be a lot of flow on the stocks and passive trackers will need to trade over 7 days of ADV in most stocks.
Emart: Double Catalysts Of “Open on Sundays” + Focus on Low P/B Stocks
- E Mart Inc (139480 KS) has been a strong outperformer this year (up 5.6% YTD) versus KOSPI which is down 5.8% in the same period.
- We expect E Mart to outperform the market in the rest of 2024 driven by two major factors including “open on Sundays” policy and focus on low P/B stocks.
- E Mart is trading at P/B of 0.2x versus Coupang which is trading at P/B of 8.3x. E Mart is more attractive than Coupang, especially considering the recent catalysts.
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