In today’s briefing:
- FnGuide Semiconductor Top10 Index Rebalance Preview: Just One Change Likely
- KCC Corp: Considering on Issuing an Overseas EB for Its 10% Stake in Samsung C&T
- Complete Breakdown of the HLB Merger Swap Details
- Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 2Q 2025
FnGuide Semiconductor Top10 Index Rebalance Preview: Just One Change Likely
- With the averaging period for the April rebalance now complete, we forecast just 1 change for the FnGuide Semiconductor Top10 Index at the upcoming rebalance.
- Based on the passive assets tracking the index, there will be between 0.8-2.2x ADV to trade in the forecast changes.
- The resumption of short selling makes it easier to position for these events. That could also result in the shorts moving a lot ahead of implementation.
KCC Corp: Considering on Issuing an Overseas EB for Its 10% Stake in Samsung C&T
- Kcc Corp (002380 KS) is considering on issuing an overseas exchangeable bond (EB) for its 10% stake in Samsung C&T (028260 KS).
- KCC is the second largest shareholder of Samsung C&T with a 10% stake in the company which is worth 2 trillion won (US$1.4 billion).
- Our NAV valuation of KCC Corp suggests NAV per share of 332,947 won, which is 27% higher than current price.
Complete Breakdown of the HLB Merger Swap Details
- Appraisal rights are for HLB Life Science holders only. Record date: April 16. Objection: May 28–June 11. Exercise: June 12–July 2. Spread’s fat—over 11% today.
- Swap spread closed at 2.3%. With short selling back, execution looks clean. Classic arb: short HLB Inc, long HLB Life Science, cover with new HLB Inc shares post-merger.
- HLB has a cult-like retail base that follows management blindly. Despite headline cancellation risk, real odds may be lower, meaning the swap spread could be seriously mispriced—prime arb setup.
Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 2Q 2025
- In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 2Q 2025.
- The following five pairs (between common and prefs) have experienced more than 10% difference in their share prices in the past six months.
- These five pairs (LG Chem, Amorepacific Corp, Amorepacific Group, CJ Cheiljedang, and Korea Investment Holdings) are more likely to revert to closing their gaps in the coming weeks.
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