In today’s briefing:
- Examining the September Reshuffle of the KOSPI Size Index Series
- Warren Buffett Invests in Ulta Beauty – Positive Impact on CJ Corp?
- Hankook Tire & Technology: M&A of Hanon System Falling Apart?
Examining the September Reshuffle of the KOSPI Size Index Series
- The September KOSPI Size Index rebalancing could bring back the typical price impacts seen over the past decade, unlike the March rebalancing.
- The previous rebalancing had anomalies due to newly listed stocks in LARGE and a stronger downward trend in LARGE-to-MID transitions, disrupting the expected price impact.
- For September’s rebalancing, fewer distortions are expected compared to March. The NPS Mid to Small Cap fund, a key influence, shows no significant changes in benchmark or AUM.
Warren Buffett Invests in Ulta Beauty – Positive Impact on CJ Corp?
- In this insight, we discuss how Warren Buffett’s recent investment in Ulta Beauty is likely to have a positive impact on CJ Corp’s valuation.
- CJ Olive Young (largest shareholder is CJ Corp) is the dominant health & beauty cosmetics chain in Korea. CJ Olive Young has a similar business model to Ulta Beauty.
- Our NAV analysis suggests an implied market cap of 4.7 trillion won or implied price of 160,977 won per share for CJ Corp, representing a 38% upside from current levels.
Hankook Tire & Technology: M&A of Hanon System Falling Apart?
- There are increasing signs that Hankook Tire & Technology’s M&A of Hanon Systems could be falling apart.
- The deadline for signing the main M&A contract to purchase a 25% stake in Hanon Systems has been postponed indefinitely.
- New contingent liabilities at Hanon Systems have been uncovered during the 10 week due diligence process of Hanon Systems by Hankook T&T.
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