In today’s briefing:
- Preemptive Flow Trading Opportunities with the Fastest-Growing Sector ETFs in Korea
- Krafton Inc (259960 KS)： PUBG’s Re-Approval in India Could Bring 5% Revenue/Profit Upside
Preemptive Flow Trading Opportunities with the Fastest-Growing Sector ETFs in Korea
- Two SOL sector ETFs are unique in that they only include companies positioned upstream. This results in a group of smaller-sized constituents, which can have a greater flow impact.
- Once the universe is established, constituent selection and weight adjustment are determined exclusively using full/float market capitalization. As a result, flow trading can be highly predictable.
- Although they have lower AUM, the five Semiconductor constituents could still face a significant flow impact during this one-day flow event due to their much lower DTV.
Krafton Inc (259960 KS)： PUBG’s Re-Approval in India Could Bring 5% Revenue/Profit Upside
- We estimate that the re-approval of PUBG Mobile in the India will contribute to a 5% increase in Krafton’s annual revenue/profit.
- Despite being banned in India for several times, PUBG Mobile is expected to receive a warm welcome from local players due to its high quality gameplay and good device compatibility.
- We upgraded our rating to “Buy” in Feb.2023, citing reasons such as PUBG Mobile stabilizing in key markets and Bluehole’s new product schedule. Currently, we remain optimistic view about Krafton
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