In today’s briefing:
- LG Energy IPO Lock-Up – Last of the Lockups at US$3bn
- Hanwha Aerospace: A Surprise in MSCI’s February QCIR?
- KOSPI 200 Rebalance: JB Financial In & Meritz F&M Insurance Out
- NAVER Corp: Back to the Lows
LG Energy IPO Lock-Up – Last of the Lockups at US$3bn
- LG Energy Solution (373220 KS) (LGES) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of the IPO price range.
- The stock was listed on 27th Jan 22. Its one-year lockup is set to expire soon.
- In this note, we will talk about the lock-up dynamics and updates since our last note
Hanwha Aerospace: A Surprise in MSCI’s February QCIR?
- Hanwha Aerospace is still narrowly across the borderline. It is especially painful that the share price was corrected by more than 4% today.
- But suppose the cutoff MC is set at less than ₩2.7T, and Aerospace succeeds in recovering slightly. In that case, it will likely manage to come within the borderline.
- Given that the preemptive flow must not have been significant and the profit forecast has been upwards until recently, a price shooting may appear at the time of the announcement.
KOSPI 200 Rebalance: JB Financial In & Meritz F&M Insurance Out
- On 18 January, the KRX announced rebalance to KOSPI 200 index. The new addition to KOSPI 200 is JB Financial Group and the deletion is Meritz Fire & Marine Insurance.
- We expect JB Financial to continue to outperform the market in the first half of this year.
- However, we do not expect the sharp appreciation of JB Financial versus the other leading Korean banking stocks post JB Financial’s inclusion in KOSPI 200 on 30 January.
NAVER Corp: Back to the Lows
- Big declines in NAVER Corp holdings among active Asia Ex-Japan investors in 2022
- Allocation drop part of broader rotation out of South Korea, but NAVER Corp the most aggressively sold.
- Current exposure close to the lowest on record, but past trends suggests this could represent a turning point.
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