In today’s briefing:
- LG Energy Solution: Trading Strategy on End of ESOP Lockup & Valuation Comparisons
- K200 ETFs’ Swap Trading on Meritz & Fresh Buy-In JB Financial on Jan 27
- PIF and GIC Combined Invest About 1.2 Trillion Won in Kakao Entertainment
- Classys (214150 KS): Will Continue To Remain On a Consistent Growth Path Through New Launches
- Aequitas 2023 Asia IPO Pipeline – India, ADRs, Korea, Japan and ASEAN
LG Energy Solution: Trading Strategy on End of ESOP Lockup & Valuation Comparisons
- This insight provides a trading strategy on LG Energy Solution (373220 KS) with a focus on the end of the ESOP shares lockup period on 27 January.
- Currently, LG Energy Solution is trading at P/E of 46.5x in 2024 which is more than 100% higher than the P/E multiples of CATL (20.4x) and Tesla (19.2x) in 2024.
- Our view is that in the long-term, LG Energy Solution should not trade at such high valuation premium to Tesla given the latter company’s higher return on capital.
K200 ETFs’ Swap Trading on Meritz & Fresh Buy-In JB Financial on Jan 27
- KOSPI 200 ETFs will have to sell Meritz FIRE and buy Meritz FINANCIAL at the close on January 27. JB Financial, the top reserved issue, will replace FIRE.
- We should consider a Long Short for two Meritz companies just before the 27th. As a follow-up setup, we should aim for a potential widening of the swap arb spread.
- As for the Long JB Financial, I would set the entry timing one week towards the implementation at the latest and look into Kodex Banks ETF (091170) for a hedge.
PIF and GIC Combined Invest About 1.2 Trillion Won in Kakao Entertainment
- On 11 January, it was announced that Kakao Entertainment (103260 KS) has attracted large scale investments from Saudi Arabia’s Sovereign Fund (Public Investment Fund – PIF) and GIC (Singapore).
- Maekyung Business Daily reported that PIF and GIC combined invested about 1.1 trillion won to 1.2 trillion won in Kakao Entertainment, valuing the company at about 10 trillion won.
- This major investment in Kakao Entertainment by PIF and GIC should have a positive impact on Kakao Corp (035720 KS), the controlling shareholder of the company.
Classys (214150 KS): Will Continue To Remain On a Consistent Growth Path Through New Launches
- Classys (214150 KS) has started selling Volnewmer from the end of October 2022. With a safe and comfortable treatment experience, Volnewmer will become another strong growth engine.
- The ratio of consumables sales to total sales is gradually increasing from 33% in Q1 2022 and 37% in Q2 2022 to 46% in Q3 2022, leading to improved profitability.
- Classys recorded 30%+ revenue growth and margin improvement in Q3, with the cumulative sales in Q3 of this year exceeded 2021 annual sales, which was already the largest.
Aequitas 2023 Asia IPO Pipeline – India, ADRs, Korea, Japan and ASEAN
- In this note, we will take a look at the Asia Pacific IPO pipeline for 2023, specifically for India, Asia-linked ADRs, Korea, Japan and ASEAN.
- This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
- The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.
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