In today’s briefing:
- Light at the End of the Dark Tunnel for Korean Cosmetics?
- Lotte Chemical Offering Terms & Trading Angle Targeting K200 Inflow on Ex-Date
Light at the End of the Dark Tunnel for Korean Cosmetics?
- We believe that there is finally some light showing at the end of the dark tunnel for the two leading Korean cosmetics companies LG H&H and Amorepacific Corp.
- These two stocks have underperformed the market in the past year but have started to outperform the market in the past three weeks.
- There are credible signs that indoor mask wearing in Korea will be eliminated in Korea on/near March 2023 and that the inbound visitors to Korea will continue to increase significantly.
Lotte Chemical Offering Terms & Trading Angle Targeting K200 Inflow on Ex-Date
- Lotte Chemical offers 8.5M new shares, which is ₩1.1T based on the provisional price of ₩130,000. This is a capital increase rate of 24.8%.
- This event has already been leaked in advance from early last week, so it isn’t easy to expect a significant return from the short-selling approach immediately after the announcement.
- Instead, we should pay attention to the KOSPI 200 passive inflow that occurs the day before the ex-date. It is estimated to be approximately 0.8x ADTV.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
