In today’s briefing:
- Korea’s First Sector Inverse ETF: Discussing Flow Trading Impacts
- Doosan Robotics IPO: The Bull Case
- Zeus Co: Listing of JET Co Japanese Subsidiary and NAV Valuation
- Zeus Co (079370 KS): Is J.E.T.’s Spin-Off Priced In?
- Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition
Korea’s First Sector Inverse ETF: Discussing Flow Trading Impacts
- KB Asset Management has announced the release of an inverse ETF, containing the top 10 core stocks in the secondary battery sector.
- Given the substantial fluctuations in SSF trading volume in Korea, the flow increase of this ETF might temporarily lead to an unusually high level of backwardation.
- Also, we may observe a phenomenon known as ‘wag-the-dog’ as the flow of this inverse ETF could act as a triggering factor for a temporary spark.
Doosan Robotics IPO: The Bull Case
- Doosan Robotics (DOOSANROBO KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.
- The international bookbuilding will run from 28 August to 15 September, while the domestic book will be open from 11 to 15 September. Pricing will be announced on 19 September.
- The bull case rests on the market share gains, rapid forecasted growth, the industry’s largest product lineup, rapid expansion in sales channels and key accounts growth.
Zeus Co: Listing of JET Co Japanese Subsidiary and NAV Valuation
- Our NAV valuation of Zeus Co suggests an implied price target of 32,991 won, which is 13% lower than current share price.
- Given the lack of upside, we would avoid Zeus shares at current prices.
- Currently, JET Co is listed on Tokyo PRO Market Exchange. JET Co is expected to switch its listing to the Tokyo Standard Market Exchange.
Zeus Co (079370 KS): Is J.E.T.’s Spin-Off Priced In?
- Zeus Co Ltd (079370 KS), a maker of semiconductor equipment, flat panel display equipment, and facility automation solutions, intends to spin off 95%-held J.E.T. Co (6228 JP) next month.
- J.E.T., a semiconductor etching equipment play, will list on the 25 September. Pricing is expected around the 5 September.
- Zeus’ share price has fallen 33% in the past month. That may be justified.
Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition
- Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO.
- Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
- In our previous notes, we talked about the company’s past performance. In this note, we undertake a peer comparison.
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