In today’s briefing:
- Samsung Electronics: Prefs Need to Catch Up
- Nexteel IPO Book Building Results Analysis
- EQD | KOSPI 200 Index WEEKLY Trend Analysis
- KT Corp: A New CEO Nominated and Stronger Than Expected Results in 2Q 2023
Samsung Electronics: Prefs Need to Catch Up
- Over the last year, the discount of Samsung Electronics Pref Shares (005935 KS) to Samsung Electronics (005930 KS) has increased from 5% to 17%.
- The preferred shares have adequate liquidity, a large issue market cap, and now trade at a much higher dividend yield. A special dividend will further increase the dividend yield differential.
- Breaking from history, the preferred shares discount has continued to increase as the stock has moved higher. With the preferred shares trading near its widest discount, that could change.
Nexteel IPO Book Building Results Analysis
- Nexteel reported disappointing IPO book building results from institutional investors. The IPO price has been confirmed at 11,500 won which is at the low end of the IPO valuation range.
- A total of 700 institutions participated, with a demand ratio of 236 to 1. It is scheduled to be listed on the KOSPI exchange on 21 August.
- Despite the weak IPO book building results, we maintain our positive view of the Nexteel IPO. Our base case valuation of Nexteel is implied market cap of 485.8 billion won.
EQD | KOSPI 200 Index WEEKLY Trend Analysis
- The KOSPI 200 index last week closed down (CC=-1). This particular pattern is very bullish: 78% of the time the index closes the week up after -1 week down.
- The index has been stuck sideways between 348 and 330 for weeks, we still see a buy-the-dip opportunity to ride the continuation of the Bull run from here.
- Main support area to go LONG, based on the Market Reversal Matrix’s readings, is between 337 and 335. Time+space estimated probability of success is between 64% and 76%.
KT Corp: A New CEO Nominated and Stronger Than Expected Results in 2Q 2023
- KT Corp (030200 KS)’s shares were up 4.1% today to 32,000 won driven by better than expected results in 2Q 2023 and the nomination of a new CEO.
- KT has nominated Kim Young-Seop, the former CEO of LG CNS as the new CEO of the company.
- KT Corp has attractive valuations. It is trading at only 2.6x EV/EBITDA, 6.7x P/E, and 0.5x P/B in 2023. These valuation multiples are much cheaper than SK Telecom.
💡 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
