In today’s briefing:
- KOSPI 200 Flow Trading: Those Subject to a Significant Float Rate Change
- KOSDAQ150 Ad Hoc Index Rebalance: EM-Tech (091120 KS) To Replace SBW Life (151910 KS)
- KOSDAQ 150: Special Changes (SBW Life Science: Deletion & EM-Tech: Addition)
- Rebellions: Challenging Nvidia in the AI-Powered Semiconductor Chips
- HD Hyundai: NAV Boost From Record Results At Hyundai Oilbank + High Dividend Yield
KOSPI 200 Flow Trading: Those Subject to a Significant Float Rate Change
- Samsung SDS and Meritz Financial will welcome a 6%p and 30%p increase, respectively, in the upcoming rebalancing in June.
- Assuming a K200 tracking fund size of 65 trillion won, they are expected to receive 2.69x and 5.47x ADTVs, respectively. This is enough for us to consider a preemptive position.
- However, in the case of Samsung SDS, we need to consider potential price correction by the scheduled block deal (1.95%) and develop a multi-phased approach to minimize timing conflicts.
KOSDAQ150 Ad Hoc Index Rebalance: EM-Tech (091120 KS) To Replace SBW Life (151910 KS)
- Following Nanos Co Ltd (151910 KS)‘s designation as an Investment Attention Issue, the stock will be deleted from the KOSDAQ150 Index and replaced with Em Tech Co Ltd (091120 KS).
- Passive trackers are estimated to buy 1.3 days of ADV on Em Tech Co (091120 KS) while they will need to sell 1.1 days of ADV on Nanos (151910 KS).
- Em Tech Co Ltd (091120 KS) was up yesterday but the stock is still way off its highs. The stock should trade higher over the next few days.
KOSDAQ 150: Special Changes (SBW Life Science: Deletion & EM-Tech: Addition)
- The Korea Exchange announced special changes in KOSDAQ 150 after the market close today.
- Effective 28 March, SBW Life Science (151910 KS) will be excluded from KOSDAQ 150 index and Em Tech Co Ltd (091120 KS) will replace it.
- We expect 20-30% additional upside for EM-Tech from the KOSDAQ 150 inclusion and further downside risk for SBW Life Science from the index exclusion.
Rebellions: Challenging Nvidia in the AI-Powered Semiconductor Chips
- Established in 2020, Rebellions is a leading AI based fabless startup in Korea. In February 2023, Rebellions launched a new artificial intelligence chip, challenging the global leader NVIDIA.
- According to the company, its ATOM chip targets specific tasks, allowing the chip to consume only about 20% of the power of an Nvidia A100 chip on those tasks.
- Since the company’s inception, Rebellions raised 122 billion won in funding including 30 billion won from KT. The company was last valued at 350 billion won in June 2022.
HD Hyundai: NAV Boost From Record Results At Hyundai Oilbank + High Dividend Yield
- According to our NAV analysis, it suggests a base case valuation of 70,272 won per share for HD Hyundai, representing a 23% upside from current levels.
- The expected dividend yield of HD Hyundai in 2023 is 7.8% which is attractive.
- Hyundai Oilbank generated record results in the past year and this has been a key boost to the NAV of HD Hyundai.
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