In today’s briefing:
- KRX’s September Major Rebalancing Events: Why We Should Focus on KRX BBIG
- End of Mandatory Lock-Up Periods for 41 Companies in Korea in August 2024
- Latest Update on Hanon Systems Stake Sale: Consider Long Short Setup on Hankook Tire & Hanon
- TMON and WeMakePrice File for Court Receivership – Impact on the Korean E-Commerce and PG Sectors
KRX’s September Major Rebalancing Events: Why We Should Focus on KRX BBIG
- The KRX BBIG’s concentrated weight and top three replacements still attract significant flow trading interest despite a decline in AUM.
- In the Battery Sector, Posco Future M will replace Ecopro BM, while in the Bio Sector, Alteogen will replace SK Biopharmaceuticals.
- A significant single-day passive flow is expected, especially for SK Biopharm. Additionally, a day trading setup with Posco Future M and Ecopro BM will likely attract substantial interest.
End of Mandatory Lock-Up Periods for 41 Companies in Korea in August 2024
- We discuss the end of the mandatory lock-up periods for 41 stocks in Korea in August 2024, among which 2 are in KOSPI and 39 are in KOSDAQ.
- These 41 stocks on average could be subject to further selling pressures in August and could underperform relative to the market.
- The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in August include APR, Fadu, and Kuk Il Paper.
Latest Update on Hanon Systems Stake Sale: Consider Long Short Setup on Hankook Tire & Hanon
- Today’s news indicates Hankook Tire found contingent liabilities in Hanon Systems’ finances, meeting conditions to break the May agreement and putting the deal on indefinite hold.
- Hankook Tire plans to adjust the new share price first, then the existing share price, while Hahn & Co, unable to delay its exit, will likely accept it.
- With Hahn & Co likely to accept Hankook Tire’s price adjustment request, consider a long-short setup: Hankook Tire may benefit from positive momentum, while Hanon Systems faces negative dilution.
TMON and WeMakePrice File for Court Receivership – Impact on the Korean E-Commerce and PG Sectors
- One of the biggest stories in the Korean e-commerce sector this week has been TMON and WeMakePrice filing for court receivership due to liquidity crisis.
- Singapore’s Qoo10 is the controlling shareholder of TMON and WeMakePrice. Young-Bae Ku is the largest shareholder of Qoo10 with a 42.77% stake, followed by KKR with a 25.65% stake.
- Competitors such as E-Mart and Coupang are most to benefit. PG companies such as KG Inicis and NHP KCP are negatively impacted.
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