In today’s briefing:
- SK Square’s Special Dividend Momentum Trading: Entry Timing at Month End.
- SK Square: Share Cancellation and More Share Buyback Likely from Sale of SK Shieldus in 2H 2023
- Almac IPO: Change in IPO Regulation & Trading Strategy in First Day of Trading
- Daehan Flour Millsㅣ ControversyㅣConfidential Information Leakage in ‘Gompyo Wheat Beer’ Supply Chain
SK Square’s Special Dividend Momentum Trading: Entry Timing at Month End.
- The market’s attention has shifted to the second part, which is the additional utilization of a portion of the harvest result for shareholder returns.
- There is a significant possibility that the timing to allocate the ₩200B for shareholder returns will be advanced to late July or early August.
- We should set up a position aiming for the potential for a special dividend, which may lead to momentum trading flow just before the quarterly ex-div date later this month.
SK Square: Share Cancellation and More Share Buyback Likely from Sale of SK Shieldus in 2H 2023
- SK Square announced that it will cancel treasury shares worth 2.5 million shares on 4 October 2023, which represents 1.8% of its current outstanding shares.
- Our NAV analysis of SK Square suggests NAV of 9.4 trillion won or NAV per share of 66,421 won, representing a 45% upside from current levels.
- SK Square’s positive shareholder return policies including higher share buybacks, cancellations, and dividends are result in further outperformance of SK Square relative to KOSPI this year.
Almac IPO: Change in IPO Regulation & Trading Strategy in First Day of Trading
- Almac IPO is likely to benefit from the change in IPO regulations in Korea, which could result in a spike in its share price in the first day of trading.
- Starting next week, the Korean IPO rules are changed so that the price limit on the newly listed companies will be expanded to 60-400% of the IPO price.
- We believe Almac’s shares could OVERSHOOT by more than 200-250% versus the IPO price on the first day of trading, which would be 150,000 won to 175,000 won per share.
Daehan Flour Millsㅣ ControversyㅣConfidential Information Leakage in ‘Gompyo Wheat Beer’ Supply Chain
- A legal conflict over the brewing method has emerged between Seven Broi Brewery, the former manufacturer, and Daehan Flour Mills, the trademark holder.
- The court’s decision on Seven Broi Brewery’s injunction request could impact the production and sale of Gompyo Wheat Beer, with a competitor ready to enter the market.
- This incident falls under the category of ‘Anti-competitive Practices’ risks, and currently, Daehan Flour Mills’ company risk is rated at a medium level of 1.3.
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