In today’s briefing:
- KOSDAQ150 Ad Hoc Index Rebalance Preview: VAT Could Replace Lutronic
- Amorepacific Corp: Return of the Korean Cosmetics King With End of Ban on Chinese Group Tours
- SoCar Lock-Up – Close to All-Time Low but Can Expect Some Post-Lockup Selling
KOSDAQ150 Ad Hoc Index Rebalance Preview: VAT Could Replace Lutronic
- Following the two tender offers, Han & Co now holds more than 90% of the common shares in Lutronic Corp (085370 KS) and is looking to buy the remaining shares.
- Lutronic Corp (085370 KS) is a member of the KOSDAQ 150 Index and delisting would mean an index replacement. Value Added Technologies (043150 KS) is a potential inclusion.
- Value Added Technologies (043150 KS) has underperformed its peers and trades cheaper on nearly all valuation parameters.
Amorepacific Corp: Return of the Korean Cosmetics King With End of Ban on Chinese Group Tours
- Amorepacific Corp (090430 KS) is likely to be one of the biggest beneficiaries of the return of Chinese group tours in Korea.
- Now that the Chinese government is allowing group tours to South Korea, this will likely lead to a sharp improvement in the company’s sales and profits in 2023-2024.
- We expect the consensus to raise sales estimates of Amorepacific Corp by about 3-5%+ and operating profit estimates by 20-30%+ in 2023 and 2024.
SoCar Lock-Up – Close to All-Time Low but Can Expect Some Post-Lockup Selling
- SOCAR (403550 KS) was listed on 22nd Aug 2022, where it raised US$78m in its Korea IPO. Its one-year lockup will expire on 21st Aug 2023.
- SoCar is a Korean car sharing business aiming to become an all-in-one mobility solutions provider, with approximately 83% domestic market share in the car sharing space as of 1H23.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
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