In today’s briefing:
- One Unnoticed Addition to KOSDAQ 150: Yunsung F&C Through Special Inclusion
- Korea Investment & Securities’ Suspension of Credit Loans for Stock Purchases – The Trigger Event?
- We Should Aim at Kiwoom Securities’ Potential Legal Risk-Induced Stock Price Decline
- Samsung Biologics (207940 KS): Slow Start of 2023; Stronger Growth in H2; 2023 Guidance Raised
One Unnoticed Addition to KOSDAQ 150: Yunsung F&C Through Special Inclusion
- Due to the matched order fraud incident in recent days, there has been a significant change in the KOSDAQ top 50 rankings, presenting a great opportunity for Yunsung F&C.
- The estimated size of the passive inflow that it is likely to receive is approximately 0.5-0.8x ADTV for ETFs alone, and 1.2-1.5x when expanded to all passive funds.
- We should note that the level of market exposure to inclusion possibility has been significantly low. Therefore, we can expect a significant price impact at the time of the announcement.
Korea Investment & Securities’ Suspension of Credit Loans for Stock Purchases – The Trigger Event?
- The reduction of credit loans by Korea Investment & Securities and Kiwoom Securities in the past week may have accelerated unwinding of positions of 8 stocks related to CFD selling.
- The balance of credit loans for KOSPI increased 12.7% YTD. On the other hand, the balance of credit loans for KOSDAQ increased by 36.1% YTD.
- As local securities companies further reduce credit loans and regulators also restrict CFD related leverage, a sound pair trade could be to go long KOSPI 200 and short KOSDAQ 150.
We Should Aim at Kiwoom Securities’ Potential Legal Risk-Induced Stock Price Decline
- The recent matched order operation’s ringleader called in local major broadcasting companies for an interview and claimed the sell orders through SG on Monday were not from their CFD accounts.
- The trigger is Kiwoom Securities’ Chairman Kim, who created a continuous and rapid decline in stock prices and led to a vicious cycle of endless margin calls and covering orders.
- Rather than fishing for a bottom for the eight stocks from this point on, it seems necessary to actively design positions aimed at Kiwoom Securities’ legal risk-induced stock price decline.
Samsung Biologics (207940 KS): Slow Start of 2023; Stronger Growth in H2; 2023 Guidance Raised
- Samsung Biologics (207940 KS) reported year-over-year improvement in sales and operating profit in 1Q23. However, net profit declined 4% YoY due to one-off factor stemming from an acquisition last year.
- The company expects stronger growth in H2 due to revenue contribution of Plant 4 and the launch of Humira biosimilar in the U.S.
- Based on the strength of CMO business, Samsung Biologics has raised 2023 revenue growth guidance to 15–20% YoY from 10–15% YoY announced in January.
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