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Most Read: Cal Comp Electronics Thailand, Samsung Engineering, Tsuruha Holdings, Adani Green Energy, InnoScience Suzhou Technology, Greatview Aseptic Packaging, Shandong Hi-Speed New Energy G, SGX Rubber Future TSR20, Binggrae Co Ltd and more

In today’s briefing:

  • SET50 Index Rebalance: Four Changes; Cal Comp🚀
  • Korea: Potential Relegations from K League 1
  • Tsuruha (3391) And Welcia (3141) To Move UP Merger to End-2025; Makes It TWO Trades in 18mos?
  • Adani Green Energy (ADANIGR IN): Facing the Passive Boot; But Who Will Buy?
  • InnoScience (2577 HK): Prices at Low End & Lists Today; Index Inclusion Timeline
  • GAPack (468 HK): Hong Kong’s Takeovers Code Needs A PUSU Rule
  • Shandong Hi-Speed New Energy (1250 HK)’s Unconditional MGO. It Is What It Is
  • Supply Shortage Boost Likely Short Lived; Caution Prevails Around 2025 Outlook
  • Surging Share Buybacks in Korea in 2024
  • Our Screening Process Methodology for Picking Top Small Cap Stocks in KOSPI in 2025


SET50 Index Rebalance: Four Changes; Cal Comp🚀

By Brian Freitas


Korea: Potential Relegations from K League 1

By Brian Freitas

  • There are quite a few stocks in Korea that have underperformed their peers and could be deleted from global passive portfolios in February.
  • There are still 3 weeks left for the stocks to redeem themselves and avoid relegation from the K League, so watch out for big price moves.
  • Based on our estimate of passive assets, trackers will need to trade between US$45m to US$114m of the stocks. Impact will vary between 2.6x-30x of ADV to trade.

Tsuruha (3391) And Welcia (3141) To Move UP Merger to End-2025; Makes It TWO Trades in 18mos?

By Travis Lundy

  • In Feb-24, Aeon (8267) agreed with Oasis Management to buy its stake in Tsuruha Holdings (3391) and Tsuruha and Welcia Holdings (3141) would discuss a merger, details decided by end-2027.
  • On Saturday 27 December, a Jiji article said the two would look to integrate by end-2025, now that they no longer need SEC approval. That reason sounds wrong.
  • The language of the articles is odd but we have to take it at face value. That means we look to what might happen between here and there.

Adani Green Energy (ADANIGR IN): Facing the Passive Boot; But Who Will Buy?

By Brian Freitas

  • Passive global index trackers sold Adani Green Energy (ADANIGR IN) in November following a big drop in free float for the stock.
  • There could be more selling in Adani Green Energy in February as the stock is deleted from the same large global index due to failing free float market cap thresholds.
  • With the company at the center of the U.S indictment focused on bribery charges, active foreign and local investors will be wary of buying the stock.

InnoScience (2577 HK): Prices at Low End & Lists Today; Index Inclusion Timeline

By Brian Freitas

  • InnoScience Suzhou Technology (2577 HK) has priced its IPO at HK$30.86/share, the low end of the range. Over half the shares have been allotted to cornerstone investors.
  • InnoScience Suzhou Technology (2577 HK) should be added to the HSCI in March and will be added to Southbound Stock Connect early March.
  • Inclusion in global indices will take place in 2026 and there will be supply in mid- and late-2025 following lock-up expiries.

GAPack (468 HK): Hong Kong’s Takeovers Code Needs A PUSU Rule

By David Blennerhassett

  • In the UK, once a Bidder is named in a possible offer announcement, the Bidder has 28 days to either announce a firm Offer intention or walk away. 
  • This is known as a ‘put up or shut up’ or ‘PUSU’ deadline. Hong Kong’s takeover rules has no such provision.
  • It’s ~21 weeks since co-founders Jeff Bi and Gang Hong tabled a non-binding Offer. With no firm Offer in sight, AND contesting a SAMR ruling, they should fold their tent.

Shandong Hi-Speed New Energy (1250 HK)’s Unconditional MGO. It Is What It Is

By David Blennerhassett


Supply Shortage Boost Likely Short Lived; Caution Prevails Around 2025 Outlook

By Arusha Das

  • Possibility of short peak can result in short-lived shortage  
  • Declining Chinese TSR inventory can lend demand support  
  • Uncertainty around policies weighs upon the market confidence

Surging Share Buybacks in Korea in 2024

By Douglas Kim

  • Capitalizing on the lower share prices combined with the government’s pressure for Corporate Value up improvements, the share buybacks surged in Korea in 2024.
  • As of 27 December 2024, the total treasury shares planned acquisition amount by Korean companies increased by 215% YoY to 11.83 trillion won in 2024.
  • There have been some mixed share price performances among the companies announcing meaningful share buyback/cancellation announcements this year.

Our Screening Process Methodology for Picking Top Small Cap Stocks in KOSPI in 2025

By Douglas Kim

  • In this insight, we provide our screening process methodology for picking top small cap stocks in KOSPI in 2025. 
  • We used a 7 step process to narrow down a list of 30 stocks in KOSPI including market cap, ROE, sales growth, P/E, P/B, and Smartscore.  
  • The top five stocks on the Korean small cap stocks screen include Binggrae, Innocean Worldwide, Hanil Holding, Miwon Chemicals, and Daechang Forging.

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