In today’s briefing:
- KOSPI/KOSDAQ Buybacks in Progress: Those with High Daily Flow Screened
- LG Energy – LFP Disruption Could Mean Marginalisation Within Big 3
- LG Energy Solution: End of the 3 Months Lock Up Period, Higher Short Selling, & JV with Stellantis
KOSPI/KOSDAQ Buybacks in Progress: Those with High Daily Flow Screened
- I screened those local buybacks in Korea with a market cap of +₩300B. I further selected those whose buyback volume exceeds 0.5% of SO and buyback completion is below 50%.
- I then narrowed them down to those whose buybacks will likely be completed within 30 trading days with a daily buyback x ADTV of 0.15x or higher.
- As a result, I obtained nine names: Hwasung Industrial, SK Chemicals, Meritz Securities, Huons Global, Daishin Securities, E-Mart, Meritz Financial Group, Meritz Fire, & Hwaseung Industries
LG Energy – LFP Disruption Could Mean Marginalisation Within Big 3
- The Nikkei reported today on rumblings between Korean battery suppliers and their American customer OEMs.
- The crux of the dispute is about technology access and risks of technology leakage which are normal in the scheme of things.
- However, expiring LFP patents which we have flagged are likely to result in this dispute going badly for battery suppliers.
LG Energy Solution: End of the 3 Months Lock Up Period, Higher Short Selling, & JV with Stellantis
- We discuss the end of the three months lock-up period, higher short selling of LG Energy Solution as well as the recent JV formation with Stellantis.
- At the current price of 439,000 won, we believe there is a 15% downside risk to LG Energy Solution shares over the next 3-6 months.
- LGES’s share price has rallied by 8% since the news about the JV with Stellantis have been announced but we believe this rally is likely to be short-lived.
Before it’s here, it’s on Smartkarma
