In today’s briefing:
- Trading Opportunity Coming on SK Telecom ADR Premium
- Coupang: Four Major Factors to Drive Higher Profit Margins in 2022
- IBK – Loan to Deposit Ratio at 181%
Trading Opportunity Coming on SK Telecom ADR Premium
- ADRs are traded at a significant premium when the foreign room for underlying shares is exhausted. This is the pattern that KT showed in 2018.
- SKT’s foreign room is currently 1.85%. That is, the burnout rate is 98.15%. Only about 2M shares need to be burned to hit bottom. This is 0.91% of SO.
- The shortage of SKT ADRs is likely to intensify, which in turn suggests that the ADR premium may rise further.
Coupang: Four Major Factors to Drive Higher Profit Margins in 2022
- We have been Bearish on Coupang since 12 May 2021. Now we are turning Positive since we believe the valuations have become a lot more attractive.
- We highlight four major factors that could result in higher profit margins for Coupang in 2022 including competitors exiting early dawn service, lower COVID and EATS related costs.
- Our base case valuation of Coupang is implied market cap of $24.9 billion and target price of $14.1 per share, representing 32% upside from current levels.
IBK – Loan to Deposit Ratio at 181%
- A wholesale funded bank with rising rates can see margin compression
- In recent months Korea shows a higher delta on funding costs than loan yields
- Credit costs already at half normal level, where ramp up was never high in FY20-21
Before it’s here, it’s on Smartkarma
