Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

South Korea recorded the highest daily cases (1,378) of COVID-19 on 9 July in the past 18 months. Despite enormous efforts to control COVID-19 through massive mask wearing, social distancing measures, and use of smartphone based tracing system, they have not prevented <a href="https://www.theguardian.com/world/2021/jul/10/seoul-heads-for-lockdown-as-infections-spiral-in-south-korea" target="_blank" rel="noopener">COVID-19</a> cases reaching new highs in South Korea. The chief culprit has been the Delta variant.

South Korea recorded the highest daily cases (1,378) of COVID-19 on 9 July in the past 18 months. Despite enormous efforts to control COVID-19 through massive mask wearing, social distancing measures, and use of smartphone based tracing system, they have not prevented COVID-19 cases reaching new highs in South Korea. The chief culprit has been the Delta variant. 

Highest Daily Cases of COVID-19 in Korea Driven by the Delta Variant - Impact on the Stock Market

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Shanghai Shenzhen CSI 300 Index / Technical Analysis

Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY)

Global equities (MSCI ACWI, ACWI ex-US, and EAFE) remain bullish with their uptrends intact, and the MSCI Emerging Markets index continues to hold above major support at $52 on the EEM-US. Additionally, Europe’s STOXX 50 and Hong Kong’s Hang Seng are on the cusp of short-term breakouts, while the major indexes in China (Shanghai Composite &amp; CSI 300) are currently breaking above short-term resistance... see chart below. Considering the absence of breakdowns and the fact that market dynamics remain largely positive, our overall constructive outlook remains appropriate.

Global equities (MSCI ACWI, ACWI ex-US, and EAFE) remain bullish with their uptrends intact, and the MSCI Emerging Markets index continues to hold above major support at $52 on the EEM-US. Additionally, Europe’s STOXX 50 and Hong Kong’s Hang Seng are on the cusp of short-term breakouts, while the major indexes in China (Shanghai Composite &amp; CSI 300) are currently breaking above short-term resistance... see chart below. Considering the absence of breakdowns and the fact that market dynamics remain largely positive, our overall constructive outlook remains appropriate.

Chinese Indexes Headed Higher; Actionable Themes: Transportation, Materials, and Services

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of MS-South Korea in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Samsung Electronics, HANKOOK TIRE &amp; TECHNOLOGY, DB INSURANCE, LG Display, SK Hynix, KAL, SKSQUARE, LG Chem.</li>
</ul>


We analysed the earning revision of component stocks of MS-South Korea in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Samsung Electronics, HANKOOK TIRE &amp; TECHNOLOGY, DB INSURANCE, LG Display, SK Hynix, KAL, SKSQUARE, LG Chem.


MS-South Korea Index Earning Revision (Jun): Samsung Electronics, HANKOOK TIRE & TECHNOLOGY, KAL

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

<ul>
<li>Strong top-line growth in Q126, but also margin compression due to rising OpEx</li>
<li>For Q2, Trip.com guided slower revenue growth and concomitant margin impacts</li>
<li>An antitrust investigation into Trip.com appears to be undermining growth trajectory</li>
</ul>


Strong top-line growth in Q126, but also margin compression due to rising OpEx
For Q2, Trip.com guided slower revenue growth and concomitant margin impacts
An antitrust investigation into Trip.com appears to be undermining growth trajectory


Trip.com Q126 Results | Strong Top-Line, Lower Margins | Ongoing Investigation To Hit Growth in Q226

Review of Top 10 Issues Related to Korean stock market, economy, &amp; politics in May 2020<ul>
<li>Big interest in SK Biopharm IPO</li>
<li>Announcements of IPOs of Krafton, Big Hit Entertainment, &amp; Kakao Games</li>
<li>Fintech conference &amp; major outperformance of fintech-related "big tech" stocks</li>
<li>Korean Air's 1 trillion won rights issue</li>
<li>"Korean New Deal" or "Green Digital New Deal"</li>
<li>Final Bi-Annual Rebalance Announced for KOSPI200, KOSDAQ150, &amp; KRX300: KOSPI200 Changes</li>
<li>Underperformance of Samsung Electronics</li>
<li>COVID-19</li>
<li>Kim Jong-Un finally shows up publicly</li>
<li>Korean small-cap gem series (KG Inicis &amp; Hancom)</li>
</ul>

Review of Top 10 Issues Related to Korean stock market, economy, &amp; politics in May 2020
Big interest in SK Biopharm IPO
Announcements of IPOs of Krafton, Big Hit Entertainment, &amp; Kakao Games
Fintech conference &amp; major outperformance of fintech-related "big tech" stocks
Korean Air's 1 trillion won rights issue
"Korean New Deal" or "Green Digital New Deal"
Final Bi-Annual Rebalance Announced for KOSPI200, KOSDAQ150, &amp; KRX300: KOSPI200 Changes
Underperformance of Samsung Electronics
COVID-19
Kim Jong-Un finally shows up publicly
Korean small-cap gem series (KG Inicis &amp; Hancom)


Korea Stock Market Monthly Recap #48 (May 2020)

South Korea

Korean Air Lines Co., Ltd. operates air transportation services.  The Company's services include passenger and cargo transportation, aircraft maintenance, and air catering.  Korean Air Lines provides domestic and international airline services.

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Korean Air Lines (003490 KS)

Highest Daily Cases of COVID-19 in Korea Driven by the Delta Variant - Impact on the Stock Market

South Korea recorded the highest daily cases (1,378) of COVID-19 on 9 July in the past 18 months. The chief culprit has been the Delta variant.

Douglas Kim

Chinese Indexes Headed Higher; Actionable Themes: Transportation, Materials, and Services

The evidence continues to suggest that value remains leadership and we recommend adding exposure to cyclical value on this minor pullback in the...

Vermilion Research

MS-South Korea Index Earning Revision (Jun): Samsung Electronics, HANKOOK TIRE & TECHNOLOGY, KAL

We analyzed MS-South Korea's consensus for Jun 2026 and highlighted changes of EPS in Samsung Electronics, HANKOOK TIRE & TECHNOLOGY, DB INSURANCE,...

Ke Yan, CFA, FRM

Trip.com Q126 Results | Strong Top-Line, Lower Margins | Ongoing Investigation To Hit Growth in Q226

Q126 saw strong revenue growth and some margin erosion. More importantly, weak Q226 guidance appears to highlight the heavy impact an ongoing...

Tracking Traffic

Korea Stock Market Monthly Recap #48 (May 2020)

Review of Top 10 Issues Related to Korean stock market, economy, & politics in May 2020 Big interest in SK Biopharm IPO Announcements of IPOs...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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