Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>On 23 September, Hankyung Business Daily reported that Kcc Corp (002380 KS) plans to issue about 430 billion won worth of exchangeable bonds (EB) based on its own treasury shares.</li>
<li>We believe the overall impact on this EB issue on KCC is likely to be more negative as compared to the EB issue it conducted in July 2025. </li>
<li>Our NAV valuation of KCC Corp suggests NAV per share of 508,467 won, which is 22% higher than current price.</li>
</ul>


On 23 September, Hankyung Business Daily reported that Kcc Corp (002380 KS) plans to issue about 430 billion won worth of exchangeable bonds (EB) based on its own treasury shares.
We believe the overall impact on this EB issue on KCC is likely to be more negative as compared to the EB issue it conducted in July 2025. 
Our NAV valuation of KCC Corp suggests NAV per share of 508,467 won, which is 22% higher than current price.


KCC Corp - To Issue 430 Billion Won in EB Using Its Treasury Shares?

Equity Bottom-Up

<ul>
<li>In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (29 August to 12 September 2025).</li>
<li>Shipbuilding remained the best performing sector in the past two weeks. Rechargeable battery was the worst performing sector. </li>
<li>Top 10 picks in this bi-weekly include KCC Corp, KT&amp;G, LG Uplus, Samsung Life Insurance, Paradise, Nongshim, LG Chem, HD Hyundai Mipo, SK Inc, and CJ Corp. </li>
</ul>


In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (29 August to 12 September 2025).
Shipbuilding remained the best performing sector in the past two weeks. Rechargeable battery was the worst performing sector. 
Top 10 picks in this bi-weekly include KCC Corp, KT&amp;G, LG Uplus, Samsung Life Insurance, Paradise, Nongshim, LG Chem, HD Hyundai Mipo, SK Inc, and CJ Corp. 


Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (29 August to 12 September 2025)

Event-Driven

<ul>
<li>KCC announced that it is issuing an EB worth $625 million in foreign currency using its stake in HD Korea Shipbuilding &amp; Offshore Engineering as the underlying asset. </li>
<li>The asset that is used as the underlying asset for the EB is 2.056 million shares of HD Korea Shipbuilding &amp; Offshore Engineering held by the KCC Corp</li>
<li>We believe this large EB issue by KCC Corp is likely to have a positive impact on KCC Corp but slightly negative impact on HD KSOE.</li>
</ul>


KCC announced that it is issuing an EB worth $625 million in foreign currency using its stake in HD Korea Shipbuilding &amp; Offshore Engineering as the underlying asset. 
The asset that is used as the underlying asset for the EB is 2.056 million shares of HD Korea Shipbuilding &amp; Offshore Engineering held by the KCC Corp
We believe this large EB issue by KCC Corp is likely to have a positive impact on KCC Corp but slightly negative impact on HD KSOE.


KCC Corp: EB Issue of $625 Million Of HD KSOE + KCC Corp and KCC Glass Share Swaps

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Listed companies trading below 0.8x P/B may be taxed like unlisted ones—based on book value, with a floor set at 80% of NAV regardless of calculated valuation.</li>
<li>Momentum is spreading beyond holdcos, with local desks eyeing low-PBR, high treasury share names. Attached is an Excel with Q1 PBRs and Q4 treasury ratios for all listed stocks.</li>
<li>We could target direct succession names like SK Inc. or go broader, screening by treasury share % and P/B discount—likely the preferred route given Korea’s post-election momentum playbook.</li>
</ul>


Listed companies trading below 0.8x P/B may be taxed like unlisted ones—based on book value, with a floor set at 80% of NAV regardless of calculated valuation.
Momentum is spreading beyond holdcos, with local desks eyeing low-PBR, high treasury share names. Attached is an Excel with Q1 PBRs and Q4 treasury ratios for all listed stocks.
We could target direct succession names like SK Inc. or go broader, screening by treasury share % and P/B discount—likely the preferred route given Korea’s post-election momentum playbook.


PBR 0.8x Law — What Is It, and Why Might It Spark a Classic Post-Election Korea Momentum Trade?

<ul>
<li>Kcc Corp (002380 KS) is considering on issuing an overseas exchangeable bond (EB) for its 10% stake in Samsung C&amp;T (028260 KS).</li>
<li>KCC is the second largest shareholder of Samsung C&amp;T with a 10% stake in the company which is worth 2 trillion won (US$1.4 billion).</li>
<li>Our NAV valuation of KCC Corp suggests NAV per share of 332,947 won, which is 27% higher than current price.</li>
</ul>


Kcc Corp (002380 KS) is considering on issuing an overseas exchangeable bond (EB) for its 10% stake in Samsung C&amp;T (028260 KS).
KCC is the second largest shareholder of Samsung C&amp;T with a 10% stake in the company which is worth 2 trillion won (US$1.4 billion).
Our NAV valuation of KCC Corp suggests NAV per share of 332,947 won, which is 27% higher than current price.


KCC Corp: Considering on Issuing an Overseas EB for Its 10% Stake in Samsung C&T

South Korea

KCC Corp, manufactures paint & related product, building materials such as cement corrugated sheet, glass wool mat, and board & pipe cover, PVC window profile, paints, and ceramic fiber for high temperature applications. The Company also produces various glasses such as glass fiber, float glass, patterned glass, safety tempered glass, and long glass fibers.

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Kcc Corp (002380 KS)

KCC Corp - To Issue 430 Billion Won in EB Using Its Treasury Shares?

On 23 September, Hankyung Business Daily reported that Kcc Corp (002380 KS) plans to issue about 430 billion won worth of exchangeable bonds (EB)...

Douglas Kim

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (29 August to 12 September 2025)

In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (29 August to 12 September 2025).

Douglas Kim

PBR 0.8x Law — What Is It, and Why Might It Spark a Classic Post-Election Korea Momentum Trade?

This post breaks down what the PBR 0.8x law actually is, why it matters for Korean equities, and how it fits into the classic post-election...

Sanghyun Park

KCC Corp: Considering on Issuing an Overseas EB for Its 10% Stake in Samsung C&T

Kcc Corp (002380 KS) is considering on issuing an overseas exchangeable bond (EB) for its 10% stake in Samsung C&T (028260 KS).

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KCC Corp - To Issue 430 Billion Won in EB Using Its Treasury Shares?

On 23 September, Hankyung Business Daily reported that Kcc Corp (002380 KS) plans to issue about 430 billion won worth of exchangeable bonds (EB)...

Douglas Kim

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (29 August to 12 September 2025)

In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (29 August to 12 September 2025).

Douglas Kim

KCC Corp: EB Issue of $625 Million Of HD KSOE + KCC Corp and KCC Glass Share Swaps

KCC announced that it is issuing an EB worth $625 million in foreign currency using its stake in HD Korea Shipbuilding & Offshore Engineering as...

Douglas Kim

PBR 0.8x Law — What Is It, and Why Might It Spark a Classic Post-Election Korea Momentum Trade?

This post breaks down what the PBR 0.8x law actually is, why it matters for Korean equities, and how it fits into the classic post-election...

Sanghyun Park

KCC Corp: Considering on Issuing an Overseas EB for Its 10% Stake in Samsung C&T

Kcc Corp (002380 KS) is considering on issuing an overseas exchangeable bond (EB) for its 10% stake in Samsung C&T (028260 KS).

Douglas Kim