Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

Korea Aerospace Industries / Event-Driven

<ul>
<li>Hanwha Aerospace (012450 KS) announced that it acquired additional 100,000 shares (0.1%) of Korea Aerospace Industries (047810 KS), raising Hanwha Group's stake in KAI to 5.09% (from 4.99% previously). </li>
<li>Hanwha Aerospace plans to continue purchasing KAI shares by the end of this year, investing 500 billion won (representing about 2.85% of outstanding shares). </li>
<li>This is likely to have a greater beneficial impact on KAI because there will be more buying of its KAI by Hanwha Aerospace, boosting KAI's share price. </li>
</ul>


Hanwha Aerospace (012450 KS) announced that it acquired additional 100,000 shares (0.1%) of Korea Aerospace Industries (047810 KS), raising Hanwha Group's stake in KAI to 5.09% (from 4.99% previously). 
Hanwha Aerospace plans to continue purchasing KAI shares by the end of this year, investing 500 billion won (representing about 2.85% of outstanding shares). 
This is likely to have a greater beneficial impact on KAI because there will be more buying of its KAI by Hanwha Aerospace, boosting KAI's share price. 


Hanwha Aerospace: To Purchase 500 Billion Won Worth of More KAI Shares: Step 2 of Privatization?

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

MSCI Emerging Markets Index / Technical Analysis

Notable themes:<ul><li>
Sector leadership is concentrated. The MSCI EM Index’s YTD advance, which is pushing through to all-time highs, is driven primary by tech. This sector accounts for a 26% weighting in the Index, and it is the only sector trading at 12-month relative strength highs. That’s the rear-view mirror take. What’s the technical outlook for tech? We remain overweight, keeping in mind the sector is ripe for a pause/correction (based on how far it is trading above its 200-day MA). Long-term…</li></ul>

Notable themes:
Sector leadership is concentrated. The MSCI EM Index’s YTD advance, which is pushing through to all-time highs, is driven primary by tech. This sector accounts for a 26% weighting in the Index, and it is the only sector trading at 12-month relative strength highs. That’s the rear-view mirror take. What’s the technical outlook for tech? We remain overweight, keeping in mind the sector is ripe for a pause/correction (based on how far it is trading above its 200-day MA). Long-term…

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>If you like <a href="https://www.smartkarma.com/entities/toyota-industries-corp" target="_blank" data-smartkarma-citation="entities:4500:1" rel="noopener">Toyota Industries (6201 JP)</a>'s Appraisal Rights case, buy. If a LO investor who held until now and bullish the market, sell now and replace your beta.</li>
<li>Current NAV levels for <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus NV (PRX NA)</a> are somewhat depressed. To a lesser extent, so is the implied stub (netting off the stake in <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>).</li>
<li>China has established itself as the global EVs benchmark. But  expect increased competition, overcapacity, and in turn, profit squeeze. <a href="https://www.smartkarma.com/entities/dongfeng-motor-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:910:1" rel="noopener">Dongfeng Motor (489 HK)</a>is trading full ahead of VOYAH's spin-off.</li>
</ul>


If you like Toyota Industries (6201 JP)'s Appraisal Rights case, buy. If a LO investor who held until now and bullish the market, sell now and replace your beta.
Current NAV levels for Prosus NV (PRX NA) are somewhat depressed. To a lesser extent, so is the implied stub (netting off the stake in Tencent (700 HK)).
China has established itself as the global EVs benchmark. But  expect increased competition, overcapacity, and in turn, profit squeeze. Dongfeng Motor (489 HK)is trading full ahead of VOYAH's spin-off.


Last Week In Event SPACE: Toyota Inds., Prosus/Tencent, Dongfeng Motor, WH Group

<ul>
<li>Several local media outlets have mentioned that Poongsan Corp (103140 KS) (market cap of 3.1 trillion won) may be up for sale.</li>
<li>Major domestic defense companies including Hanwha Aerospace (012450 KS), LIG Nex1 Co (079550 KS), and Hyundai Rotem Company (064350 KS) are potential candidates to purchase Poongsan's defense business. </li>
<li>Our NAV analysis of Poongsan Holdings suggests implied NAV per share of 51,094 won, representing an 35.5% upside versus current price.</li>
</ul>


Several local media outlets have mentioned that Poongsan Corp (103140 KS) (market cap of 3.1 trillion won) may be up for sale.
Major domestic defense companies including Hanwha Aerospace (012450 KS), LIG Nex1 Co (079550 KS), and Hyundai Rotem Company (064350 KS) are potential candidates to purchase Poongsan's defense business. 
Our NAV analysis of Poongsan Holdings suggests implied NAV per share of 51,094 won, representing an 35.5% upside versus current price.


Poongsan Holdings NAV Analysis & A Potential Sale of Controlling Stake in Poongsan Corp?

<ul>
<li>After the market close on 23 February, it was announced that Crescendo Equity Partners plans to conduct another block deal sale of a 9.05% stake in HPSP (403870 KS). </li>
<li>We would take the deal mainly due to the solid business fundamentals of HPSP, attractive block deal discount, ongoing bullish cycle of the global semiconductor sector, and reasonable valuations.</li>
<li>Despite concerns about further sale overhang by Crescendo, HPSP's share price is up 31% YTD, bolstered by the continued strong demand for the AI driven semiconductor chips.</li>
</ul>


After the market close on 23 February, it was announced that Crescendo Equity Partners plans to conduct another block deal sale of a 9.05% stake in HPSP (403870 KS). 
We would take the deal mainly due to the solid business fundamentals of HPSP, attractive block deal discount, ongoing bullish cycle of the global semiconductor sector, and reasonable valuations.
Despite concerns about further sale overhang by Crescendo, HPSP's share price is up 31% YTD, bolstered by the continued strong demand for the AI driven semiconductor chips.


Additional Block Deal Sale of a 9.1% Stake in HPSP by Crescendo Equity Partners

South Korea

Poongsan Corporation manufactures non-ferrous metal and defense-related products.  The Company also makes coin blanks, cans, stainless steel strips, lead frame alloys, tin plated strips, bars, and rods & wires.  It also produces precision products such as lead frames for semiconductors, machinery, and dies & gauges.

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Poongsan Corp (103140 KS)

Hanwha Aerospace: To Purchase 500 Billion Won Worth of More KAI Shares: Step 2 of Privatization?

Hanwha Aerospace plans to continue purchasing KAI shares by the end of this year, investing 500 billion won (representing about 2.85% of...

Douglas Kim

EM Leadership Screen & Chart Book

Notable themes: Sector leadership is concentrated. The MSCI EM Index’s YTD advance, which is pushing through to all-time highs, is driven primary...

Vermilion Research

Last Week In Event SPACE: Toyota Inds., Prosus/Tencent, Dongfeng Motor, WH Group

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Poongsan Holdings NAV Analysis & A Potential Sale of Controlling Stake in Poongsan Corp?

Several local media outlets have mentioned that Poongsan Corp (103140 KS) (market cap of 3.1 trillion won) may be up for sale.

Douglas Kim

Additional Block Deal Sale of a 9.1% Stake in HPSP by Crescendo Equity Partners

After the market close on 23 February, it was announced that Crescendo Equity Partners plans to conduct another block deal sale of a 9.05% stake in...

Douglas Kim

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