Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

<ul>
<li>Korea banned all short selling in March 2020 and resumed short selling only on <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150</a> index constituents in May 2021.</li>
<li>News reports indicate that there could be another short sell ban as soon as the coming week. Indications are that the ban could last 6 months.</li>
<li>There are many implications of a total short sell ban including futures backwardation, market manipulation, and no emerging to developed market promotion.</li>
</ul>


Korea banned all short selling in March 2020 and resumed short selling only on KOSPI 200 and KOSDAQ 150 index constituents in May 2021.
News reports indicate that there could be another short sell ban as soon as the coming week. Indications are that the ban could last 6 months.
There are many implications of a total short sell ban including futures backwardation, market manipulation, and no emerging to developed market promotion.


Korea Short Sell Ban: Background, Manipulation, Holdings, Flows, Short Interest, Implications

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Korea Zinc announced that at its upcoming AGM agenda, it will include several measures (several of which have been recommended by MBK/Young Poong alliance) to improve corporate governance.</li>
<li>There have been some resistance on implementing these measures in the past year by Korea Zinc. Therefore, the approval of these measures are likely to positively impact Korea Zinc.</li>
<li>Korea Zinc plans to cancel half of its treasury shares and use the remainder for employee performance compensation over the next 10 years.</li>
</ul>


Korea Zinc announced that at its upcoming AGM agenda, it will include several measures (several of which have been recommended by MBK/Young Poong alliance) to improve corporate governance.
There have been some resistance on implementing these measures in the past year by Korea Zinc. Therefore, the approval of these measures are likely to positively impact Korea Zinc.
Korea Zinc plans to cancel half of its treasury shares and use the remainder for employee performance compensation over the next 10 years.


Korea Zinc's Plans to Improve Corporate Governance at AGM

Equity Capital Markets

<ul>
<li>On 15 December, Korea Zinc (010130 KS) announced a large scale third party capital raise of 2.85 trillion won (US$2.2 billion). </li>
<li>Korea Zinc plans to issue 2.21 million new common shares (11.4% of current outstanding shares) at the issue price of 1,291,330 won per share (22.7% lower than current price).</li>
<li><em><strong>Korea Zinc announced a strategic partnership with the U.S. government and U.S.-based defense contractors to invest approximately 11 trillion won (US$7.4 billion) in constructing a critical minerals smelter in Tennessee, U.S. </strong></em></li>
</ul>


On 15 December, Korea Zinc (010130 KS) announced a large scale third party capital raise of 2.85 trillion won (US$2.2 billion). 
Korea Zinc plans to issue 2.21 million new common shares (11.4% of current outstanding shares) at the issue price of 1,291,330 won per share (22.7% lower than current price).
Korea Zinc announced a strategic partnership with the U.S. government and U.S.-based defense contractors to invest approximately 11 trillion won (US$7.4 billion) in constructing a critical minerals smelter in Tennessee, U.S. 


Korea Zinc Announces a Third Party Capital Raise of 2.9 Trillion Won & 11 Trillion Won US Investment

Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>US-Backed US$7.4bn smelter embeds Korea Zinc in US critical-minerals supply chains, lifting long-term strategic relevance and valuation floor.</li>
<li>Shares eased after an initial spike as dilution, low JV ownership, governance litigation risk, and long-dated cash flows weighed on near-term sentiment.</li>
<li>We retain a ₩2.1m TP (~30% upside), supported by TC recovery, rare-metals margins, buybacks, and partial governance-discount compression.</li>
</ul>


US-Backed US$7.4bn smelter embeds Korea Zinc in US critical-minerals supply chains, lifting long-term strategic relevance and valuation floor.
Shares eased after an initial spike as dilution, low JV ownership, governance litigation risk, and long-dated cash flows weighed on near-term sentiment.
We retain a ₩2.1m TP (~30% upside), supported by TC recovery, rare-metals margins, buybacks, and partial governance-discount compression.


Korea Zinc: US-Backed Smelter Lifts Strategic Floor; Dilution & Control Risks Weighed

<ul>
<li>US government–linked investment in a planned US smelter JV materially lifts Korea Zinc’s long-term strategic relevance and downside valuation floor, even though project cash flows are long-dated and execution-heavy.</li>
<li>Near–medium term earnings remain supported by zinc TC recovery, structurally higher rare-metals margins (led by antimony and germanium), and treasury-share cancellations, driving improved EPS visibility.</li>
<li>We raise our target price to ₩2.1m, reflecting partial governance-discount compression and a higher strategic multiple, while maintaining conservative assumptions on timing and returns.</li>
</ul>


US government–linked investment in a planned US smelter JV materially lifts Korea Zinc’s long-term strategic relevance and downside valuation floor, even though project cash flows are long-dated and execution-heavy.
Near–medium term earnings remain supported by zinc TC recovery, structurally higher rare-metals margins (led by antimony and germanium), and treasury-share cancellations, driving improved EPS visibility.
We raise our target price to ₩2.1m, reflecting partial governance-discount compression and a higher strategic multiple, while maintaining conservative assumptions on timing and returns.


Korea Zinc: US Government–Linked JV Raises Strategic Valuation Floor; TP to ₩2.1m

South Korea

Korea Zinc Co., Ltd. specializes in non-ferrous metal smelting industry.  The Company manufactures zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper.  Korea Zinc provides its products to domestic and overseas markets.

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Korea Zinc (010130 KS)

Korea Short Sell Ban: Background, Manipulation, Holdings, Flows, Short Interest, Implications

Media reports indicate that there could be a temporary short sell ban in Korea. This could lead to futures backwardation, market manipulation and a...

Brian Freitas

Korea Zinc's Plans to Improve Corporate Governance at AGM

Korea Zinc announced that at its upcoming AGM agenda, it will include several measures (several of which have been recommended by MBK/Young Poong...

Douglas Kim

Korea Zinc Announces a Third Party Capital Raise of 2.9 Trillion Won & 11 Trillion Won US Investment

On 6 January, it was disclosed that Crucible JV now owns a 2.2mn shares (10.59% stake) in Korea Zinc (010130 KS). This comes just 22 days after...

Douglas Kim

Korea Zinc: US-Backed Smelter Lifts Strategic Floor; Dilution & Control Risks Weighed

Korea Zinc's US-backed smelter investment boosts strategic importance and valuation, but near-term concerns weigh on sentiment. Analysts maintain...

Rahul Jain

Korea Zinc: US Government–Linked JV Raises Strategic Valuation Floor; TP to ₩2.1m

US government investment in US smelter JV boosts Korea Zinc's strategic importance and valuation, with near-term earnings supported by zinc TC...

Rahul Jain

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Korea Short Sell Ban: Background, Manipulation, Holdings, Flows, Short Interest, Implications

Media reports indicate that there could be a temporary short sell ban in Korea. This could lead to futures backwardation, market manipulation and a...

Brian Freitas

Korea Zinc's Plans to Improve Corporate Governance at AGM

Korea Zinc announced that at its upcoming AGM agenda, it will include several measures (several of which have been recommended by MBK/Young Poong...

Douglas Kim

Korea Zinc Announces a Third Party Capital Raise of 2.9 Trillion Won & 11 Trillion Won US Investment

On 6 January, it was disclosed that Crucible JV now owns a 2.2mn shares (10.59% stake) in Korea Zinc (010130 KS). This comes just 22 days after...

Douglas Kim

Korea Zinc: US-Backed Smelter Lifts Strategic Floor; Dilution & Control Risks Weighed

​Korea Zinc's US-backed smelter investment boosts strategic importance and valuation, but near-term concerns weigh on sentiment. Analysts maintain...

Rahul Jain

Korea Zinc: US Government–Linked JV Raises Strategic Valuation Floor; TP to ₩2.1m

​US government investment in US smelter JV boosts Korea Zinc's strategic importance and valuation, with near-term earnings supported by zinc TC...

Rahul Jain

Korea Zinc's US-backed smelter investment boosts strategic importance and valuation, but near-term concerns weigh on sentiment. Analysts maintain...

US government investment in US smelter JV boosts Korea Zinc's strategic importance and valuation, with near-term earnings supported by zinc TC...