Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of MSCI 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 ORION, KEPCO, LG Energy Solution, ECOPROBM, NAVER, Samsung Elec (PREF), KIA, LG Chem, Naver, Korea Electric Power, Samsung Electronics Non Voting Pre, Kia, Orion.</li>
</ul>


We analysed the earning revision of component stocks of MSCI 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 ORION, KEPCO, LG Energy Solution, ECOPROBM, NAVER, Samsung Elec (PREF), KIA, LG Chem, Naver, Korea Electric Power, Samsung Electronics Non Voting Pre, Kia, Orion.


MSCI South Korea Index Earning Revision (Nov): ORION, KEPCO, LG Energy Solution, ECOPROBM, NAVER

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 21 January, there was an important legal court decision to disallow the appointment of directors using the cumulative voting system at the Korea Zinc's EGM on 23 January.</li>
<li>This legal decision is likely to favor MBK/Young Poong alliance in the control of Korea Zinc. The market increasingly favors the likelihood of MBK/Young Poong alliance winning this proxy battle.</li>
<li>Therefore, the chance of a further M&amp;A battle has been reduced which is likely to further decline in the share price of Korea Zinc. </li>
</ul>


On 21 January, there was an important legal court decision to disallow the appointment of directors using the cumulative voting system at the Korea Zinc's EGM on 23 January.
This legal decision is likely to favor MBK/Young Poong alliance in the control of Korea Zinc. The market increasingly favors the likelihood of MBK/Young Poong alliance winning this proxy battle.
Therefore, the chance of a further M&amp;A battle has been reduced which is likely to further decline in the share price of Korea Zinc. 


Korea Zinc: An Important Legal Decision to Disallow Appointment of Directors Using Cumulative Voting

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>NPS’s stake has dropped, and most minority shareholders are passive. NPS might oppose cumulative voting, so Choi’s chances of getting 67% support at the EGM on the 23rd are slim.</li>
<li>The showdown is between MBK’s 14 picks and Choi’s 7. Without cumulative voting, even with NPS’s shares, Choi’s chances of beating MBK are slim.</li>
<li>If you’re short on Korea Zinc, holding seems fine. Backwardation in Jan-Feb futures isn’t steep, so a new position before the EGM could also be worth a shot.</li>
</ul>


NPS’s stake has dropped, and most minority shareholders are passive. NPS might oppose cumulative voting, so Choi’s chances of getting 67% support at the EGM on the 23rd are slim.
The showdown is between MBK’s 14 picks and Choi’s 7. Without cumulative voting, even with NPS’s shares, Choi’s chances of beating MBK are slim.
If you’re short on Korea Zinc, holding seems fine. Backwardation in Jan-Feb futures isn’t steep, so a new position before the EGM could also be worth a shot.


NPS Stake in Korea Zinc Revealed: EGM Vote Locked, Short Play in Focus

<ul>
<li>Chairman Choi has proposed a cumulative voting system which is one of the agenda items to be discussed and voted upon at the EGM on 23 January. </li>
<li>There is likely to be continued uncertainty about proxy voting, including whether or not Korea Zinc could use cumulative voting system for Chairman Choi to retain control of the company. </li>
<li>On 23 December, Korea Zinc (010130 KS) announced that it will propose a 10 to 1 stock split on the next EGM scheduled for 23 January 2025.</li>
</ul>


Chairman Choi has proposed a cumulative voting system which is one of the agenda items to be discussed and voted upon at the EGM on 23 January. 
There is likely to be continued uncertainty about proxy voting, including whether or not Korea Zinc could use cumulative voting system for Chairman Choi to retain control of the company. 
On 23 December, Korea Zinc (010130 KS) announced that it will propose a 10 to 1 stock split on the next EGM scheduled for 23 January 2025.


Korea Zinc: Cumulative Voting System and 10 to 1 Stock Split

<ul>
<li>The EGM for Korea Zinc (010130 KS) is expected to be held on 23 January 2025. Accordingly, the shareholder registry is expected to be closed around 19 - 23 December. </li>
<li>By better analyzing the timeline of the M&amp;A of SM Entertainment, we may be able to get better clues to Korea Zinc's price movement in the next several weeks. </li>
<li>Notice the double top share price formation of SM Entertainment in 2023 versus the potential double top formation of Korea Zinc in 2024. These trading formations look eerily similar.</li>
</ul>


The EGM for Korea Zinc (010130 KS) is expected to be held on 23 January 2025. Accordingly, the shareholder registry is expected to be closed around 19 - 23 December. 
By better analyzing the timeline of the M&amp;A of SM Entertainment, we may be able to get better clues to Korea Zinc's price movement in the next several weeks. 
Notice the double top share price formation of SM Entertainment in 2023 versus the potential double top formation of Korea Zinc in 2024. These trading formations look eerily similar.


A Comparison of Korea Zinc's M&A in 2024 Vs SM Entertainment's M&A in 2023 in the 9th Inning

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)

MSCI South Korea Index Earning Revision (Nov): ORION, KEPCO, LG Energy Solution, ECOPROBM, NAVER

We analyzed MSCI South Korea's consensus for Nov 2025 and highlighted changes of EPS in ORION (271560 KS), KEPCO (015760 KS), LG Energy Solution...

Ke Yan, CFA, FRM

Korea Zinc: An Important Legal Decision to Disallow Appointment of Directors Using Cumulative Voting

On 21 January, there was an important legal court decision to disallow the appointment of directors using the cumulative voting system at the Korea...

Douglas Kim

NPS Stake in Korea Zinc Revealed: EGM Vote Locked, Short Play in Focus

NPS backed cumulative voting and the director cap at Korea Zinc’s EGM. This is a win for Choi, and the pop today likely came from the news leaking...

Sanghyun Park

Korea Zinc: Cumulative Voting System and 10 to 1 Stock Split

National Pension Service (NPS) reduced its stake in Korea Zinc from 7.49% to 4.51%, according to FSS. NPS sold some of its shares (0.63 million...

Douglas Kim

A Comparison of Korea Zinc's M&A in 2024 Vs SM Entertainment's M&A in 2023 in the 9th Inning

December 18th is the last day to secure voting rights for Korea Zinc. MBK claims intrinsic value of Korea Zinc is 14 trillion won (680,000 won per...

Douglas Kim

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