Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>After the market close on 22 December, Hanssem Co Ltd (009240 KS) announced that it will cancel all of its 6.933 million treasury shares (29.5% of outstanding shares).</li>
<li>The fact that this share cancellation is a whopping 29.5% of outstanding shares is likely to result in a sharply higher share price for Hanssem in the next several days. </li>
<li>We believe that this massive treasury shares cancellation is likely to have a significantly positive impact on Hanssem's share price in the next several days/weeks.</li>
</ul>


After the market close on 22 December, Hanssem Co Ltd (009240 KS) announced that it will cancel all of its 6.933 million treasury shares (29.5% of outstanding shares).
The fact that this share cancellation is a whopping 29.5% of outstanding shares is likely to result in a sharply higher share price for Hanssem in the next several days. 
We believe that this massive treasury shares cancellation is likely to have a significantly positive impact on Hanssem's share price in the next several days/weeks.


Korea Small Cap Gem #51: Hanssem (Cancellation of 29.5% of Outstanding Shares)

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>Disclosure threshold drops from 5% to 1%, signaling stricter transparency, heavier penalties, and potential acceleration of buyback cancellations; new rules open for comment until November 5, effective Q4.</li>
<li>Near-Term, high-treasury, solid-ROE stocks could see short-term momentum as mandatory cancels and tighter disclosure mechanically lift EPS, driving flows and setting up potential short-term longs.</li>
<li>This sparks a new event-driven “disclosure schedule trading” setup, as 1%+ treasury holdings now trigger twice-yearly reports and six-month follow-ups, boosting volatility around announcements.</li>
</ul>


Disclosure threshold drops from 5% to 1%, signaling stricter transparency, heavier penalties, and potential acceleration of buyback cancellations; new rules open for comment until November 5, effective Q4.
Near-Term, high-treasury, solid-ROE stocks could see short-term momentum as mandatory cancels and tighter disclosure mechanically lift EPS, driving flows and setting up potential short-term longs.
This sparks a new event-driven “disclosure schedule trading” setup, as 1%+ treasury holdings now trigger twice-yearly reports and six-month follow-ups, boosting volatility around announcements.


FSS Just Announced: Treasury Disclosure Threshold Cut to 1% — Trading Highlights

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 analyzed the changes in short interest of KRX stocks as of Oct 17th. The aggregated short interest was USD11.9bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in KorZinc, Samsung Electronics, ECOPRO, SK Hynix, ECOPROBM.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Oct 17th. The aggregated short interest was USD11.9bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in KorZinc, Samsung Electronics, ECOPRO, SK Hynix, ECOPROBM.


KRX Short Interest Weekly (Oct 17th): KorZinc, Samsung Electronics, ECOPRO, SK Hynix, ECOPROBM

Pan-Asia Tactical Market Calls (Quant-Driven), MRM Research

Nico Rosti

Pan-Asia Tactical Market Calls (Quant-Driven)

MRM Research

Quantitative Research

Equity Derivatives

Korea Stock Exchange KOSPI 200 / Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/profiles/sanghyun-park" target="_blank" data-smartkarma-citation="accounts:354" rel="noopener">Sanghyun Park</a> recently posted a comprehensive insight regarding South Korea's move toward forcing firms to cancel treasury shares. I invite you to read it if you haven't yet.</li>
<li>The <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> index passive flows will probably be deeply impacted by this legal reform, we could see this happening soon, before the December KOSPI 200 reshuffle.</li>
<li>Since funds moves could start any time, here is a quantitative-model-based analysis of the most probable trends, with a short-term focus (next 3-4 weeks).</li>
</ul>



Sanghyun Park recently posted a comprehensive insight regarding South Korea's move toward forcing firms to cancel treasury shares. I invite you to read it if you haven't yet.
The KOSPI 200 index passive flows will probably be deeply impacted by this legal reform, we could see this happening soon, before the December KOSPI 200 reshuffle.
Since funds moves could start any time, here is a quantitative-model-based analysis of the most probable trends, with a short-term focus (next 3-4 weeks).


KOSPI 200 Tactical Outlook As Treasury Share Cancellations Impact Passive Flows

<ul>
<li>KRX may preemptively adjust KOSPI 200 screening, switching from full market cap to market cap excluding treasury shares for index inclusion.</li>
<li>With treasury-share cancellation likely this quarter, KRX may act before June ’26. For December KOSPI 200, we should run both full-cap and ex-treasury screens; flows could behave unusually.</li>
<li>Focusing on Hanssem (009240 KS) and Taekwang (003240 KS); borderline, high treasury shares, potential KOSPI 200 exclusion, making them key flow-sensitive setups for December reshuffle.</li>
</ul>


KRX may preemptively adjust KOSPI 200 screening, switching from full market cap to market cap excluding treasury shares for index inclusion.
With treasury-share cancellation likely this quarter, KRX may act before June ’26. For December KOSPI 200, we should run both full-cap and ex-treasury screens; flows could behave unusually.
Focusing on Hanssem (009240 KS) and Taekwang (003240 KS); borderline, high treasury shares, potential KOSPI 200 exclusion, making them key flow-sensitive setups for December reshuffle.


Korea’s Mandatory Treasury Share Cancellation Situation Creates New Passive Flow Dynamics

South Korea

Hanssem Co., Ltd. manufactures kitchen furniture.  The Company's products include kitchen sinks, kitchen cabinets, dining tables and chairs, and kitchen accessories.  Hanssem also designs and manufactures interior products, such as sofas, bedsteads, closets, drawers, lamps, bathroom and office furniture.

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Hanssem Co Ltd (009240 KS)

Korea Small Cap Gem #51: Hanssem (Cancellation of 29.5% of Outstanding Shares)

After the market close on 22 December, Hanssem Co Ltd (009240 KS) announced that it will cancel all of its 6.933 million treasury shares (29.5% of...

Douglas Kim

FSS Just Announced: Treasury Disclosure Threshold Cut to 1% — Trading Highlights

The FSS just announced a significant rule change, lowering the treasury disclosure holdings threshold from 5% to 1%, creating new implications for...

Sanghyun Park

KRX Short Interest Weekly (Oct 17th): KorZinc, Samsung Electronics, ECOPRO, SK Hynix, ECOPROBM

We analyzed KRX short interest report for the past week and highlighted short interest changes in KorZinc, Samsung Electronics, ECOPRO, SK Hynix,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Korea Small Cap Gem #51: Hanssem (Cancellation of 29.5% of Outstanding Shares)

After the market close on 22 December, Hanssem Co Ltd (009240 KS) announced that it will cancel all of its 6.933 million treasury shares (29.5% of...

Douglas Kim

FSS Just Announced: Treasury Disclosure Threshold Cut to 1% — Trading Highlights

The FSS just announced a significant rule change, lowering the treasury disclosure holdings threshold from 5% to 1%, creating new implications for...

Sanghyun Park

KRX Short Interest Weekly (Oct 17th): KorZinc, Samsung Electronics, ECOPRO, SK Hynix, ECOPROBM

We analyzed KRX short interest report for the past week and highlighted short interest changes in KorZinc, Samsung Electronics, ECOPRO, SK Hynix,...

Ke Yan, CFA, FRM

KOSPI 200 Tactical Outlook As Treasury Share Cancellations Impact Passive Flows

​South Korea's move to cancel treasury shares may impact KOSPI 200 index passive flows, with potential changes before the December reshuffle....

Nico Rosti

Korea’s Mandatory Treasury Share Cancellation Situation Creates New Passive Flow Dynamics

This post examines Korea’s mandatory treasury share cancellation situation and its potential to trigger new passive flow dynamics, especially in...

Sanghyun Park

South Korea's move to cancel treasury shares may impact KOSPI 200 index passive flows, with potential changes before the December reshuffle....