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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<ul>
<li>The announced changes are exactly in line with our forecasts with one change each for the Secondary Battery, Bio and Game Index. There are three changes to the Internet Index.</li>
<li>There are two changes to the BBIG Index with <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> replacing <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> and <a href="https://www.smartkarma.com/entities/afreecatv-co-ltd" target="_blank" data-smartkarma-citation="entities:20163:1" rel="noopener">AfreecaTV (067160 KS)</a> replacing <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a>. </li>
<li>The largest buying impact will be on <a href="https://www.smartkarma.com/entities/afreecatv-co-ltd" target="_blank" data-smartkarma-citation="entities:20163:1" rel="noopener">AfreecaTV (067160 KS)</a> while the largest selling impact will be on <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a>, <a href="https://www.smartkarma.com/entities/soulbrain-co-ltd-4208cf78-7fa9-4449-af35-bd0bde9d4726" target="_blank" data-smartkarma-citation="entities:35407:1" rel="noopener">Soulbrain (357780)</a> and <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a>.</li>
</ul>


The announced changes are exactly in line with our forecasts with one change each for the Secondary Battery, Bio and Game Index. There are three changes to the Internet Index.
There are two changes to the BBIG Index with LG Energy Solution (373220 KS) replacing LG Chem Ltd (051910 KS) and AfreecaTV (067160 KS) replacing Douzone Bizon (012510 KS). 
The largest buying impact will be on AfreecaTV (067160 KS) while the largest selling impact will be on Douzone Bizon (012510 KS), Soulbrain (357780) and LG Chem Ltd (051910 KS).


KRX New Deal Index Rebalance: No Surprises as LG Chem Not Deleted from Battery Index

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>In the past week, it was announced that Tving, a leading local OTT service provider in Korea, received 250 billion won in investment, valuing it at about 2 trillion won.</li>
<li>Previous to this investment, Tving was last valued at 350 billion won in July 2021. In other words, Tving's value surged by nearly 6x in the past seven months. </li>
<li>Our NAV per share of CJ ENM suggests a target price of 185,824 won, representing a 43% upside from current levels. </li>
</ul>


In the past week, it was announced that Tving, a leading local OTT service provider in Korea, received 250 billion won in investment, valuing it at about 2 trillion won.
Previous to this investment, Tving was last valued at 350 billion won in July 2021. In other words, Tving's value surged by nearly 6x in the past seven months. 
Our NAV per share of CJ ENM suggests a target price of 185,824 won, representing a 43% upside from current levels. 


Tving: Value Surges by Nearly 6x to 2 Trillion Won in 7 Months - Impact on CJ ENM

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>The biggest story should be LG Chem's complete deletion from the entire indexes. It's been said locally that KRX finally decided to remove LG Chem from the battery index.</li>
<li>AfreecaTV and Douzone Bizon will have the largest passive impacts, +1.72x and -3.89x ADTVs. The Chunbo and SoulBrain combo also seems in a sweet spot for a quick long/short setup.</li>
<li>LG Energy's inflow should be at least 0.33x ADTV. Yes, LG Chem's outflow deserves special attention. The combined impact is 0.6x ADTV, enough to make a splash on the price.</li>
</ul>


The biggest story should be LG Chem's complete deletion from the entire indexes. It's been said locally that KRX finally decided to remove LG Chem from the battery index.
AfreecaTV and Douzone Bizon will have the largest passive impacts, +1.72x and -3.89x ADTVs. The Chunbo and SoulBrain combo also seems in a sweet spot for a quick long/short setup.
LG Energy's inflow should be at least 0.33x ADTV. Yes, LG Chem's outflow deserves special attention. The combined impact is 0.6x ADTV, enough to make a splash on the price.


KRX K-New Deal Rebalancing: Latest Weight/Flow Update & LG Chem's Complete Deletion

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<strong><a href="https://www.smartkarma.com/entities/sk-square-co-ltd" target="_blank" data-smartkarma-citation="entities:35264:1" rel="noopener">SK Square (402340 KS)</a></strong> was inexpensive after its November listing. Now it's even cheaper. </li>
<li>Preceding my comments on SK Square - and <strong><a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a></strong> - are the current setup/unwind tables for Asia-Pacific Holdcos. </li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



SK Square (402340 KS) was inexpensive after its November listing. Now it's even cheaper. 
Preceding my comments on SK Square - and LG Chem Ltd (051910 KS) - are the current setup/unwind tables for Asia-Pacific Holdcos. 
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: SK Square And LG Chem's Unjustified NAV Discounts

<ul>
<li>FnGuide Battery Index overlaps with the rebalancing of the KRX K-New Deal. K-New Deal is March 11. As for FnGuide Battery, it will be three trading days on March 14-16.</li>
<li>Among the top-cap stocks, Samsung SDI will be the biggest beneficiary, and we need to consider a setup that utilizes Samsung SDI as a long/short partner for LG Chem.</li>
<li>LG Chem's staying significant distorts mid-caps' index weight in KRX Battery. The extent of passive outflows would be pretty substantial. So, outright short these mid-caps should deserve our attention.</li>
</ul>


FnGuide Battery Index overlaps with the rebalancing of the KRX K-New Deal. K-New Deal is March 11. As for FnGuide Battery, it will be three trading days on March 14-16.
Among the top-cap stocks, Samsung SDI will be the biggest beneficiary, and we need to consider a setup that utilizes Samsung SDI as a long/short partner for LG Chem.
LG Chem's staying significant distorts mid-caps' index weight in KRX Battery. The extent of passive outflows would be pretty substantial. So, outright short these mid-caps should deserve our attention.


FnGuide & KRX K-New Deal Batteries: Combined Passive Flows Preview on March 10-15

South Korea

LG Chem Ltd. is a chemical manufacturer.  The Company's products include petrochemicals, plastic resins, and engineering plastics.  LG Chem also produces industrial and electronic materials.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

LG Chem Ltd (051910 KS)

KRX New Deal Index Rebalance: No Surprises as LG Chem Not Deleted from Battery Index

There is one change each for the Secondary Battery, Bio and Game Index. There are three changes to the Internet Index. LG Chem has not been deleted...

Brian Freitas

Tving: Value Surges by Nearly 6x to 2 Trillion Won in 7 Months - Impact on CJ ENM

Tving, a leading local OTT service provider in Korea, received 250 billion won in investment, valuing it at about 2 trillion won. up from its...

Douglas Kim

KRX K-New Deal Rebalancing: Latest Weight/Flow Update & LG Chem's Complete Deletion

This post provides the latest update on the weight adjustments and flow estimations for the KRX K-New Deal Index rebalancing.

Sanghyun Park

StubWorld: SK Square And LG Chem's Unjustified NAV Discounts

Wide discounts in Korea are not uncommon. But SK Square has a strong parent/sub relationship. The holding in Hynix is worth 243% and 72% of SK...

David Blennerhassett

FnGuide & KRX K-New Deal Batteries: Combined Passive Flows Preview on March 10-15

This post estimates the combined passive flows of Korea's local battery stocks from the rebalancings of the FnGuide Battery Index and the KRX K-New...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)