Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>LS Electric, one of the major power equipment providers in Korea, became a new supplier of distribution board components to Elon Musk's xAI data centers in Memphis, Tennessee.</li>
<li>Some of the major electric utilities and other companies in the US have been reluctant to use electrical equipment products from China due to quality and security concerns.</li>
<li>Therefore, leading Korean companies such as LS Electric have been beneficiary of receiving more orders from the major US electrical utilities and other major companies in the US. </li>
</ul>


LS Electric, one of the major power equipment providers in Korea, became a new supplier of distribution board components to Elon Musk's xAI data centers in Memphis, Tennessee.
Some of the major electric utilities and other companies in the US have been reluctant to use electrical equipment products from China due to quality and security concerns.
Therefore, leading Korean companies such as LS Electric have been beneficiary of receiving more orders from the major US electrical utilities and other major companies in the US. 


LS Electric: Increasing Supplies for Distribution Board Components to Elon Musk's XAI Data Centers

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.

Event-Driven

<ul>
<li>Local hedge funds, mainly prop traders and PEs, drove the price action in LS Electric and Hyundai Rotem, and are now leading net buying in Samyang Foods and Hyundai Mipo.</li>
<li>Given the setup, it's likely Samyang Foods and HD Hyundai Mipo will follow a similar move until mid-January when screening starts, so we should stay aware of this backdrop.</li>
<li>This gives us a chance to capture upside. Plus, since Samyang Foods and Hyundai Mipo may pull back 30-40% post-screening, there’s also a solid opportunity during that dip.</li>
</ul>


Local hedge funds, mainly prop traders and PEs, drove the price action in LS Electric and Hyundai Rotem, and are now leading net buying in Samyang Foods and Hyundai Mipo.
Given the setup, it's likely Samyang Foods and HD Hyundai Mipo will follow a similar move until mid-January when screening starts, so we should stay aware of this backdrop.
This gives us a chance to capture upside. Plus, since Samyang Foods and Hyundai Mipo may pull back 30-40% post-screening, there’s also a solid opportunity during that dip.


LS Electric, Then Hyundai Rotem, Now Samyang Foods and Hyundai Mipo: Same Proactive Flow?

<ul>
<li>S&amp;P500 is up 27.7% YTD, outperforming KOSPI which is down 6.9% YTD. Global fund flow continues to pour into top quality US stocks such as Palantir, Tesla, and NVIDIA.</li>
<li>The top 20 best performing stocks in KOSPI 200 are up on average 106.8% YTD. However, the remaining 180 stocks in KOSPI 200 are down on average 9.2% YTD. </li>
<li>There is no large Palantir-like company that deals with AI/data analytics in Korea. However, large cap IT services and telcos in Korea are increasingly expanding their AI/data analytics related business.</li>
</ul>


S&amp;P500 is up 27.7% YTD, outperforming KOSPI which is down 6.9% YTD. Global fund flow continues to pour into top quality US stocks such as Palantir, Tesla, and NVIDIA.
The top 20 best performing stocks in KOSPI 200 are up on average 106.8% YTD. However, the remaining 180 stocks in KOSPI 200 are down on average 9.2% YTD. 
There is no large Palantir-like company that deals with AI/data analytics in Korea. However, large cap IT services and telcos in Korea are increasingly expanding their AI/data analytics related business.


A Comparison of KOSPI 200 and S&P 500 Companies Performances in 2024

<ul>
<li>In this insight, we review the major equity indices in Korea in 2024 including KOSPI 200 and Korea Value Up Index. </li>
<li>Some alpha generating performances continue in terms of adding stocks to be included in the KOSPI 200 and reducing stocks that could be excluded.</li>
<li>Korea Value Up Index has been heavily promoted by the Korean Exchange this year. Korea Exchange plans to make special changes to the Korea Value-Up Index constituents on 20 December. </li>
</ul>


In this insight, we review the major equity indices in Korea in 2024 including KOSPI 200 and Korea Value Up Index. 
Some alpha generating performances continue in terms of adding stocks to be included in the KOSPI 200 and reducing stocks that could be excluded.
Korea Value Up Index has been heavily promoted by the Korean Exchange this year. Korea Exchange plans to make special changes to the Korea Value-Up Index constituents on 20 December. 


A Review of Major Equity Indices in Korea in 2024

<ul>
<li>In this insight, we discuss stocks that are highlighted in the local media as potential inclusion and exclusion candidates in the KOSPI 200 rebalance in December 2024.</li>
<li>Stocks that are expected to be included in the KOSPI 200 index include Hyosung Heavy Industries, APR, Miwon Commercial, and OCI.</li>
<li>Stocks that have been discussed as the most likely exclusion candidates in the KOSPI 200 rebalance include Lotte Tour Development, MS Industrial, Young Poong, GC Holdings, and KG Donbu Steel. </li>
</ul>


In this insight, we discuss stocks that are highlighted in the local media as potential inclusion and exclusion candidates in the KOSPI 200 rebalance in December 2024.
Stocks that are expected to be included in the KOSPI 200 index include Hyosung Heavy Industries, APR, Miwon Commercial, and OCI.
Stocks that have been discussed as the most likely exclusion candidates in the KOSPI 200 rebalance include Lotte Tour Development, MS Industrial, Young Poong, GC Holdings, and KG Donbu Steel. 


KOSPI 200 Rebalance in December 2024 Highlighted by Locals

South Korea

LS Electric Co., Ltd. manufactures and distributes electrical power equipment. The Company produces smart power equipment, smart automation equipment, smart railway equipment, and other related products. LS Electric also develops smart grid, micro grid, energy storage systems, and metal products.

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LS Electric (010120 KS)

LS Electric: Increasing Supplies for Distribution Board Components to Elon Musk's XAI Data Centers

LS Electric, one of the major power equipment providers in Korea, became a new supplier of distribution board components to Elon Musk's xAI data...

Douglas Kim

LS Electric, Then Hyundai Rotem, Now Samyang Foods and Hyundai Mipo: Same Proactive Flow?

LS Electric, then Hyundai Rotem, and now Samyang Foods and HD Hyundai Mipo—are they all driving the same proactive flow ahead of the Global Index's...

Sanghyun Park

A Comparison of KOSPI 200 and S&P 500 Companies Performances in 2024

There is no large Palantir-like company that deals with AI/data analytics in Korea. However, large cap IT services and telcos in Korea are...

Douglas Kim

A Review of Major Equity Indices in Korea in 2024

We review the major equity indices in Korea in 2024 including KOSPI 200 and Korea Value Up Index. KRX plans to make special changes to the Korea...

Douglas Kim

KOSPI 200 Rebalance in December 2024 Highlighted by Locals

In this insight, we discuss stocks that are highlighted in the local media as potential inclusion and exclusion candidates in the KOSPI 200...

Douglas Kim

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