Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<ul>
<li>The EU ended the direct purchase subsidies for EVs; that is a negative for <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a>.</li>
<li>Management is quite bullish, but the last two quarters result were quite informative on the level of margin and contribution from the battery business. </li>
<li>It trades around 112x PER while historically around 25-35x PER and its competitor <a href="https://www.smartkarma.com/entities/contemporary-amperex-technology-catl-co-limited" target="_blank" data-smartkarma-citation="entities:45179:1" rel="noopener">Contemporary Amperex Technology (CATL) (3750 HK)</a> is only trading at 20x. </li>
</ul>


The EU ended the direct purchase subsidies for EVs; that is a negative for Samsung SDI (006400 KS).
Management is quite bullish, but the last two quarters result were quite informative on the level of margin and contribution from the battery business. 
It trades around 112x PER while historically around 25-35x PER and its competitor Contemporary Amperex Technology (CATL) (3750 HK) is only trading at 20x. 


Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Equity Capital Markets

<ul>
<li>Samsung SDI kept the trading window open until May 12, not May 9 — so stock rights will trade for a total of six sessions.</li>
<li>If all shorts are closed by May 16, we can still subscribe. Spot hedging isn’t allowed, but outright shorts for pricing plays are fine.</li>
<li>Entry cost is effectively capped at 146,200 won, and it’s still very unlikely the final price exceeds that, so using it as the rights entry cap still makes sense.</li>
</ul>


Samsung SDI kept the trading window open until May 12, not May 9 — so stock rights will trade for a total of six sessions.
If all shorts are closed by May 16, we can still subscribe. Spot hedging isn’t allowed, but outright shorts for pricing plays are fine.
Entry cost is effectively capped at 146,200 won, and it’s still very unlikely the final price exceeds that, so using it as the rights entry cap still makes sense.


Samsung SDI Rights Trade Period & Short Ban: Quick Clarity

<ul>
<li>Not much juice at ex-rights — price move’s small, and shorting’s risky with recall risk and having to compensate the lender for lost rights.</li>
<li>Some locals chase rights instead, but it’s not really a go-to trade with all the cost/efficiency uncertainty.</li>
<li>First round price pre–ex-rights sets the floor for arb margins and anchors rights pricing once they start trading — key level to keep in the playbook.</li>
</ul>


Not much juice at ex-rights — price move’s small, and shorting’s risky with recall risk and having to compensate the lender for lost rights.
Some locals chase rights instead, but it’s not really a go-to trade with all the cost/efficiency uncertainty.
First round price pre–ex-rights sets the floor for arb margins and anchors rights pricing once they start trading — key level to keep in the playbook.


Clearing Up the Confusion: Ex-Rights Trading in Korean Rights Offerings

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Samsung SDI (006400 KS) has lowered the rights offering capital raise amount by 14% to 1.7 trillion won, mainly due to the recent carnage in the global equity markets. </li>
<li>The expected rights offering price has been lowered to 146,200 won, which is 14.9% lower than current price.</li>
<li>We remain negative on Samsung SDI's rights offering capital raise mainly due to shares dilution risk. We also remain concerned that the weak demand for EVs globally could last longer.</li>
</ul>


Samsung SDI (006400 KS) has lowered the rights offering capital raise amount by 14% to 1.7 trillion won, mainly due to the recent carnage in the global equity markets. 
The expected rights offering price has been lowered to 146,200 won, which is 14.9% lower than current price.
We remain negative on Samsung SDI's rights offering capital raise mainly due to shares dilution risk. We also remain concerned that the weak demand for EVs globally could last longer.


Samsung SDI: Rights Offering Capital Raise Amount Lowered by 14% to 1.7 Trillion Won

<ul>
<li>Samsung SDI’s rights offering is locked in and even accelerated. Hanwha Aerospace awaits FSS approval, but a pullback is unlikely, with no major red flags seen by regulators.</li>
<li>With a four-week gap, supply pressure eases, reducing overhang concerns. This shift in dynamics impacts stock rights pricing and is key for any arb setup.</li>
<li>The wider schedule gap between deals boosts lenders' flexibility, increasing the likelihood of a stronger share recall. This makes for a solid trade setup, targeting recall-driven price action.</li>
</ul>


Samsung SDI’s rights offering is locked in and even accelerated. Hanwha Aerospace awaits FSS approval, but a pullback is unlikely, with no major red flags seen by regulators.
With a four-week gap, supply pressure eases, reducing overhang concerns. This shift in dynamics impacts stock rights pricing and is key for any arb setup.
The wider schedule gap between deals boosts lenders' flexibility, increasing the likelihood of a stronger share recall. This makes for a solid trade setup, targeting recall-driven price action.


Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure

South Korea

Samsung SDI Co., Ltd. specializes in developing Lithium Ion Battery (LIB) technology.  The Company also manufactures cathode ray tubes (CRTs) for televisions and computer monitors.  Samsung SDI also produces liquid crystal display (LCD) components and rechargeable batteries for cellular phones , personal digital assistants (PDAs), Energy Storage Systems and solar panels.

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Samsung SDI (006400 KS)

Samsung SDI (006400): Still a No

EU ending purchase subsidies for EVs is negative for Samsung SDI; management bullish but recent quarters show margin issue. Trading at 112x PER vs...

Henry Soediarko

Samsung SDI Rights Trade Period & Short Ban: Quick Clarity

This post clears up the confusion around Samsung SDI’s stock rights trading period and the short selling ban — what’s allowed, what’s not, and what...

Sanghyun Park

Clearing Up the Confusion: Ex-Rights Trading in Korean Rights Offerings

Korea’s rights offerings differ from global norms, causing noise in arb trading. Using the recent Samsung SDI deal as a case study, I’ll focus on...

Sanghyun Park

Samsung SDI: Rights Offering Capital Raise Amount Lowered by 14% to 1.7 Trillion Won

Samsung SDI has lowered the rights offering capital raise amount by 14% to 1.7 trillion won. The expected rights offering price has been lowered to...

Douglas Kim

Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure

This post clears up the confusion around the FSS’s intensive review of Samsung SDI and Hanwha Aerospace’s rights offerings: Keep an eye on the...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Samsung SDI (006400): Still a No

​EU ending purchase subsidies for EVs is negative for Samsung SDI; management bullish but recent quarters show margin issue. Trading at 112x PER vs...

Henry Soediarko

Samsung SDI Rights Trade Period & Short Ban: Quick Clarity

This post clears up the confusion around Samsung SDI’s stock rights trading period and the short selling ban — what’s allowed, what’s not, and what...

Sanghyun Park

Clearing Up the Confusion: Ex-Rights Trading in Korean Rights Offerings

Korea’s rights offerings differ from global norms, causing noise in arb trading. Using the recent Samsung SDI deal as a case study, I’ll focus on...

Sanghyun Park

Samsung SDI: Rights Offering Capital Raise Amount Lowered by 14% to 1.7 Trillion Won

Samsung SDI has lowered the rights offering capital raise amount by 14% to 1.7 trillion won. The expected rights offering price has been lowered to...

Douglas Kim

Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure

This post clears up the confusion around the FSS’s intensive review of Samsung SDI and Hanwha Aerospace’s rights offerings: Keep an eye on the...

Sanghyun Park

EU ending purchase subsidies for EVs is negative for Samsung SDI; management bullish but recent quarters show margin issue. Trading at 112x PER vs...