Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul><li>We highlight 25 Korean companies that are seeking to find new owners through M&amp;A in 2018. Key sectors of M&amp;A in Korea in 2018 include consumer, financials, and industrial. Our analysis is based on the publicly available information. Of the 25 companies, 10 are publicly listed companies and the remaining companies are private companies or business units of public companies. </li><li>The top five Korean companies up for sale in 2018 (in terms of size) include ADT Caps, Daewoo E&amp;C, Coway, Dongsuh F&amp;B, and CJ Healthcare. </li><li>In 2018, there could be a greater interest from the Chinese companies in the Korean M&amp;A market, which could help to accelerate some of the M&amp;A activities of the companies listed below. In 2017, many Chinese companies avoided acquiring Korean companies due to the political pressure from the Chinese government arising from the THAAD conflict</li></ul>

We highlight 25 Korean companies that are seeking to find new owners through M&amp;A in 2018. Key sectors of M&amp;A in Korea in 2018 include consumer, financials, and industrial. Our analysis is based on the publicly available information. Of the 25 companies, 10 are publicly listed companies and the remaining companies are private companies or business units of public companies. The top five Korean companies up for sale in 2018 (in terms of size) include ADT Caps, Daewoo E&amp;C, Coway, Dongsuh F&amp;B, and CJ Healthcare. In 2018, there could be a greater interest from the Chinese companies in the Korean M&amp;A market, which could help to accelerate some of the M&amp;A activities of the companies listed below. In 2017, many Chinese companies avoided acquiring Korean companies due to the political pressure from the Chinese government arising from the THAAD conflict

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Event-Driven

Samsung Electronics Pref Shares / Event-Driven

Let's do one interesting study here. In the last month (Oct 10-Nov 3), <a href="https://www.smartkarma.com/entities/23591" target="_blank" data-smartkarma-citation="entities:23591:1">Samsung Electronics Pref Shares (005935 KS)</a> ranked fifth in the local institutional top net buying list. Thanks to local institutions which have gone aggressive on SamE Pref in the last month, SamE Common-SamE Pref spread peaked at 81.63% on Nov 2, and it is now at 81.59% (as of Nov 3).<div>
<table class="table table-striped"><tbody>
<tr><td colspan="4">Local institutional investors' top 14 net buying stocks in KOSPI &amp; KOSDAQ between Oct 10-Nov 3</td></tr>
<tr>
<td>Rank</td>
<td>Stock</td>
<td>Net trade volume</td>
<td>Net trade value (₩)</td>
</tr>
<tr>
<td>1</td>
</tr>
</tbody></table>…</div>

Let's do one interesting study here. In the last month (Oct 10-Nov 3), Samsung Electronics Pref Shares (005935 KS) ranked fifth in the local institutional top net buying list. Thanks to local institutions which have gone aggressive on SamE Pref in the last month, SamE Common-SamE Pref spread peaked at 81.63% on Nov 2, and it is now at 81.59% (as of Nov 3).

Local institutional investors' top 14 net buying stocks in KOSPI &amp; KOSDAQ between Oct 10-Nov 3

Rank
Stock
Net trade volume
Net trade value (₩)


1

…

Samsung Electronics Common-Pref Spread - Data & Situational Study

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Korea Stock Exchange Kospi Index / Technical Analysis

The two-month pullback in Korea KOSPI has created buying opportunities. In fact, this recent weakness is largely confined to auto and financial stocks, masking strength in other segments, such as tech and materials, where bullish inflections are visible.  In this report we highlight a variety of actionable investment themes.

The two-month pullback in Korea KOSPI has created buying opportunities. In fact, this recent weakness is largely confined to auto and financial stocks, masking strength in other segments, such as tech and materials, where bullish inflections are visible.  In this report we highlight a variety of actionable investment themes.

Equity Bottom-Up

This report has two parts. First, it discusses the impact of the "trial of the century" involving the Samsung Group heir Lee Jae-Yong as well as major policies enforced and the impact on various industry sectors in the first 110 days of Moon Jae-In as the President of South Korea. The local media has described the trials involving the three key individuals, including former President Park Geun-Hye, her confidant Choi Soon Shil, and the Samsung Group heir Lee Jae-Yong as the "trials of the…

This report has two parts. First, it discusses the impact of the "trial of the century" involving the Samsung Group heir Lee Jae-Yong as well as major policies enforced and the impact on various industry sectors in the first 110 days of Moon Jae-In as the President of South Korea. The local media has described the trials involving the three key individuals, including former President Park Geun-Hye, her confidant Choi Soon Shil, and the Samsung Group heir Lee Jae-Yong as the "trials of the…

The "Trial of the Century", First 110 Days of Moon Jae-In Presidency, and Waiting for Tofu

<a href="https://www.smartkarma.com/entities/991" target="_blank" data-smartkarma-citation="entities:991:1">Celltrion Inc (068270 KS)</a> said in a regulatory filing that it will have EGM at 10 AM on Aug 29 to decide whether it will move to KOSPI.<div class="content-highlight">Below is the link of this regulatory filing in DART.<a href="http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170821900093" target="_blank">http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170821900093</a></div>Apparently, a majority of Celltrion shareholders will approve KOSPI move. So, it now seems that this is almost a done deal. Of course, KOSPI move itself won't make much difference in terms of short trade volume. But what is important is that there is a very high possibility that Celltrion will be included in KOSPI200.Yes, KOSPI200 inclusion is a big thing. So, any trading opportunity here? Alright, let's find it out.

Celltrion Inc (068270 KS) said in a regulatory filing that it will have EGM at 10 AM on Aug 29 to decide whether it will move to KOSPI.Below is the link of this regulatory filing in DART.http://dart.fss.or.kr/dsaf001/main.do?rcpNo=20170821900093Apparently, a majority of Celltrion shareholders will approve KOSPI move. So, it now seems that this is almost a done deal. Of course, KOSPI move itself won't make much difference in terms of short trade volume. But what is important is that there is a very high possibility that Celltrion will be included in KOSPI200.Yes, KOSPI200 inclusion is a big thing. So, any trading opportunity here? Alright, let's find it out.

More Discussions on Impacts of Celltrion's KOSPI200 Inclusion

South Korea

KB Financial Group Inc. (the "Company"), in accordance with Financial Holding Companies Act, was established on September 29, 2008, through stock transfer with the former shareholders of its subsidiaries including Kookmin Bank in order to provide management services and financing to associated companies. The headquarters are located at Seoul, Korea

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KB Financial (105560 KS)

2018 Korea M&A Preview: What's For Sale?

We highlight 25 Korean companies that are seeking to find new owners through M&A in 2018. Key sectors of M&A in Korea in 2018...

Douglas Kim

Samsung Electronics Common-Pref Spread - Data & Situational Study

Let's do one interesting study here. In the last month (Oct 10-Nov 3), Samsung Electronics Pref Shares (005935 KS) ranked fifth in the local...

Sanghyun Park

Pullback Opportunity in South Korea

The two-month pullback in Korea KOSPI has created buying opportunities. In fact, this recent weakness is largely confined to auto and financial...

Vermilion Research

The "Trial of the Century", First 110 Days of Moon Jae-In Presidency, and Waiting for Tofu

This report has two parts. First, it discusses the impact of the "trial of the century" involving the Samsung Group heir Lee Jae-Yong as well as...

Douglas Kim

More Discussions on Impacts of Celltrion's KOSPI200 Inclusion

Celltrion Inc (068270 KS) said in a regulatory filing that it will have EGM at 10 AM on Aug 29 to decide whether it will move to KOSPI. Below is...

Sanghyun Park

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