Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Keisei Electric Railway Co / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/keisei-electric-railway-co" target="_blank" data-smartkarma-citation="entities:10876:1" rel="noopener"><strong>Keisei Electric Railway Co (9009 JP)</strong></a>, which was already trading with an extreme disconnect with 22%-held <strong><a href="https://www.smartkarma.com/entities/oriental-land-co-ltd" target="_blank" data-smartkarma-citation="entities:13517:1" rel="noopener">Oriental Land (4661 JP)</a></strong>, is now even further out of whack.</li>
<li>
<a href="https://www.smartkarma.com/entities/doosan-co-ltd" target="_blank" data-smartkarma-citation="entities:7423:1" rel="noopener"><strong>Doosan Corp (000150 KS)</strong></a> is trading rich to 40%-held <strong><a href="https://www.smartkarma.com/entities/doosan-heavy-industries-construction" target="_blank" data-smartkarma-citation="entities:7389:1" rel="noopener">Doosan Heavy Industries &amp; Construction (034020 KS)</a></strong>.</li>
<li>A holding company structure for <strong><a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a></strong> following the recent listing of <strong><a href="https://www.smartkarma.com/entities/shanghai-microport-medbot-group-co-ltd" target="_blank" data-smartkarma-citation="entities:33485:1" rel="noopener">Shanghai MicroPort MedBot Group (2252 HK)</a></strong>.</li>
</ul>



Keisei Electric Railway Co (9009 JP), which was already trading with an extreme disconnect with 22%-held Oriental Land (4661 JP), is now even further out of whack.

Doosan Corp (000150 KS) is trading rich to 40%-held Doosan Heavy Industries &amp; Construction (034020 KS).
A holding company structure for Microport Scientific (853 HK) following the recent listing of Shanghai MicroPort MedBot Group (2252 HK).


StubWorld: Keisei/Oriental Land, Doosan Corp/Doosan Heavy, Microport Scientific

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.

<p><strong>An opportunity to short sell Doosan Fuel Cell, a flagship stock in Korea's hydrogen sector, is emerging.</strong></p><hr><p>Doosan Fuel Cell has recently rebounded as investor sentiment in the local hydrogen sector has improved again.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/228/435/original/Screen+Shot+2021-09-07+at+8.59.31+PM.png?1631062787" class="editor-image img-responsive" data-smartkarma-image-id="228435"></figure></section><p>However, the valuation is still overvalued with a 12M forward PER of over 100x. The current valuation is clearly at a level that has been substantially corrected compared to a year ago. Nevertheless, expected earnings growth, at least for the next several years, is still insufficient to justify the current valuation.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/228/433/original/Screen+Shot+2021-09-07+at+8.55.49+PM.png?1631062695" class="editor-image img-responsive" data-smartkarma-image-id="228433"></figure></section><p>Now, we will likely see a catalyst on the short side that may lead to a short-term decline in Doosan Fuel Cell's share price. Doosan Fuel Cell's current butter-and-bread business is fuel cells for power generation. However, this does not contribute much to the current overvalued valuation. The reason why it still exceeds the 12M forward PER of 100x is the presence of new businesses such as tri-gen for hydrogen charging and fuel cell for water electrolysis.</p>

An opportunity to short sell Doosan Fuel Cell, a flagship stock in Korea's hydrogen sector, is emerging.Doosan Fuel Cell has recently rebounded as investor sentiment in the local hydrogen sector has improved again.However, the valuation is still overvalued with a 12M forward PER of over 100x. The current valuation is clearly at a level that has been substantially corrected compared to a year ago. Nevertheless, expected earnings growth, at least for the next several years, is still insufficient to justify the current valuation.Now, we will likely see a catalyst on the short side that may lead to a short-term decline in Doosan Fuel Cell's share price. Doosan Fuel Cell's current butter-and-bread business is fuel cells for power generation. However, this does not contribute much to the current overvalued valuation. The reason why it still exceeds the 12M forward PER of 100x is the presence of new businesses such as tri-gen for hydrogen charging and fuel cell for water electrolysis.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<p>In this insight, we provide visual set-ups of the Korean stubs related pair-trades. We have included 40 pair trade set-ups of all the major Korean stubs related pairs (including regular and quasi holdcos and their respective opcos). We have provided YTD price chart comparisons of all the 40 pair trade set-ups below. </p><p>The <strong>top six best performing holdcos</strong> (among the companies listed below) YTD are as follows:</p><ul>
<li>
<a href="https://www.smartkarma.com/entities/doosan-co-ltd" target="_blank" data-smartkarma-citation="entities:7423:1" rel="noopener">Doosan Corp (000150 KS)</a> - up 86% YTD</li>
<li>
<a href="https://www.smartkarma.com/entities/hyosung-corporation" target="_blank" data-smartkarma-citation="entities:20712:1" rel="noopener">Hyosung Corporation (004800 KS)</a> - Up 62.5% YTD</li>
<li>
<a href="https://www.smartkarma.com/entities/poongsan-corp" target="_blank" data-smartkarma-citation="entities:16504:1" rel="noopener">Poongsan Corp (103140 KS)</a> - Up 50.3% YTD</li>
<li>
<a href="https://www.smartkarma.com/entities/samyang-holdings-corp" target="_blank" data-smartkarma-citation="entities:13761:1" rel="noopener">Samyang Holdings (000070 KS)</a> - Up 47.7% YTD</li>
<li>
<a href="https://www.smartkarma.com/entities/ecopro-co-ltd" target="_blank" data-smartkarma-citation="entities:19029:1" rel="noopener">Ecopro Co Ltd (086520 KS)</a> - Up 34.8% YTD</li>
<li>
<a href="https://www.smartkarma.com/entities/orion-corp" target="_blank" data-smartkarma-citation="entities:7615:1" rel="noopener">Orion Holdings (001800 KS)</a> - Up 30.2% YTD</li>
</ul><p>The <strong>top six best performing opcos</strong> (among the companies listed below) YTD are as follows:</p><ul>
<li>
<a href="https://www.smartkarma.com/entities/hanwha-aerospace-co-ltd" target="_blank" data-smartkarma-citation="entities:504:1" rel="noopener">Hanwha Aerospace (012450 KS)</a> - Up 73.8% YTD</li>
<li>
<a href="https://www.smartkarma.com/entities/doosan-heavy-industries-construction" target="_blank" data-smartkarma-citation="entities:7389:1" rel="noopener">Doosan Heavy Industries &amp; Construction (034020 KS)</a> - Up 56.5% YTD</li>
<li>
<a href="https://www.smartkarma.com/entities/ecopro-bm-co-ltd" target="_blank" data-smartkarma-citation="entities:27873:1" rel="noopener">Ecopro BM Co Ltd (247540 KS)</a> - 54.7% YTD</li>
<li>Aekyung Petrochem - Up 47.2% YTD</li>
<li>
<a href="https://www.smartkarma.com/entities/pan-ocean-co-ltd" target="_blank" data-smartkarma-citation="entities:5279:1" rel="noopener">Pan Ocean (028670 KS)</a> - Up 40.6% YTD</li>
<li>
<a href="https://www.smartkarma.com/entities/poongsan-corp" target="_blank" data-smartkarma-citation="entities:16504:1" rel="noopener">Poongsan Corp (103140 KS)</a> - Up 36.7% YTD</li>
</ul>

In this insight, we provide visual set-ups of the Korean stubs related pair-trades. We have included 40 pair trade set-ups of all the major Korean stubs related pairs (including regular and quasi holdcos and their respective opcos). We have provided YTD price chart comparisons of all the 40 pair trade set-ups below. The top six best performing holdcos (among the companies listed below) YTD are as follows:

Doosan Corp (000150 KS) - up 86% YTD

Hyosung Corporation (004800 KS) - Up 62.5% YTD

Poongsan Corp (103140 KS) - Up 50.3% YTD

Samyang Holdings (000070 KS) - Up 47.7% YTD

Ecopro Co Ltd (086520 KS) - Up 34.8% YTD

Orion Holdings (001800 KS) - Up 30.2% YTD
The top six best performing opcos (among the companies listed below) YTD are as follows:

Hanwha Aerospace (012450 KS) - Up 73.8% YTD

Doosan Heavy Industries &amp; Construction (034020 KS) - Up 56.5% YTD

Ecopro BM Co Ltd (247540 KS) - 54.7% YTD
Aekyung Petrochem - Up 47.2% YTD

Pan Ocean (028670 KS) - Up 40.6% YTD

Poongsan Corp (103140 KS) - Up 36.7% YTD


Pair Trade Setups of Korean Holdcos & Opcos

<p>Doosan Heavy Industries is right at the center of a potential short-selling attack. It tops the loan balance/float shares ratio among the KOSPI 200 constituents having the short-selling eligibility. A whopping 33.31% of its free-float shares are currently sitting on the loan balance book, representing 6.18 times the 30-day average daily trade volume.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Name"}'>Top 10 loan balance/float shares among KOSPI 200 constituents</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":2,"2":"Loan balance/float shares"}'>Loan balance/float shares</td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":2,"2":"Loan balance/ADTV"}'>Loan balance/ADTV</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":2,"2":"Short interest/float shares"}'>Short interest/float shares</td>
</tr>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Doosan Heavy Industries Constrctn Co Ltd"}'><strong>Doosan Heavy Industries Constrctn Co Ltd</strong></td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"034020"}'><strong>034020</strong></td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.33313115497862084}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>33.31%</strong></td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":6.1772001583452525}' data-sheets-numberformat='[null,2,"#,##0.00",1]'><strong>6.18x</strong></td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.06259086104962007}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>6.26%</strong></td>
</tr>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"CJ CGV Co Ltd"}'>CJ CGV Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"079160"}'>079160</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.2402089129940976}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>24.02%</strong></td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":7.207901449599426}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>7.21x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.024956215628078603}' data-sheets-numberformat='[null,3,"0.00%",1]'>2.50%</td>
</tr>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Doosan Infracore Co Ltd"}'>Doosan Infracore Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"042670"}'>042670</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.21710053863774298}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>21.71%</strong></td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":5.222225987607389}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>5.22x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.05900084045410738}' data-sheets-numberformat='[null,3,"0.00%",1]'>5.90%</td>
</tr>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Lotte Tour Development Co., Ltd."}'>Lotte Tour Development Co., Ltd.</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"032350"}'>032350</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.2087869666622583}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>20.88%</strong></td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":8.600321553335345}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>8.60x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.1502166979579341}' data-sheets-numberformat='[null,3,"0.00%",1]'>15.02%</td>
</tr>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"LG Display Co Ltd"}'>LG Display Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"034220"}'>034220</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.20587227486735404}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>20.59%</strong></td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":10.565776191720973}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>10.57x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.054404371553615063}' data-sheets-numberformat='[null,3,"0.00%",1]'>5.44%</td>
</tr>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"GS Retail Co Ltd"}'>GS Retail Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"007070"}'>007070</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.19100824155953727}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>19.10%</strong></td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":9.078724740347708}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>9.08x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.024814744452913234}' data-sheets-numberformat='[null,3,"0.00%",1]'>2.48%</td>
</tr>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Doosan Fuel Cell Co Ltd"}'>Doosan Fuel Cell Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":3,"3":336260}'>336260</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.16218958169718495}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>16.22%</strong></td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":3.4172313491476447}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>3.42x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.032657164213887084}' data-sheets-numberformat='[null,3,"0.00%",1]'>3.27%</td>
</tr>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Iljin Materials Co Ltd"}'>Iljin Materials Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"020150"}'>020150</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.15125967919243655}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>15.13%</strong></td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":13.371711310342299}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>13.37x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.01919306152059439}' data-sheets-numberformat='[null,3,"0.00%",1]'>1.92%</td>
</tr>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"HMM Co Ltd"}'>HMM Co Ltd</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"011200"}'>011200</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.14695677273238528}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>14.70%</strong></td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":2.818376762499618}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>2.82x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.022077757350810294}' data-sheets-numberformat='[null,3,"0.00%",1]'>2.21%</td>
</tr>
<tr>
<td style="width: 236.364px;" data-sheets-value='{"1":2,"2":"Hyundai Wia Corp"}'>Hyundai Wia Corp</td>
<td style="text-align: right; width: 47.2727px;" data-sheets-value='{"1":2,"2":"011210"}'>011210</td>
<td style="text-align: right; width: 115.455px;" data-sheets-value='{"1":3,"3":0.13411777144290182}' data-sheets-numberformat='[null,3,"0.00%",1]'><strong>13.41%</strong></td>
<td style="text-align: right; width: 124.545px;" data-sheets-value='{"1":3,"3":3.9947088743693655}' data-sheets-numberformat='[null,2,"#,##0.00",1]'>3.99x</td>
<td style="text-align: right; width: 116.364px;" data-sheets-value='{"1":3,"3":0.04089145994437073}' data-sheets-numberformat='[null,3,"0.00%",1]'>4.09%</td>
</tr>
<tr><td colspan="5" style="width: 236.364px;">Source: KRX &amp; KOFIA</td></tr>
</tbody>
</table><p>The current short interest is 6.26% of the float shares, but this is two trading session-delayed data. Given the still heavy short-selling volume in the last two trading days, it should be well above 7% now. A weekly increase in the short interest is 113.90%, and the loan balance also saw a 68.71% weekly increase. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/211/311/original/Doosan+Heavy+Industries.png?1622915529" class="editor-image img-responsive" data-smartkarma-image-id="211311"></figure></section>

Doosan Heavy Industries is right at the center of a potential short-selling attack. It tops the loan balance/float shares ratio among the KOSPI 200 constituents having the short-selling eligibility. A whopping 33.31% of its free-float shares are currently sitting on the loan balance book, representing 6.18 times the 30-day average daily trade volume.









Top 10 loan balance/float shares among KOSPI 200 constituents
Ticker
Loan balance/float shares
Loan balance/ADTV
Short interest/float shares


Doosan Heavy Industries Constrctn Co Ltd
034020
33.31%
6.18x
6.26%


CJ CGV Co Ltd
079160
24.02%
7.21x
2.50%


Doosan Infracore Co Ltd
042670
21.71%
5.22x
5.90%


Lotte Tour Development Co., Ltd.
032350
20.88%
8.60x
15.02%


LG Display Co Ltd
034220
20.59%
10.57x
5.44%


GS Retail Co Ltd
007070
19.10%
9.08x
2.48%


Doosan Fuel Cell Co Ltd
336260
16.22%
3.42x
3.27%


Iljin Materials Co Ltd
020150
15.13%
13.37x
1.92%


HMM Co Ltd
011200
14.70%
2.82x
2.21%


Hyundai Wia Corp
011210
13.41%
3.99x
4.09%

Source: KRX &amp; KOFIA

The current short interest is 6.26% of the float shares, but this is two trading session-delayed data. Given the still heavy short-selling volume in the last two trading days, it should be well above 7% now. A weekly increase in the short interest is 113.90%, and the loan balance also saw a 68.71% weekly increase. 

Doosan Heavy, Korea's Latest Meme Stock Without Substance?

<p>Doosan Heavy Industries is up 15% today on the news that Korea and the US signed the business collaboration agreement for the SMR (Small Modular Reactor) cooperation. Doosan Heavy has been looking to export its SMRs to the US for a while.</p><p>Doosan Heavy's price surge leads to an extreme diversion in the price ratio vs. Doosan Corp. It is currently 2.43% off the 180-day mean: Doosan Corp in the numerator and Doosan Heavy in the denominator. The pair is 31.51% below the 180-day high.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Doosan Corp"}' data-sheets-formula="=R[-110]C[-6]">Doosan Corp vs. Doosan Heavy Industries</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current price ratio"}'>Current price ratio</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3.902869757174393}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula='=indirect("$E"&amp;R159C[0])'>3.90287</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"%Δ to 180-day mean"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'><strong>%Δ to 180-day mean</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.024321120573437455}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula='=indirect("$B"&amp;R159C[0])'><strong>-2.43%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"%Δ to 180-day high"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'><strong>%Δ to 180-day high</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.31509527938165255}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula='=indirect("$C"&amp;R159C[0])'><strong>-31.51%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"%Δ to 180-day low"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>%Δ to 180-day low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.32239356345043796}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula='=indirect("$D"&amp;R159C[0])'>32.24%</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><section class="figure"><p>The current sigma on a 20-day moving average is -2.59, putting the duo back to where there were a month ago. </p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/210/698/original/Doosan+Corp+vs.+Doosan+Heavy+Industries+Constrctn+Co+Ltd.png?1622610836" class="editor-image img-responsive" data-smartkarma-image-id="210698"></figure></section><p>Doosan Corp is basically a single-subsidiary holding company with a substantial presence of its own operating operation. But Doosan Heavy alone accounts for nearly 70% of the GAV, making them a suitable pair for a stub trade.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 229.091px;" data-sheets-value='{"1":2,"2":"Assets"}'>Assets</td>
<td style="text-align: right; width: 225.455px;" data-sheets-value='{"1":2,"2":"% of NAV"}'>% of NAV</td>
<td style="text-align: right; width: 227.273px;" data-sheets-value='{"1":2,"2":"% of GAV"}'>% of GAV</td>
</tr>
<tr>
<td style="width: 229.091px;" data-sheets-value='{"1":2,"2":"Doosan Heavy Industries Constrctn Co Ltd"}' data-sheets-formula="=NAV!R[11]C[0]"><strong>Doosan Heavy Industries Constrctn Co Ltd</strong></td>
<td style="text-align: right; width: 225.455px;" data-sheets-value='{"1":3,"3":0.9151962366131203}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[11]C[2]/R28C[0]"><strong>91.52%</strong></td>
<td style="text-align: right; width: 227.273px;" data-sheets-value='{"1":3,"3":0.6808923434006716}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[11]C[1]/R23C[-1]"><strong>68.09%</strong></td>
</tr>
<tr>
<td style="width: 229.091px;" data-sheets-value='{"1":2,"2":"Oricom Inc"}' data-sheets-formula="=NAV!R[11]C[0]">Oricom Inc</td>
<td style="text-align: right; width: 225.455px;" data-sheets-value='{"1":3,"3":0.011680247052466503}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[11]C[2]/R28C[0]">1.17%</td>
<td style="text-align: right; width: 227.273px;" data-sheets-value='{"1":3,"3":0.00868992951335164}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[11]C[1]/R23C[-1]">0.87%</td>
</tr>
<tr>
<td style="width: 229.091px;" data-sheets-value='{"1":2,"2":"Infinitt Healthcare Co Ltd"}' data-sheets-formula="=NAV!R[11]C[0]">Infinitt Healthcare Co Ltd</td>
<td style="text-align: right; width: 225.455px;" data-sheets-value='{"1":3,"3":0.000027824626946200257}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[11]C[2]/R28C[0]">0.00%</td>
<td style="text-align: right; width: 227.273px;" data-sheets-value='{"1":3,"3":0.00002070110724641955}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[11]C[1]/R23C[-1]">0.00%</td>
</tr>
<tr>
<td style="width: 229.091px;" data-sheets-value='{"1":2,"2":"Solus Advanced Materials 1P"}' data-sheets-formula="=NAV!R[11]C[0]">Solus Advanced Materials 1P</td>
<td style="text-align: right; width: 225.455px;" data-sheets-value='{"1":3,"3":0.029027529178169444}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[11]C[2]/R28C[0]">2.90%</td>
<td style="text-align: right; width: 227.273px;" data-sheets-value='{"1":3,"3":0.02159604855719073}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[11]C[1]/R23C[-1]">2.16%</td>
</tr>
<tr>
<td style="width: 229.091px;" data-sheets-value='{"1":2,"2":"Other - unlisted"}' data-sheets-formula="=NAV!R[11]C[0]">Other - unlisted</td>
<td style="text-align: right; width: 225.455px;" data-sheets-value='{"1":3,"3":0.13198779914059305}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[11]C[2]/R28C[0]">13.20%</td>
<td style="text-align: right; width: 227.273px;" data-sheets-value='{"1":3,"3":0.09819695302694514}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[11]C[1]/R23C[-1]">9.82%</td>
</tr>
<tr>
<td style="width: 229.091px;" data-sheets-value='{"1":2,"2":"Operation"}' data-sheets-formula="=NAV!R[25]C[0]"><strong>Operation</strong></td>
<td style="text-align: right; width: 225.455px;" data-sheets-value='{"1":3,"3":0.25619334319140497}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[25]C[2]/R28C[0]"><strong>25.62%</strong></td>
<td style="text-align: right; width: 227.273px;" data-sheets-value='{"1":3,"3":0.19060402439459445}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[25]C[1]/R23C[-1]"><strong>19.06%</strong></td>
</tr>
<tr>
<td style="width: 229.091px;" data-sheets-value='{"1":2,"2":"Holdco net cash/debt (de-consolidated)"}' data-sheets-formula="=NAV!R[25]C[0]">Holdco net cash/debt (de-consolidated)</td>
<td style="text-align: right; width: 225.455px;" data-sheets-value='{"1":3,"3":-0.2705439344996471}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[25]C[2]/R28C[0]">-27.05%</td>
<td style="text-align: right; width: 227.273px;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,3,"0.00%",1]'>-</td>
</tr>
<tr>
<td style="width: 229.091px;" data-sheets-value='{"1":2,"2":"Value of pref shares"}' data-sheets-formula="=NAV!R[-14]C[0]">Value of pref shares</td>
<td style="text-align: right; width: 225.455px;" data-sheets-value='{"1":3,"3":-0.07356904530305353}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=-R[-14]C[0]/R28C[0]">-7.36%</td>
<td style="text-align: right; width: 227.273px;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,3,"0.00%",1]'>-</td>
</tr>
<tr><td colspan="3" style="width: 723.636px;">Source: DART &amp; KRX</td></tr>
</tbody>
</table><p>Doosan Corp controls 41.95% of Doosan Heavy Industries, translating into a ₩3.85T market value.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 242.727px;" data-sheets-value='{"1":2,"2":"Holdings"}'>Holdings</td>
<td style="text-align: right; width: 148.182px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 122.727px;" data-sheets-value='{"1":2,"2":"Stake"}'>Stake</td>
<td style="text-align: right; width: 147.273px;" data-sheets-value='{"1":2,"2":"Value"}'>Value</td>
</tr>
<tr>
<td style="width: 242.727px;" data-sheets-value='{"1":2,"2":"Doosan Heavy Industries Constrctn Co Ltd"}' data-sheets-formula="=NAV!R[10]C[0]"><strong>Doosan Heavy Industries Constrctn Co Ltd</strong></td>
<td style="text-align: right; width: 148.182px;" data-sheets-value='{"1":2,"2":"034020"}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=NAV!R[10]C[0]"><strong>034020</strong></td>
<td style="text-align: right; width: 122.727px;" data-sheets-value='{"1":3,"3":0.41950000000000004}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=NAV!R[10]C[0]"><strong>41.95%</strong></td>
<td style="text-align: right; width: 147.273px;" data-sheets-value='{"1":3,"3":3854.7747096210005}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=NAV!R[10]C[0]"><strong>₩3,854.8B</strong></td>
</tr>
<tr>
<td style="width: 242.727px;" data-sheets-value='{"1":2,"2":"Oricom Inc"}' data-sheets-formula="=NAV!R[10]C[0]">Oricom Inc</td>
<td style="text-align: right; width: 148.182px;" data-sheets-value='{"1":2,"2":"010470"}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=NAV!R[10]C[0]">010470</td>
<td style="text-align: right; width: 122.727px;" data-sheets-value='{"1":3,"3":0.6154999999999999}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=NAV!R[10]C[0]">61.55%</td>
<td style="text-align: right; width: 147.273px;" data-sheets-value='{"1":3,"3":49.50336598724999}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=NAV!R[10]C[0]">₩49.5B</td>
</tr>
<tr>
<td style="width: 242.727px;" data-sheets-value='{"1":2,"2":"Infinitt Healthcare Co Ltd"}' data-sheets-formula="=NAV!R[10]C[0]">Infinitt Healthcare Co Ltd</td>
<td style="text-align: right; width: 148.182px;" data-sheets-value='{"1":2,"2":"071200"}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=NAV!R[10]C[0]">071200</td>
<td style="text-align: right; width: 122.727px;" data-sheets-value='{"1":3,"3":0.0006}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=NAV!R[10]C[0]">0.06%</td>
<td style="text-align: right; width: 147.273px;" data-sheets-value='{"1":3,"3":0.11827402838399999}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=NAV!R[10]C[0]">₩0.1B</td>
</tr>
<tr>
<td style="width: 242.727px;" data-sheets-value='{"1":2,"2":"Solus Advanced Materials 1P"}' data-sheets-formula="=NAV!R[10]C[0]">Solus Advanced Materials 1P</td>
<td style="text-align: right; width: 148.182px;" data-sheets-value='{"1":2,"2":"33637K"}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=NAV!R[10]C[0]">33637K</td>
<td style="text-align: right; width: 122.727px;" data-sheets-value='{"1":3,"3":0.028399999999999998}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=NAV!R[10]C[0]">2.84%</td>
<td style="text-align: right; width: 147.273px;" data-sheets-value='{"1":3,"3":123.01888}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=NAV!R[10]C[0]">₩123.0B</td>
</tr>
<tr>
<td style="width: 242.727px;" data-sheets-value='{"1":2,"2":"Other - unlisted"}' data-sheets-formula="=NAV!R[13]C[0]">Other - unlisted</td>
<td style="text-align: right; width: 148.182px;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,2,"#,##0",1]'>-</td>
<td style="text-align: right; width: 122.727px;" data-sheets-value='{"1":2,"2":"-"}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=NAV!R[13]C[0]">-</td>
<td style="text-align: right; width: 147.273px;" data-sheets-value='{"1":3,"3":561.04}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=NAV!R[13]C[0]">₩561.0B</td>
</tr>
<tr><td colspan="4" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX &amp; DART"}'>Source: KRX &amp; DART</td></tr>
</tbody>
</table>

Doosan Heavy Industries is up 15% today on the news that Korea and the US signed the business collaboration agreement for the SMR (Small Modular Reactor) cooperation. Doosan Heavy has been looking to export its SMRs to the US for a while.Doosan Heavy's price surge leads to an extreme diversion in the price ratio vs. Doosan Corp. It is currently 2.43% off the 180-day mean: Doosan Corp in the numerator and Doosan Heavy in the denominator. The pair is 31.51% below the 180-day high.





Doosan Corp vs. Doosan Heavy Industries

Current price ratio
3.90287


%Δ to 180-day mean
-2.43%


%Δ to 180-day high
-31.51%


%Δ to 180-day low
32.24%

Source: KRX

The current sigma on a 20-day moving average is -2.59, putting the duo back to where there were a month ago. 
Doosan Corp is basically a single-subsidiary holding company with a substantial presence of its own operating operation. But Doosan Heavy alone accounts for nearly 70% of the GAV, making them a suitable pair for a stub trade.







Assets
% of NAV
% of GAV


Doosan Heavy Industries Constrctn Co Ltd
91.52%
68.09%


Oricom Inc
1.17%
0.87%


Infinitt Healthcare Co Ltd
0.00%
0.00%


Solus Advanced Materials 1P
2.90%
2.16%


Other - unlisted
13.20%
9.82%


Operation
25.62%
19.06%


Holdco net cash/debt (de-consolidated)
-27.05%
-


Value of pref shares
-7.36%
-

Source: DART &amp; KRX

Doosan Corp controls 41.95% of Doosan Heavy Industries, translating into a ₩3.85T market value.








Holdings
Ticker
Stake
Value


Doosan Heavy Industries Constrctn Co Ltd
034020
41.95%
₩3,854.8B


Oricom Inc
010470
61.55%
₩49.5B


Infinitt Healthcare Co Ltd
071200
0.06%
₩0.1B


Solus Advanced Materials 1P
33637K
2.84%
₩123.0B


Other - unlisted
-
-
₩561.0B

Source: KRX &amp; DART



Doosan Stub: An Entry Point in This Extreme Diversion

South Korea

Doosan Co., Ltd operates as a diversified manufacturing and service company. The Company conducts electronic components production, logistics equipment manufacturing, information technology consulting, and other businesses. Doosan provides services worldwide.

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

Doosan Corp (000150 KS)

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Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)