Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

Amorepacific Corporation / Equity Bottom-Up

<p>It has been more than a year that it has been discussed in the Korean media about a potential visit of Xi Jinping to South Korea. Due to concerns about COVID-19 and other political factors, Xi Jinping's visit to South Korea has continued to get delayed. Xi Jinping's visit to South Korea is very important since it signifies that there could be much improved measures to increase trade and business opportunities between the two countries. His visit could also lead to the Chinese government opening up measures to allow greater travel measures for the people in China to visit South Korea. </p><p><strong>When will Xi Jinping Visit South Korea? </strong>Although the exact time period of when Xi Jinping could visit South Korea is uncertain, late August/early September could be a probable time when he could visit South Korea. This would be about four months from now which would provide more time for the South Korean government to reduce the daily new cases of COVID-19. It is also probably likely that some investors are already buying shares of these stocks ahead of the actual official announcement of a potential visit of South Korea by Xi Jinping.</p>

It has been more than a year that it has been discussed in the Korean media about a potential visit of Xi Jinping to South Korea. Due to concerns about COVID-19 and other political factors, Xi Jinping's visit to South Korea has continued to get delayed. Xi Jinping's visit to South Korea is very important since it signifies that there could be much improved measures to increase trade and business opportunities between the two countries. His visit could also lead to the Chinese government opening up measures to allow greater travel measures for the people in China to visit South Korea. When will Xi Jinping Visit South Korea? Although the exact time period of when Xi Jinping could visit South Korea is uncertain, late August/early September could be a probable time when he could visit South Korea. This would be about four months from now which would provide more time for the South Korean government to reduce the daily new cases of COVID-19. It is also probably likely that some investors are already buying shares of these stocks ahead of the actual official announcement of a potential visit of South Korea by Xi Jinping.

Xi Jinping's Visit to South Korea: A Trading Strategy for Korean Cosmetics & Consumer Stocks

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/xinyi-solar-holdings-ltd" target="_blank" data-smartkarma-citation="entities:318:1" rel="noopener">Xinyi Solar Holdings (968 HK)</a>, <a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo (992 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a>, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> and <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/china-pacific-insurance-group" target="_blank" data-smartkarma-citation="entities:6177:1" rel="noopener">China Pacific Insurance (2601 HK)</a>, <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a> and <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>. Shorts increased in Consumer Discretionary, Consumer Staples, Health Care and Information Technology, while shorts decreased in Communication Services, Financials, Real Estate and Industrials.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a>, <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-financial-group" target="_blank" data-smartkarma-citation="entities:218:1" rel="noopener">Mitsubishi UFJ Financial (MUFG) (8306 JP)</a>, <a href="https://www.smartkarma.com/entities/resona-holdings-inc" target="_blank" data-smartkarma-citation="entities:6841:1" rel="noopener">Resona Holdings (8308 JP)</a>, <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-lease-finance" target="_blank" data-smartkarma-citation="entities:1467:1" rel="noopener">Mitsubishi UFJ Lease &amp; Finance (8593 JP)</a> and <a href="https://www.smartkarma.com/entities/nsk-ltd" target="_blank" data-smartkarma-citation="entities:6309:1" rel="noopener">NSK Ltd (6471 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/asics-corp" target="_blank" data-smartkarma-citation="entities:16287:1" rel="noopener">ASICS Corp (7936 JP)</a>, <a href="https://www.smartkarma.com/entities/haseko-corp" target="_blank" data-smartkarma-citation="entities:748:1" rel="noopener">Haseko Corp (1808 JP)</a>, <a href="https://www.smartkarma.com/entities/cyberagent-inc" target="_blank" data-smartkarma-citation="entities:8197:1" rel="noopener">CyberAgent Inc (4751 JP)</a> and <a href="https://www.smartkarma.com/entities/idemitsu-kosan-co-ltd" target="_blank" data-smartkarma-citation="entities:109:1" rel="noopener">Idemitsu Kosan (5019 JP)</a>. Shorts increased in Financials, Energy, Health Care and Information Technology sectors, and decreased in the Industrials sector.</p></div><div><p>In Korea, short increased on <a href="https://www.smartkarma.com/entities/amorepacific-corp" target="_blank" data-smartkarma-citation="entities:20854:1" rel="noopener">Amorepacific Corp (090430 KS)</a>, <a href="https://www.smartkarma.com/entities/korea-united-pharm-inc" target="_blank" data-smartkarma-citation="entities:5207:1" rel="noopener">Korea United Pharm (033270 KS)</a>, <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/korea-electric-power-corp" target="_blank" data-smartkarma-citation="entities:16:1" rel="noopener">Korea Electric Power (015760 KS)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a>, <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a> and <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>. </p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a>, <a href="https://www.smartkarma.com/entities/unimicron-technology-corp" target="_blank" data-smartkarma-citation="entities:18778:1" rel="noopener">Unimicron Technology (3037 TT)</a>, <a href="https://www.smartkarma.com/entities/yulon-motor-company" target="_blank" data-smartkarma-citation="entities:18249:1" rel="noopener">Yulon Motor Company (2201 TT)</a> and <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a> and <a href="https://www.smartkarma.com/entities/acer-inc" target="_blank" data-smartkarma-citation="entities:15726:1" rel="noopener">Acer Inc (2353 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Xinyi Solar Holdings (968 HK), Lenovo (992 HK), JD Health (6618 HK), BYD (1211 HK) and Alibaba Group (9988 HK) while there was short covering on Tencent Holdings (700 HK), Xiaomi Corp (1810 HK), China Pacific Insurance (2601 HK), Sunny Optical (2382 HK) and CSPC Pharmaceutical Group (1093 HK). Shorts increased in Consumer Discretionary, Consumer Staples, Health Care and Information Technology, while shorts decreased in Communication Services, Financials, Real Estate and Industrials.In Japan, stocks that saw the most shorts were ENEOS Holdings (5020 JP), Mitsubishi UFJ Financial (MUFG) (8306 JP), Resona Holdings (8308 JP), Mitsubishi UFJ Lease &amp; Finance (8593 JP) and NSK Ltd (6471 JP) while shorts decreased on Toshiba Corp (6502 JP), ASICS Corp (7936 JP), Haseko Corp (1808 JP), CyberAgent Inc (4751 JP) and Idemitsu Kosan (5019 JP). Shorts increased in Financials, Energy, Health Care and Information Technology sectors, and decreased in the Industrials sector.In Korea, short increased on Amorepacific Corp (090430 KS), Korea United Pharm (033270 KS), LG Chem Ltd (051910 KS) and Korea Electric Power (015760 KS) while shorts decreased on Samsung Electronics (005930 KS), Doosan Infracore (042670 KS), Naver Corp (035420 KS) and SK Hynix (000660 KS). Stocks in Taiwan that saw the highest increase in shorts were Pegatron Corp (4938 TT), Unimicron Technology (3037 TT), Yulon Motor Company (2201 TT) and United Microelectronics Corp (2303 TT) while shorts were covered on TSMC (2330 TT), Yageo Corporation (2327 TT), AU Optronics (2409 TT) and Acer Inc (2353 TT). 

Asia Short Interest: Xinyi Solar, Alibaba, Tencent, ENEOS, Resona, Toshiba, Samsung, TSMC, Yageo

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

<p>Amore G is now at a -2.23σ on a 20D MA relative to its major subsidiary, Amore P.</p><p>It is a 2M low and also a 2-yr low.</p><p>In fact, it is virtually at a historic low. </p><table class="table table-striped">
<colgroup>
<col width="140">
<col width="70">
<col width="70">
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"% of sigma"}'>% of sigma</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Today"}'>Today</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"T-1"}'>T-1</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"T-2"}'>T-2</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"T-3"}'>T-3</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"T-4"}'>T-4</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"T-5"}'>T-5</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Amore G"}'>Amore G</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-2.233672373317701}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=importrange(R9C1, "2!I2")'><strong>-223.37%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-1.5482241709598867}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=importrange(R9C1, "2!I3")'>-154.82%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-1.195277974328186}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=importrange(R9C1, "2!I4")'>-119.53%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2360685150394095}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=importrange(R9C1, "2!I5")'>23.61%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.9598659936653405}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=importrange(R9C1, "2!I6")'>95.99%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.1379503406354312}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=importrange(R9C1, "2!I7")'>113.80%</td>
</tr>
<tr><td colspan="7" data-sheets-value='{"1":2,"2":"Celltrion"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Source: KRX</td></tr>
</tbody>
</table><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/196/028/original/chart+%282%29.png?1616348888" class="editor-image img-responsive" data-smartkarma-image-id="196028"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/196/029/original/chart.png?1616349056" class="editor-image img-responsive" data-smartkarma-image-id="196029"></figure></section><p>Holdco NAV discount now sits at 34.3%, still a historical peak level.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"NAV (₩B)"}' data-sheets-note="Sang Hyun Park: Cases when a company's net cash position and the value of its publically traded interests are worth more than its market cap create the opportunity of a stub trade, in which investors can take a view that the company's core business will rise by shorting the minority stakes whilst going long the underlying. Such an opportunity has arisen in the wake of the Alibaba listing which has seen early investing company Yahoo trade at a discount to the value of its stake in Alibaba.">NAV (₩B)</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of listed holdings"}'>Value of listed holdings</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5350.125102254677}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=SUM(R[36]C[2]:R[39]C[2])">5,350.1</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of holdco market cap"}'>- % of Holdco market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.0464982413988084}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=R[-1]C[0]/((R[-12]C[0]*R[-15]C[0])/1000000000)">104.65%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of unlisted holdings"}'>Value of unlisted holdings</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1585.995}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=SUM(R[38]C[2]:R[45]C[2])">1,586.0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Stub value"}'>Stub value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-1823.7129422546768}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=(R[-14]C[0]*R[-17]C[0]/1000000000)-R[-3]C[0]-R[-1]C[0]">-1,823.7</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Stub value per share"}'>Stub value per share</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-22116.82263972691}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-1]C[0]*1000000000/R[-18]C[0]">-₩22,117</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of operating assets"}'>Value of operating assets</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":135}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=SUM(R[64]C[2]:R[65]C[2])">135.0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"GAV"}'>GAV</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7071.120102254677}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[-6]C[0]+R[-4]C[0]+R[-1]C[0]">7,071.1</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"GAV per share"}'>GAV per share</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":91942.05008636798}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-1]C[0]/R[-11]C[0]*1000000000">₩91,942</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Discount to GAV (excl. treasury shares)"}'>Discount to GAV (excl. treasury shares)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.325662197636894}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-1]C[0]-R[-19]C[0])/R[-1]C[0]">32.57%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Holdco net cash/debt (deconsolidated)"}'>Holdco net cash/debt (de-consolidated)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":327.2}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[62]C[2]">327.2</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of pref shares"}'>Value of pref shares</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":140.1519975}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[-20]C[0]*R[-17]C[0]/1000000000">140.2</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"NAV"}'>NAV</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7258.168104754676}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[-5]C[0]+R[-2]C[0]-R[-1]C[0]">7,258.2</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"NAV per share (excl. treasury shares)"}'>NAV per share (excl. treasury shares)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":94374.13673823046}' data-sheets-numberformat='{"1":2,"2":"[$₩-412]#,##0","3":1}' data-sheets-formula="=R[-1]C[0]/R[-16]C[0]*1000000000">₩94,374</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Discount to NAV"}'>Discount to NAV</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.3430403483109782}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[-1]C[0]-R[-24]C[0])/R[-1]C[0]">34.30%</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX &amp; DART","6":1}'>Source: KRX &amp; DART</td></tr>
</tbody>
</table>

Amore G is now at a -2.23σ on a 20D MA relative to its major subsidiary, Amore P.It is a 2M low and also a 2-yr low.In fact, it is virtually at a historic low. 











% of sigma
Today
T-1
T-2
T-3
T-4
T-5


Amore G
-223.37%
-154.82%
-119.53%
23.61%
95.99%
113.80%

Source: KRX

Holdco NAV discount now sits at 34.3%, still a historical peak level.





NAV (₩B)

Value of listed holdings
5,350.1


- % of Holdco market cap
104.65%


Value of unlisted holdings
1,586.0


Stub value
-1,823.7


Stub value per share
-₩22,117


Value of operating assets
135.0


GAV
7,071.1


GAV per share
₩91,942


Discount to GAV (excl. treasury shares)
32.57%


Holdco net cash/debt (de-consolidated)
327.2


Value of pref shares
140.2


NAV
7,258.2


NAV per share (excl. treasury shares)
₩94,374


Discount to NAV
34.30%

Source: KRX &amp; DART



Amore G Stub Trade: Three Reasons Why Now Is an Entry Point

<div class="content-highlight"><p>While Amorepacfic spent time building one of the most beautiful headquarters building in Korea in the past several years, LG H&amp;H has become the number one cosmetics company in Korea, bypassing Amorepacific. In this insight, we discuss the key investment merits of LG H&amp;H. Regardless of the market conditions over the next 6-12 months, we believe LG H&amp;H can outperform the overall market. </p></div><h2>Key Catalysts</h2><ul>
<li><strong>Excellent performance of the cosmetics business despite worst-ever global environment for cosmetics </strong></li>
<li>
<strong>Improving overseas online sales of luxury cosmetics</strong> </li>
<li><strong>Improving operating margins of the HDB (Home Care &amp; Daily Beauty) &amp; beverages business units</strong></li>
</ul><div class="content-highlight"><p><strong>We believe that LG H&amp;H has a 30%+ upside from current levels using the relative historical P/E and P/B valuation methods. LG H&amp;H's current price is 1,600,000 won, so a 30% upside would represent 2,080,000 won over a one year period.  </strong></p></div>

While Amorepacfic spent time building one of the most beautiful headquarters building in Korea in the past several years, LG H&amp;H has become the number one cosmetics company in Korea, bypassing Amorepacific. In this insight, we discuss the key investment merits of LG H&amp;H. Regardless of the market conditions over the next 6-12 months, we believe LG H&amp;H can outperform the overall market. Key Catalysts
Excellent performance of the cosmetics business despite worst-ever global environment for cosmetics 

Improving overseas online sales of luxury cosmetics 
Improving operating margins of the HDB (Home Care &amp; Daily Beauty) &amp; beverages business units
We believe that LG H&amp;H has a 30%+ upside from current levels using the relative historical P/E and P/B valuation methods. LG H&amp;H's current price is 1,600,000 won, so a 30% upside would represent 2,080,000 won over a one year period.  

Lg H&H - Will The "Magic" Of the CEO Cha Continue?

<p>The short sell ban in Korea that was instated on 16 March 2020 is set to expire on 15 March.</p><p>However, with mayoral elections in Seoul and Busan around the corner, politicians are said to be leaning on the FSC to extend the short sell ban. Add to that the retail outrage - from petitions to the Blue House, bus tours, and posts on K-Streetbets of targeting stocks with high short interest.</p><p>There is a high likelihood that the short sell ban gets extended by three more months to tide the politicians over the mayoral elections.</p><p>In the event that the short sell ban expires, we highlight stocks that have seen the most short covering since the start of the short sell ban, stocks with high short interest as a percentage of market cap and free float, and high days of ADV to cover.</p><p>This will have implications for many strategies and will open the door to trade the ordinaries vs preferred shares, long/short and other related strategies.</p>

The short sell ban in Korea that was instated on 16 March 2020 is set to expire on 15 March.However, with mayoral elections in Seoul and Busan around the corner, politicians are said to be leaning on the FSC to extend the short sell ban. Add to that the retail outrage - from petitions to the Blue House, bus tours, and posts on K-Streetbets of targeting stocks with high short interest.There is a high likelihood that the short sell ban gets extended by three more months to tide the politicians over the mayoral elections.In the event that the short sell ban expires, we highlight stocks that have seen the most short covering since the start of the short sell ban, stocks with high short interest as a percentage of market cap and free float, and high days of ADV to cover.This will have implications for many strategies and will open the door to trade the ordinaries vs preferred shares, long/short and other related strategies.

Korea Short Sell Ban: Elections, Public Outrage, Bus Tours, Blue House Petitions, K-Streetbets

South Korea

Amorepacific Corp. develops, manufactures, and exports skin care, make-up, and fragrance products. The Company also produces and markets personal care and health-related products, such as shampoos, soaps, toothpastes, and health teas.

Amorepacific Corporation (Preferred) (090435 KS)

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52-week Range	0.00 - 0.00
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Amorepacific Corporation (Preferred) (090435 KS)

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