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

GS Engineering & Construction / Event-Driven

<ul>
<li>Eight stocks are highly likely to migrate with a substantial passive flow. Compared to the early phase of the screening period, GS Engineering &amp; Construction newly made the list.</li>
<li>Most names should show a quite substantial passive flow (x ADTV). In particular, KCC Corp and BGF Retail deserve our special attention for their expected passive impact.</li>
<li>The flow occurs on high potential migration stocks about 20 days before the effective date. So I would start building Long/Short Basket positions with the above eight names around mid-August.</li>
</ul>


Eight stocks are highly likely to migrate with a substantial passive flow. Compared to the early phase of the screening period, GS Engineering &amp; Construction newly made the list.
Most names should show a quite substantial passive flow (x ADTV). In particular, KCC Corp and BGF Retail deserve our special attention for their expected passive impact.
The flow occurs on high potential migration stocks about 20 days before the effective date. So I would start building Long/Short Basket positions with the above eight names around mid-August.


KOSPI Size Index Series Rebalancing in September: Eight Strong Targets

Index Rebalance

<ul>
<li>We generally detect an increase in the buying volume of local institutions for stocks moving from Large Cap to Mid Cap ahead of the KOSPI size index rebalancing.</li>
<li>At the last close, Mid→Large: Pan Ocean, Hyundai Mipo, BGF Retail, &amp; OCI / Large→Mid: Hanmi Science, KCC, DB Hitek, &amp; KEPCO E&amp;C
</li>
<li>The level of price impact/correlation in the last rebalancing was exceptionally high. This is reason enough for us to consider setting up a preemptive position for this rebalancing event.</li>
</ul>


We generally detect an increase in the buying volume of local institutions for stocks moving from Large Cap to Mid Cap ahead of the KOSPI size index rebalancing.
At the last close, Mid→Large: Pan Ocean, Hyundai Mipo, BGF Retail, &amp; OCI / Large→Mid: Hanmi Science, KCC, DB Hitek, &amp; KEPCO E&amp;C

The level of price impact/correlation in the last rebalancing was exceptionally high. This is reason enough for us to consider setting up a preemptive position for this rebalancing event.


KOSPI Size Index Series: September Rebalancing Preview

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul>
<li>In this insight, we discuss the top six stocks in Korea which could be the biggest movers due to the 2022 FIFA World Cup. </li>
<li>Due to the large impact of the World Cup this year, these six stocks could potentially outperform the market leading into the FIFA World Cup.</li>
<li>Among these six stocks, we particularly like AfreecaTV, HiteJinro, and BGF Retail in the next six months. </li>
</ul>


In this insight, we discuss the top six stocks in Korea which could be the biggest movers due to the 2022 FIFA World Cup. 
Due to the large impact of the World Cup this year, these six stocks could potentially outperform the market leading into the FIFA World Cup.
Among these six stocks, we particularly like AfreecaTV, HiteJinro, and BGF Retail in the next six months. 


2022 FIFA World Cup in Qatar: Top 6 Potential Winners in the Korean Stock Market

Equity Bottom-Up

<ul>
<li>We believe BGF Retail and GS Retail are strong turnaround plays amid the end of the social distancing policies in Korea.</li>
<li>These CVS plays are well positioned to withstand higher inflation rates and higher product price increases among the various retail channels in Korea.</li>
<li>Valuation multiples of GS Retail have declined significantly in the past five years. Their valuations have become more attractive as compared to lofty levels 4-5 years ago. </li>
</ul>


We believe BGF Retail and GS Retail are strong turnaround plays amid the end of the social distancing policies in Korea.
These CVS plays are well positioned to withstand higher inflation rates and higher product price increases among the various retail channels in Korea.
Valuation multiples of GS Retail have declined significantly in the past five years. Their valuations have become more attractive as compared to lofty levels 4-5 years ago. 


BGF Retail & GS Retail: Korean CVS Plays Likely to Better Withstand Higher Inflation

<ul>
<li>In this insight, we provide an analysis of a pair trade idea between BGF Co Ltd (027410 KS) and Bgf Retail (282330 KS).</li>
<li>Our strategy is to be long BGF Co &amp; short BGF Retail and achieve net gains of 5-8% on this pair trade over the next several weeks.</li>
<li>Our NAV analysis suggests BGF is vastly undervalued as compared to its NAV. BGF's 30% stake in BGF Retail is 819 billion won, which is 184% of BGF's market cap.</li>
</ul>


In this insight, we provide an analysis of a pair trade idea between BGF Co Ltd (027410 KS) and Bgf Retail (282330 KS).
Our strategy is to be long BGF Co &amp; short BGF Retail and achieve net gains of 5-8% on this pair trade over the next several weeks.
Our NAV analysis suggests BGF is vastly undervalued as compared to its NAV. BGF's 30% stake in BGF Retail is 819 billion won, which is 184% of BGF's market cap.


A Pair Trade Opportunity Emerging Between BGF Co & BGF Retail

South Korea

BGF Retail Co., Ltd. operates convenience stores. The Company retails delicatessen, sweets, snacks, beverages, tobacco, and other related products. BGF Retail markets its products throughout South Korea.

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BGF retail (282330 KS)

KOSPI Size Index Series Rebalancing in September: Eight Strong Targets

This post filters eight strong targets for long/short basket trading ahead of the September KOSPI Size Index Series rebalancing.

Sanghyun Park

KOSPI Size Index Series: September Rebalancing Preview

This post previews the upcoming rebalancing event of the KOSPI Size Index Series. Mid→Large: Pan Ocean, Hyundai Mipo, BGF Retail, & OCI /...

Sanghyun Park

2022 FIFA World Cup in Qatar: Top 6 Potential Winners in the Korean Stock Market

In this insight, we discuss the top six stocks in Korea which could be the biggest movers due to the 2022 FIFA World Cup.

Douglas Kim

BGF Retail & GS Retail: Korean CVS Plays Likely to Better Withstand Higher Inflation

BGF Retail and GS Retail are strong turnaround plays amid the end of the social distancing policies in Korea. These CVS plays are well positioned...

Douglas Kim

A Pair Trade Opportunity Emerging Between BGF Co & BGF Retail

We provide an analysis of a pair trade between BGF and Bgf Retail. Our strategy is to be long BGF Co & short BGF Retail and achieve net gains of 5...

Douglas Kim

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Market Cap (USDm)

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