Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Nov 21st. The aggregated short interest was USD11.4bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Samyang Food, Kakao, NAVER, HD HYUNDAI HEAVY INDUSTRIES, SK Hynix.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Nov 21st. The aggregated short interest was USD11.4bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Samyang Food, Kakao, NAVER, HD HYUNDAI HEAVY INDUSTRIES, SK Hynix.


KRX Short Interest Weekly (Nov 21st): Samyang Food, Kakao, NAVER, HD HYUNDAI HEAVY INDUSTRIES

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>We provide updated NAV valuations of Doosan Corp (000150 KS), Hanwha Corporation (000880 KS), CJ Corp (001040 KS), GS Holdings (078930 KS), and LOTTE Corporation (004990 KS).</li>
<li>These holding companies' outperformance has been driven by investors' perception that the new Lee Jae-Myung administration will make real changes to improve corporate governance policies that could unlock greater value. </li>
<li><em><strong>The share prices of Hanwha Corp, Doosan Corp, CJ Corp, GS Holdings, and Lotte Corp are up on average 97% YTD. </strong></em></li>
</ul>


We provide updated NAV valuations of Doosan Corp (000150 KS), Hanwha Corporation (000880 KS), CJ Corp (001040 KS), GS Holdings (078930 KS), and LOTTE Corporation (004990 KS).
These holding companies' outperformance has been driven by investors' perception that the new Lee Jae-Myung administration will make real changes to improve corporate governance policies that could unlock greater value. 
The share prices of Hanwha Corp, Doosan Corp, CJ Corp, GS Holdings, and Lotte Corp are up on average 97% YTD. 


Updated NAV Valuations of Doosan Corp, Hanwha Corp, CJ Corp, GS Holdings, and Lotte Corp

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

<ul>
<li>Personally, the key trading angle is Kum Yang’s exit, which could slash entry costs for the capital raise, with the review announcement dropping as stock rights trading starts.</li>
<li>Along with the usual hit to the pricing from index trackers unloading for rebalancing, there’s a strong chance their sell orders might also include stock rights.</li>
<li>From an entry cost perspective, this November review could trigger a sharp, short-term drop in costs due to stock rights dumping, similar to what we saw with CJ CGV.</li>
</ul>


Personally, the key trading angle is Kum Yang’s exit, which could slash entry costs for the capital raise, with the review announcement dropping as stock rights trading starts.
Along with the usual hit to the pricing from index trackers unloading for rebalancing, there’s a strong chance their sell orders might also include stock rights.
From an entry cost perspective, this November review could trigger a sharp, short-term drop in costs due to stock rights dumping, similar to what we saw with CJ CGV.


Connecting the Dots Between Kum Yang’s Rights Offer & Global Index November Review

<ul>
<li>LG Display's tight stock rights trading prompts a need to assess potential trading opportunities. Taihan Electric Wire's concurrent capital increase warrants close observation.</li>
<li>Watch for a potentially wider spread in Taihan Electric Wire's stock rights trading from the 22nd, given local institutional demand focus on LG Display may create a buying vacuum.</li>
<li>Observers speculate on a CJ CGV-like pattern at LG Display. With no current market movements, predicting such a scenario is difficult. Nonetheless, I'll monitor closely and share any developments.</li>
</ul>


LG Display's tight stock rights trading prompts a need to assess potential trading opportunities. Taihan Electric Wire's concurrent capital increase warrants close observation.
Watch for a potentially wider spread in Taihan Electric Wire's stock rights trading from the 22nd, given local institutional demand focus on LG Display may create a buying vacuum.
Observers speculate on a CJ CGV-like pattern at LG Display. With no current market movements, predicting such a scenario is difficult. Nonetheless, I'll monitor closely and share any developments.


Monitoring LG Display's Stock Rights Trading

<ul>
<li>Hanwha Ocean's share price declined by 5% today, mainly due to local media reports about a potential capital raise of nearly 2 trillion won to 2.5 trillion won. </li>
<li>Although the company has not officially announced a rights offering, we believe the probability of Hanwha Ocean announcing a major rights offering is relatively high in the next 3-6 months. </li>
<li>We estimate this probability range is closer to about 60-70%. The company needs additional capital to improve its highly leveraged balance sheet and to make major investments. </li>
</ul>


Hanwha Ocean's share price declined by 5% today, mainly due to local media reports about a potential capital raise of nearly 2 trillion won to 2.5 trillion won. 
Although the company has not officially announced a rights offering, we believe the probability of Hanwha Ocean announcing a major rights offering is relatively high in the next 3-6 months. 
We estimate this probability range is closer to about 60-70%. The company needs additional capital to improve its highly leveraged balance sheet and to make major investments. 


Hanwha Ocean: Potential Capital Raise of Nearly 2 Trillion Won

South Korea

CJ CGV Co., Ltd. develops and operates multi-screen movie theaters in South Korea.  The Company's theater complex also conducts stores and restaurants in theaters, and offers advertisement through screens.

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CJ CGV Co Ltd (079160 KS)

KRX Short Interest Weekly (Nov 21st): Samyang Food, Kakao, NAVER, HD HYUNDAI HEAVY INDUSTRIES

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samyang Food, Kakao, NAVER, HD HYUNDAI HEAVY...

Ke Yan, CFA, FRM

Updated NAV Valuations of Doosan Corp, Hanwha Corp, CJ Corp, GS Holdings, and Lotte Corp

We provide updated NAV valuations of Doosan Corp (000150 KS), Hanwha Corporation (000880 KS), CJ Corp (001040 KS), GS Holdings (078930 KS), and...

Douglas Kim

Connecting the Dots Between Kum Yang’s Rights Offer & Global Index November Review

This post outlines the current screening status of the Global Index November Review for Korean stocks and explores how it could impact Kum Yang's...

Sanghyun Park

Monitoring LG Display's Stock Rights Trading

This post delves into the observations made in LG Display's stock rights trading and examines the potential trading opportunities that may stem...

Sanghyun Park

Hanwha Ocean: Potential Capital Raise of Nearly 2 Trillion Won

Hanwha Ocean completed the subscription for its 1.5 trillion won rights offering targeting employee stock ownership association and existing...

Douglas Kim

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52-week Range

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