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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

Hyundai Home Shopping Network / Index Rebalance

<ul>
<li>A third of the way through the review period, we see one potential change. There are four stocks that are close to inclusion zone and could lead to more changes.</li>
<li>Currently, Miwon Specialty Chemical Co (268280 KS) is an add while <a href="https://www.smartkarma.com/entities/hyundai-home-shopping-network-corp" target="_blank" data-smartkarma-citation="entities:2357:1" rel="noopener">Hyundai Home Shopping Network (057050 KS)</a> is a delete.</li>
<li>
<a href="https://www.smartkarma.com/entities/samyang-foods-co-ltd" target="_blank" data-smartkarma-citation="entities:9100:1" rel="noopener">Samyang Foods (003230 KS)</a>, <a href="https://www.smartkarma.com/entities/lotte-confectionery-co-ltd-1feb0155-08b6-44eb-bdbd-8d67cf757dac" target="_blank" data-smartkarma-citation="entities:25993:1" rel="noopener">Lotte Confectionery (280360 KS)</a>, <a href="https://www.smartkarma.com/entities/unid-co-ltd" target="_blank" data-smartkarma-citation="entities:11197:1" rel="noopener">Unid Co Ltd (014830 KS)</a> and <a href="https://www.smartkarma.com/entities/miwon-commercial-co-ltd" target="_blank" data-smartkarma-citation="entities:13416:1" rel="noopener">Miwon Commercial (002840 KS)</a> are close adds currently.</li>
</ul>


A third of the way through the review period, we see one potential change. There are four stocks that are close to inclusion zone and could lead to more changes.
Currently, Miwon Specialty Chemical Co (268280 KS) is an add while Hyundai Home Shopping Network (057050 KS) is a delete.

Samyang Foods (003230 KS), Lotte Confectionery (280360 KS), Unid Co Ltd (014830 KS) and Miwon Commercial (002840 KS) are close adds currently.


KOSPI200 Dec Index Rebalance Preview: Stocks Nearing the Inclusion Zone

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>In this insight, we provide an early look at the potential deletions and additions to KOSPI200 rebalance. </li>
<li>We provide the top 10 potential deletions including Cosmax Inc (192820 KS), Hyundai Home Shopping Network (057050 KS), and Samyang Holdings (000070 KS) to KOSPI200 (announcement in November 2022).</li>
<li>Our trading strategy for the KOSPI200 index would be to go short on a basket of the potential deletions and to go long on a basket of the potential additions.</li>
</ul>


In this insight, we provide an early look at the potential deletions and additions to KOSPI200 rebalance. 
We provide the top 10 potential deletions including Cosmax Inc (192820 KS), Hyundai Home Shopping Network (057050 KS), and Samyang Holdings (000070 KS) to KOSPI200 (announcement in November 2022).
Our trading strategy for the KOSPI200 index would be to go short on a basket of the potential deletions and to go long on a basket of the potential additions.


An Early Look at Potential Deletions and Additions to KOSPI200

Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>Procter &amp; Gamble Co (PG US), Amorepacific Corp (090430 KS), L'Oreal SA (OR FP), <a href="https://www.smartkarma.com/entities/lg-household-health-care" target="_blank" data-smartkarma-citation="entities:6501:1" rel="noopener">LG Household &amp; Health Care (051900 KS)</a>,  and Kao Corp (4452 JP), lead product innovation table</li>
<li>Among the smaller names <a href="https://www.smartkarma.com/entities/cosmax-inc" target="_blank" data-smartkarma-citation="entities:4491:1" rel="noopener">Cosmax Inc (192820 KS)</a>, Pola Orbis Holdings (4927 JP),  <a href="https://www.smartkarma.com/entities/kolmar-bnh-co-ltd" target="_blank" data-smartkarma-citation="entities:33240:1" rel="noopener">Kolmar BNH (200130 KS)</a>, have been relatively prolific in innovating over the last three years.</li>
<li>Apart from the quality of the ingredients, consistency, stability of the formulations, the packaging, dispensing, virtual try-on, personalized recommendations, sustainability seem to be some of the key trends in innovations.</li>
</ul>


Procter &amp; Gamble Co (PG US), Amorepacific Corp (090430 KS), L'Oreal SA (OR FP), LG Household &amp; Health Care (051900 KS),  and Kao Corp (4452 JP), lead product innovation table
Among the smaller names Cosmax Inc (192820 KS), Pola Orbis Holdings (4927 JP),  Kolmar BNH (200130 KS), have been relatively prolific in innovating over the last three years.
Apart from the quality of the ingredients, consistency, stability of the formulations, the packaging, dispensing, virtual try-on, personalized recommendations, sustainability seem to be some of the key trends in innovations.


Insights from Datamining Technical Publications - Cosmetics

<div class="content-highlight">
<p><strong>Trading Opportunity for the Rights Offering</strong> - For the short term investors, we think that there could be an attractive trading opportunity regarding Cosmax. Given the relatively high upside (current price vs expected rights offering price), we would participate in the rights offering.</p>
<p>We also think that there is a relatively solid probability of the COVID-19 cases declining in Korea in the next several weeks and that Xi Jinping could come to South Korea sometime in August/September. As a result, we believe that there is a good chance that the Korean cosmetics stocks continue to outperform in the 2-3 months. </p>
</div><p>In this insight, we discuss the details of the <a href="https://www.smartkarma.com/entities/cosmax-inc" target="_blank" data-smartkarma-citation="entities:4491:1" rel="noopener">Cosmax Inc (192820 KS)</a> rights offering details and potential trading opportunities. Cosmax is one of the top five listed cosmetics companies in Korea. It currently has a market cap of 1.3 trillion won ($1.2 billion).</p><p>On 26 April 2021 (after market close), Cosmax announced that it will issue 1.3 million shares to raise 144.3 billion won. After this announcement, the stock fell 11.5% on the following day. Since then, the stock price has recovered nicely. From 26 April to 8 June 2021, Cosmax's share price is down 3%. </p><p>The expected rights offering price is 103,000 won and based on the current price of 130,000 won, it represents a 26.2% upside. Given this solid upside and the recent recovery of the stock price, there is likely to be relatively solid demand for this rights offering. </p><p>The rights offering subscription dates for the existing shareholders are from 17 to 18 June 2021. The new shares listing date is on 8 July. There is a 11.5% shares dilution associated with this rights offering. </p><p>Currently, Cosmax BTI is the largest controlling shareholder with a 26.2% in <a href="https://www.smartkarma.com/entities/cosmax-inc" target="_blank" data-smartkarma-citation="entities:4491:1" rel="noopener">Cosmax Inc (192820 KS)</a>. </p>


Trading Opportunity for the Rights Offering - For the short term investors, we think that there could be an attractive trading opportunity regarding Cosmax. Given the relatively high upside (current price vs expected rights offering price), we would participate in the rights offering.
We also think that there is a relatively solid probability of the COVID-19 cases declining in Korea in the next several weeks and that Xi Jinping could come to South Korea sometime in August/September. As a result, we believe that there is a good chance that the Korean cosmetics stocks continue to outperform in the 2-3 months. 
In this insight, we discuss the details of the Cosmax Inc (192820 KS) rights offering details and potential trading opportunities. Cosmax is one of the top five listed cosmetics companies in Korea. It currently has a market cap of 1.3 trillion won ($1.2 billion).On 26 April 2021 (after market close), Cosmax announced that it will issue 1.3 million shares to raise 144.3 billion won. After this announcement, the stock fell 11.5% on the following day. Since then, the stock price has recovered nicely. From 26 April to 8 June 2021, Cosmax's share price is down 3%. The expected rights offering price is 103,000 won and based on the current price of 130,000 won, it represents a 26.2% upside. Given this solid upside and the recent recovery of the stock price, there is likely to be relatively solid demand for this rights offering. The rights offering subscription dates for the existing shareholders are from 17 to 18 June 2021. The new shares listing date is on 8 July. There is a 11.5% shares dilution associated with this rights offering. Currently, Cosmax BTI is the largest controlling shareholder with a 26.2% in Cosmax Inc (192820 KS). 

Cosmax Rights Offering Details & Trading Opportunities

Founder/CEO of ROK Advisory, ROK Advisory LLC

Ken S. Kim

Founder/CEO of ROK Advisory

ROK Advisory LLC

ROK is an independent research advisory firm. We guide you to minimize the information gap between foreign and local investors in Northeast Asia with a focus in Korea, Taiwan and Japan.

Independent Research Advisory Firm

Equity Bottom-Up

<div>While the details are scarce, local press is reporting that SKT and AMZN has been in talks for more than a year and would allow really an export/import biz on both of their channels (ie Korean products to be bought by US consumers and US products to be bought thru 11th St (SK's ecommerce portal) for Koreans. </div><div></div><div>This can't be good for the ecommerce players in Korea.  In the US, if you hear that AMZN is coming in whatever business, the whole sector falls.   Is Naver next? </div>

While the details are scarce, local press is reporting that SKT and AMZN has been in talks for more than a year and would allow really an export/import biz on both of their channels (ie Korean products to be bought by US consumers and US products to be bought thru 11th St (SK's ecommerce portal) for Koreans. This can't be good for the ecommerce players in Korea.  In the US, if you hear that AMZN is coming in whatever business, the whole sector falls.   Is Naver next? 

AMZN into Korea - "We Are Not Here to Take Part, We're Here to Take Over!"

South Korea

Cosmax, Inc. is a cosmetics manufacturer. The Company develops and produces a variety of cosmetics for men and women, such as basic and special skin care, makeup, hair care, and other beauty products. Cosmax manufactures its products on original equipment manufacturing (OEM) basis.

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Cosmax Inc (192820 KS)

KOSPI200 Dec Index Rebalance Preview: Stocks Nearing the Inclusion Zone

We currently see one potential change to the KOSPI200 in Dec, though there are 4 more changes possible. There will be a lot to trade on some stocks...

Brian Freitas

An Early Look at Potential Deletions and Additions to KOSPI200

We provide an early look at the potential deletions and additions to KOSPI200 rebalance. We provide the top 10 potential deletions including...

Douglas Kim

Insights from Datamining Technical Publications - Cosmetics

The beauty industry - where innovation can be real and driven by science, but sometimes just cosmetic to just change the perception

Pyari Menon

Cosmax Rights Offering Details & Trading Opportunities

In this insight, we discuss the details of the Cosmax Inc (192820 KS) rights offering details and potential trading opportunities.

Douglas Kim

AMZN into Korea - "We Are Not Here to Take Part, We're Here to Take Over!"

I guess the Koreans aren't scared of Amazon's entry into the ecommerce space! I'm a seller of Naver here on the news that Amazon will come into...

Ken S. Kim

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