Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>Dongwon Industries (006040 KS) plans to merge with Dongwon Enterprise, paving the way for the latter company to complete a back door public listing.</li>
<li>We believe this merger between Dongwon Industries and Dongwon Enterprise will have a positive impact on Dongwon Industries.</li>
<li>Once the merger is completed, there could be less pressure "to keep the share price of Dongwon Industries intentionally low" in order have more beneficial merger ratio with Dongwon Enteprise. </li>
</ul>


Dongwon Industries (006040 KS) plans to merge with Dongwon Enterprise, paving the way for the latter company to complete a back door public listing.
We believe this merger between Dongwon Industries and Dongwon Enterprise will have a positive impact on Dongwon Industries.
Once the merger is completed, there could be less pressure "to keep the share price of Dongwon Industries intentionally low" in order have more beneficial merger ratio with Dongwon Enteprise. 


Merger of Dongwon Industries & Dongwon Enterprise

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

Hanil Cement Co Ltd/New / Index Rebalance

<ul>
<li>Over 3/4th of the way through the review period for the June rebalance, we see 7 potential changes to the KOSPI200 Index. Most are high probability changes.</li>
<li>Potential inclusions: F&amp;F (383220 KS), SD Biosensor (137310 KS), Meritz Fire &amp; Marine (000060 KS), Iljin Hysolus (271940 KS), K Car (381970 KS), Hanil Cement (300720 KS), Hana Tour (039130).</li>
<li>Potential deletions: Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Nexen Tire (002350 KS), Hyundai Home Shopping (057050 KS), Cuckoo Homesys (284740 KS), Sk Discovery (006120), Grand Korea Leisure (114090).</li>
</ul>


Over 3/4th of the way through the review period for the June rebalance, we see 7 potential changes to the KOSPI200 Index. Most are high probability changes.
Potential inclusions: F&amp;F (383220 KS), SD Biosensor (137310 KS), Meritz Fire &amp; Marine (000060 KS), Iljin Hysolus (271940 KS), K Car (381970 KS), Hanil Cement (300720 KS), Hana Tour (039130).
Potential deletions: Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Nexen Tire (002350 KS), Hyundai Home Shopping (057050 KS), Cuckoo Homesys (284740 KS), Sk Discovery (006120), Grand Korea Leisure (114090).


KOSPI200 June Index Rebalance Preview: 7 Changes as Adds Outperform Deletes

Quantitative Analysis

<ul>
<li>In this insight, we provide the data analysis regarding most shorted stocks and short selling ratios for stocks in KOSPI. </li>
<li>Among these 20 most shorted stocks in KOSPI, the % changes in the short amount on a one week and one month basis were -0.2% and 6.4%, respectively.</li>
<li>Among these 20 most shorted stocks in KOSPI, three stocks with the biggest decline in shorts on a one month basis included Krafton, Kumho Petro Chemical, and Samsung Heavy Industries. </li>
</ul>


In this insight, we provide the data analysis regarding most shorted stocks and short selling ratios for stocks in KOSPI. 
Among these 20 most shorted stocks in KOSPI, the % changes in the short amount on a one week and one month basis were -0.2% and 6.4%, respectively.
Among these 20 most shorted stocks in KOSPI, three stocks with the biggest decline in shorts on a one month basis included Krafton, Kumho Petro Chemical, and Samsung Heavy Industries. 


Korea Short Selling Data Analysis: Celltrion, Amorepacific, Hotel Shilla, & Hanssem

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.

<ul>
<li>LG Energy's KOSPI 200 Fast Entry review period ended this Monday, and KRX immediately announced LG Energy's Fast Entry to KOSPI 200. Dongwon F&amp;B leaves the Index for LG Energy.</li>
<li>LG Energy's passive inflow is ₩202.2B at the close on March 10, 0.66x ADTV. On the other hand, Dongwon F&amp;B's passive outflow is ₩4.0B, representing 5.84x ADTV.</li>
<li>LG Energy's impact size is large enough to affect the price right before the implementation. In particular, since K-New Deal rebalancing occurs after March 10, the effect can be aggravated.</li>
</ul>


LG Energy's KOSPI 200 Fast Entry review period ended this Monday, and KRX immediately announced LG Energy's Fast Entry to KOSPI 200. Dongwon F&amp;B leaves the Index for LG Energy.
LG Energy's passive inflow is ₩202.2B at the close on March 10, 0.66x ADTV. On the other hand, Dongwon F&amp;B's passive outflow is ₩4.0B, representing 5.84x ADTV.
LG Energy's impact size is large enough to affect the price right before the implementation. In particular, since K-New Deal rebalancing occurs after March 10, the effect can be aggravated.


LG Energy KOSPI 200 Fast Entry: Passive Impact on March 10

<ul>
<li>On 22 February, the KRX announced that LG Energy Solution (373220 KS) will be included in numerous local indices including KOSPI 200, KOSPI 100, and KRX 100 effective 3/11/2022.</li>
<li>This has been widely expected by the market. Due to the inclusion in KOSPI 200, investors will be able to short LG Energy Solution starting 11 March. </li>
<li>Once Dongwon F&amp;B is excluded from the KOSPI 200 index, this could be a key buying opportunity on this stock, given the company's solid fundamentals. </li>
</ul>


On 22 February, the KRX announced that LG Energy Solution (373220 KS) will be included in numerous local indices including KOSPI 200, KOSPI 100, and KRX 100 effective 3/11/2022.
This has been widely expected by the market. Due to the inclusion in KOSPI 200, investors will be able to short LG Energy Solution starting 11 March. 
Once Dongwon F&amp;B is excluded from the KOSPI 200 index, this could be a key buying opportunity on this stock, given the company's solid fundamentals. 


KOSPI 200: LG Energy Solution Inclusion and Dongwon F&B Exclusion

South Korea

Dongwon F&B Co., Ltd. manufactures various processed food products. The Company' s products include agricultural and marine products, beverages, dairy products, processed meat, fast food, frozen food, and ginseng. The company's main product in early stage was canned tuna and expanded their business into a variety of food production.

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Dongwon F&B (049770 KS)

Merger of Dongwon Industries & Dongwon Enterprise

Dongwon Industries plans to merge with Dongwon Enterprise, paving the way for the latter company to complete a backdoor public listing. This merger...

Douglas Kim

KOSPI200 June Index Rebalance Preview: 7 Changes as Adds Outperform Deletes

With just over a month to go in the review period, we see 7 potential changes to the KOSPI200 Index. Most changes are high probability and the...

Brian Freitas

Korea Short Selling Data Analysis: Celltrion, Amorepacific, Hotel Shilla, & Hanssem

Among these 20 most shorted stocks in KOSPI, the % changes in the short amount on a one week and one month basis were -0.2% and 6.4%, respectively.

Douglas Kim

LG Energy KOSPI 200 Fast Entry: Passive Impact on March 10

KRX announced LG Energy's Fast Entry to KOSPI 200. Dongwon F&B leaves the Index. The passive impact on the implementation date, combined with K-New...

Sanghyun Park

KOSPI 200: LG Energy Solution Inclusion and Dongwon F&B Exclusion

On 22 February, the KRX announced that LG Energy Solution (373220 KS) will be included in numerous local indices including KOSPI 200, KOSPI 100,...

Douglas Kim

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