Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>In this insight, we discuss the recent Korean stock portfolio allocation changes by the NPS.</li>
<li>The data suggests that NPS has been increasing its holdings into more defensive sectors such as insurance, convenience stores, and industrials. </li>
<li>On the other hand, it has been decreasing capital allocation in consumer discretionary related stocks.</li>
</ul>


In this insight, we discuss the recent Korean stock portfolio allocation changes by the NPS.
The data suggests that NPS has been increasing its holdings into more defensive sectors such as insurance, convenience stores, and industrials. 
On the other hand, it has been decreasing capital allocation in consumer discretionary related stocks.


NPS: Increasing Capital Allocation to More Defensive Stocks in Korea

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.</li>
<li>Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.</li>
<li>We highlight 38 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.
Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.
We highlight 38 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2023

Equity Capital Markets

Doosan Robotics  / Equity Capital Markets

<ul>
<li>The Doosan Group is aiming to complete the IPO of Doosan Robotics in 2H 2023. Doosan Robotics is expected to be one of the largest IPOs in Korea in 2023. </li>
<li>The local media have mentioned that Doosan Robotics could receive at least 1 trillion won (US$0.8 billion) in market cap valuation. </li>
<li>Established in 2015, Doosan Corp owns a 90.9% stake in Doosan Robotics, which is the largest collaborative robot manufacturer in Korea.</li>
</ul>


The Doosan Group is aiming to complete the IPO of Doosan Robotics in 2H 2023. Doosan Robotics is expected to be one of the largest IPOs in Korea in 2023. 
The local media have mentioned that Doosan Robotics could receive at least 1 trillion won (US$0.8 billion) in market cap valuation. 
Established in 2015, Doosan Corp owns a 90.9% stake in Doosan Robotics, which is the largest collaborative robot manufacturer in Korea.


Doosan Robotics (Number One Player in Collaborative Robots in Korea) & NAV Analysis of Doosan Corp

Thematic (Sector/Industry)

<ul>
<li>There has been a sharp increase in unsold housing units in Korea. There were 68k unsold housing units in Korea at the end of 2022, up 278% YoY</li>
<li>Unsold housing units is likely to get worse in Korea in the coming months driven by higher housing units supply, stubbornly high interest rates, and increasing probability of global recession. </li>
<li>We believe there is a sound trading opportunity of shorting a basket of large construction stocks including Hyundai E&amp;C, GS E&amp;C, and Daewoo E&amp;C over the next 6-12 months.</li>
</ul>


There has been a sharp increase in unsold housing units in Korea. There were 68k unsold housing units in Korea at the end of 2022, up 278% YoY
Unsold housing units is likely to get worse in Korea in the coming months driven by higher housing units supply, stubbornly high interest rates, and increasing probability of global recession. 
We believe there is a sound trading opportunity of shorting a basket of large construction stocks including Hyundai E&amp;C, GS E&amp;C, and Daewoo E&amp;C over the next 6-12 months.


A Sharp Increase in Unsold Housing Units in Korea: A Trading Opportunity

Event-Driven

<ul>
<li>On 7 March, Doosan Bobcat announced a block deal sale of 4.87 million shares, representing 4.8% of outstanding shares. The block deal discount range is from 6.11% to 8.03%. </li>
<li>We have a Negative view on this block deal sale and we continue to have a Negative view on Doosan Bobcat's shares.</li>
<li>There are visible signs of the construction sector slowdown in North America and Europe driven by higher interest rates, housing price declines, and decline in the residential/commercial construction markets.</li>
</ul>


On 7 March, Doosan Bobcat announced a block deal sale of 4.87 million shares, representing 4.8% of outstanding shares. The block deal discount range is from 6.11% to 8.03%. 
We have a Negative view on this block deal sale and we continue to have a Negative view on Doosan Bobcat's shares.
There are visible signs of the construction sector slowdown in North America and Europe driven by higher interest rates, housing price declines, and decline in the residential/commercial construction markets.


Doosan Bobcat: Block Deal Sale of 4.8% of Outstanding Shares

South Korea

Doosan Enerbility Co., Ltd. manufactures and distributes construction machines. The Company produces gas turbines, engines, turbine generators, boilers, power plant equipment, and other related products. Doosan Enerbility also offers energy solutions for thermal power, nuclear power, and renewable energy.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Doosan Enerbility (034020 KS)

NPS: Increasing Capital Allocation to More Defensive Stocks in Korea

In this insight, we discuss the recent Korean stock portfolio allocation changes by the NPS. The data suggests that NPS has been increasing its...

Douglas Kim

Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023. We highlight 38 pair trades that...

Douglas Kim

Doosan Robotics (Number One Player in Collaborative Robots in Korea) & NAV Analysis of Doosan Corp

Doosan Group is aiming to complete the IPO of Doosan Robotics in 2H 2023. Doosan Robotics is expected to be one of the largest IPOs in Korea in...

Douglas Kim

A Sharp Increase in Unsold Housing Units in Korea: A Trading Opportunity

We believe there is a sound trading opportunity of shorting a basket of large construction stocks including Hyundai E&C, GS E&C, and Daewoo E&C...

Douglas Kim

Doosan Bobcat: Block Deal Sale of 4.8% of Outstanding Shares

On 7 March, Doosan Bobcat announced a block deal sale of 4.87 million shares, representing 4.8% of outstanding shares. The block deal discount...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)