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>Long/Short basket trading on an equal weight using only six stocks for a 10% ceiling reversion with SungEel and Sebitchem would have delivered a daily yield of close to 2%.</li>
<li>An outright position on SungEel and Sebitchem and the biggest mover, Ecopro BM, alone would have delivered a pretty juicy yield of 4.2%.</li>
<li>The rebalancing of this ETF is an event that allows you to bet on highly predictable share price movements by forming a basket with a relatively small number of stocks.</li>
</ul>


Long/Short basket trading on an equal weight using only six stocks for a 10% ceiling reversion with SungEel and Sebitchem would have delivered a daily yield of close to 2%.
An outright position on SungEel and Sebitchem and the biggest mover, Ecopro BM, alone would have delivered a pretty juicy yield of 4.2%.
The rebalancing of this ETF is an event that allows you to bet on highly predictable share price movements by forming a basket with a relatively small number of stocks.


Tracing Back TIGER (WISE) Battery ETF Rebalancing on October 13

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Our base case valuation of JEIO is target price of 12,752 won per share, which is 15% lower than the low end of the IPO price range.</li>
<li>Given the low target price relative to the IPO price range, we have a Negative view of JEIO IPO.  </li>
<li>We estimate its sales to increase by 29.5% YoY to reach 117.1 billion won and operating profit to improve to 6.1 billion won in 2023 (turned black YoY).</li>
</ul>


Our base case valuation of JEIO is target price of 12,752 won per share, which is 15% lower than the low end of the IPO price range.
Given the low target price relative to the IPO price range, we have a Negative view of JEIO IPO.  
We estimate its sales to increase by 29.5% YoY to reach 117.1 billion won and operating profit to improve to 6.1 billion won in 2023 (turned black YoY).


<ul>
<li>JEIO is getting ready to complete its IPO in Korea in early November. The IPO price range is from 15,000 won to 18,000 won.</li>
<li>Based on the bankers' valuation, the expected market cap of the company is from 500 billion won to 600 billion won.</li>
<li>JEIO had a production capacity of 300 tons in 2021 for carbon nanotubes which is expected to increase to 1,000 tons in 2022 and to 3,000 tons by 2025. </li>
</ul>


JEIO is getting ready to complete its IPO in Korea in early November. The IPO price range is from 15,000 won to 18,000 won.
Based on the bankers' valuation, the expected market cap of the company is from 500 billion won to 600 billion won.
JEIO had a production capacity of 300 tons in 2021 for carbon nanotubes which is expected to increase to 1,000 tons in 2022 and to 3,000 tons by 2025. 


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wcp-co-ltd" target="_blank" data-smartkarma-citation="entities:36076:1" rel="noopener">WCP (WCP KS)</a>, a lithium-ion batteries separator company, has set its IPO price at KRW60,000 per share, a hefty 25-40% discount on the "desired" IPO price range of KRW80,000-100,000. </li>
<li>The target raise has declined from KRW720-900 billion (US$517-646 million) to KRW432 billion (US$310 million) due to the lower IPO price and offer shares.</li>
<li>While the final IPO price is now reasonable, the process smacks desperation and calls into question the credibility of the syndicate's forecasts. This is still an avoid.</li>
</ul>



WCP (WCP KS), a lithium-ion batteries separator company, has set its IPO price at KRW60,000 per share, a hefty 25-40% discount on the "desired" IPO price range of KRW80,000-100,000. 
The target raise has declined from KRW720-900 billion (US$517-646 million) to KRW432 billion (US$310 million) due to the lower IPO price and offer shares.
While the final IPO price is now reasonable, the process smacks desperation and calls into question the credibility of the syndicate's forecasts. This is still an avoid.


WCP IPO: Final IPO Price Set, Still an Avoid

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wcp-co-ltd" target="_blank" data-smartkarma-citation="entities:36076:1" rel="noopener">WCP (WCP KS)</a>, a lithium-ion batteries separator company, is set to launch its IPO of KRW900 billion (US$692 million). </li>
<li>We last discussed the IPO in <em><strong><a href="https://www.smartkarma.com/insights/wcp-ipo-updated-prospectus-solid-1h22-unchanged-and-unattractive-price-range" target="_blank" data-smartkarma-citation="insights:79052" rel="noopener">WCP IPO: Updated Prospectus, Solid 1H22, Unchanged and Unattractive Price Range</a></strong></em>.</li>
<li>Although the de-rating of peer multiples resulted in a decline in the syndicate's intrinsic value, the IPO price range of KRW80,000-100,000 remains unchanged. The IPO price range is unattractive.</li>
</ul>



WCP (WCP KS), a lithium-ion batteries separator company, is set to launch its IPO of KRW900 billion (US$692 million). 
We last discussed the IPO in WCP IPO: Updated Prospectus, Solid 1H22, Unchanged and Unattractive Price Range.
Although the de-rating of peer multiples resulted in a decline in the syndicate's intrinsic value, the IPO price range of KRW80,000-100,000 remains unchanged. The IPO price range is unattractive.


South Korea

Ecopro BM Co.,Ltd develops and manufactures advanced materials. The Company produces and sells high-nickel cathode materials and other products. Ecopro BM markets its products throughout Korea.

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Ecopro BM (247540 KS)

Tracing Back TIGER (WISE) Battery ETF Rebalancing on October 13

This post traces back and backtests the rebalancing of the WISE Battery ETF, which occurred last Thursday, to examine the correction degree of net...

Sanghyun Park

JEIO IPO Valuation Analysis

Our base case valuation of JEIO is target price of 12,752 won per share, which is 15% lower than the low end of the IPO price range.

Douglas Kim

JEIO IPO Preview

JEIO's IPO price range is from 15,000 won to 18,000 won. JEIO's production capacity of carbon nanotubes is expected to increase by 10x from 2021 to...

Douglas Kim

WCP IPO: Final IPO Price Set, Still an Avoid

While the final IPO price is now reasonable, the process smacks desperation and calls into question the credibility of the syndicate's forecasts....

Arun George

WCP IPO: Valuation Uncompelling

Although the de-rating of peer multiples resulted in a decline in the syndicate's intrinsic value, the IPO price range of KRW80,000-100,000 remains...

Arun George

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