Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>On 29 December, Ecopro Group announced large selling of Ecopro Co Ltd (086520 KS) and Ecopro BM (247540 KS) by Daisy Partners worth 272 billion won in December.</li>
<li>Daisy Partners is a company 100% owned by Chairman of Ecopro Group Lee Dong-Chae and his family members.</li>
<li>Daisy Partners is likely to sell more shares in Ecopro Co and Ecopro BM in the next several years to increase the foundation's capital to about 500 billion won.</li>
</ul>


On 29 December, Ecopro Group announced large selling of Ecopro Co Ltd (086520 KS) and Ecopro BM (247540 KS) by Daisy Partners worth 272 billion won in December.
Daisy Partners is a company 100% owned by Chairman of Ecopro Group Lee Dong-Chae and his family members.
Daisy Partners is likely to sell more shares in Ecopro Co and Ecopro BM in the next several years to increase the foundation's capital to about 500 billion won.


Insiders Related Daisy Partners Sells About 270 Billion Won of Ecopro Co and Ecopro BM

Equity Bottom-Up

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 4Q 2023.</li>
<li>Of the 38 pair trades, 18 of them involved holdcos outperforming opcos YTD and 20 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 4Q 2023.
Of the 38 pair trades, 18 of them involved holdcos outperforming opcos YTD and 20 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 4Q 2023

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Recent information leaked through local media reveals that KRX has ultimately opted not to list Ecopro Co's SSF in the upcoming September round.</li>
<li>Given the unusually high trading volume of at-the-money (ATM) options in the local SSO market, the market's interest in covered calls for dividend-yielding stocks can be substantial.</li>
<li>So, we should pay attention to stocks whose SSO is already listed or will be newly listed in September among those that have shifted their ex-dividend dates to post-dividend confirmation.</li>
</ul>


Recent information leaked through local media reveals that KRX has ultimately opted not to list Ecopro Co's SSF in the upcoming September round.
Given the unusually high trading volume of at-the-money (ATM) options in the local SSO market, the market's interest in covered calls for dividend-yielding stocks can be substantial.
So, we should pay attention to stocks whose SSO is already listed or will be newly listed in September among those that have shifted their ex-dividend dates to post-dividend confirmation.


Two Noteworthy Issues in Korea's SSF/SSO Selection in September Round

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

<ul>
<li>We take a look at <a href="https://www.smartkarma.com/entities/ecopro-co-ltd" target="_blank" data-smartkarma-citation="entities:19029:1" rel="noopener">Ecopro Co Ltd (086520 KS)</a>, <a href="https://www.smartkarma.com/entities/kum-yang-co-ltd" target="_blank" data-smartkarma-citation="entities:10364:1" rel="noopener">Kum Yang (001570 KS)</a> and <a href="https://www.smartkarma.com/entities/jyp-entertainment-corp" target="_blank" data-smartkarma-citation="entities:17598:1" rel="noopener">Jyp Entertainment (035900 KS)</a> since they appear to be on investor radars.</li>
<li>Foreign investors have been buyers while retail have been sellers in <a href="https://www.smartkarma.com/entities/ecopro-co-ltd" target="_blank" data-smartkarma-citation="entities:19029:1" rel="noopener">Ecopro Co</a> and <a href="https://www.smartkarma.com/entities/kum-yang-co-ltd" target="_blank" data-smartkarma-citation="entities:10364:1" rel="noopener">Kum Yang</a> over the last month, while foreign investors have continued to buy <a href="https://www.smartkarma.com/entities/jyp-entertainment-corp" target="_blank" data-smartkarma-citation="entities:17598:1" rel="noopener">Jyp Entertainment</a>.</li>
<li>Short interest on all stocks has dropped over the last month, though there has been a recent tick up in shorts on <a href="https://www.smartkarma.com/entities/jyp-entertainment-corp" target="_blank" data-smartkarma-citation="entities:17598:1" rel="noopener">Jyp Entertainment (035900 KS)</a>. </li>
</ul>


We take a look at Ecopro Co Ltd (086520 KS), Kum Yang (001570 KS) and Jyp Entertainment (035900 KS) since they appear to be on investor radars.
Foreign investors have been buyers while retail have been sellers in Ecopro Co and Kum Yang over the last month, while foreign investors have continued to buy Jyp Entertainment.
Short interest on all stocks has dropped over the last month, though there has been a recent tick up in shorts on Jyp Entertainment (035900 KS). 


Korea - A Look at Ecopro, Kumyang & JYP Entertainment

<ul>
<li>Yonhap News reported on the exclusive coverage of Ecopro BM and L&amp;F's KOSPI transfer listing.</li>
<li>L&amp;F announced through the disclosure that they are considering the KOSPI transfer listing. Ecopro BM told another local news outlet that they are not currently reviewing the KOSPI transfer listing.</li>
<li>It seems that L&amp;F's KOSPI transfer listing is almost a confirmed fact. However, the Ecopro company in question may be Ecopro Co, not Ecopro BM.</li>
</ul>


Yonhap News reported on the exclusive coverage of Ecopro BM and L&amp;F's KOSPI transfer listing.
L&amp;F announced through the disclosure that they are considering the KOSPI transfer listing. Ecopro BM told another local news outlet that they are not currently reviewing the KOSPI transfer listing.
It seems that L&amp;F's KOSPI transfer listing is almost a confirmed fact. However, the Ecopro company in question may be Ecopro Co, not Ecopro BM.


What We Know Until Now About L&F & Ecopro BM's Kospi Transfer Listing

South Korea

Ecopro Co., Ltd. specializes in developing chemical absorbent and NDC (Nano Carbon Ball) in the field of environmental materials for the prevention of air pollution.  The Company's products include environment-related chemical filters, second battery materials, and CO catalyst.

Ecopro Co Ltd (086520 KS)

Korean Holdcos Vs Opcos Gap Trading Opportunities in 4Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 4Q 2023. We highlight 38 pair trades that...

Douglas Kim

Two Noteworthy Issues in Korea's SSF/SSO Selection in September Round

This post delves into KRX's single-stock futures and options selection in the upcoming September round and discusses two critical issues.

Sanghyun Park

Korea - A Look at Ecopro, Kumyang & JYP Entertainment

Ecopro, JYP and Kumyang stock prices are volatile and a couple are trading sharply higher again today. The price spurts have implications for the...

Brian Freitas

What We Know Until Now About L&F & Ecopro BM's Kospi Transfer Listing

This post provides the latest update on today's news about the possibility of L&F and Ecopro BM's KOSPI transfer listing.

Sanghyun Park

Insiders Related Daisy Partners Sells About 270 Billion Won of Ecopro Co and Ecopro BM

On 29 December, Ecopro Group announced large selling of Ecopro Co Ltd (086520 KS) and Ecopro BM (247540 KS) by Daisy Partners worth 272 billion won...

Douglas Kim

Korean Holdcos Vs Opcos Gap Trading Opportunities in 4Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 4Q 2023. We highlight 38 pair trades that...

Douglas Kim

Two Noteworthy Issues in Korea's SSF/SSO Selection in September Round

This post delves into KRX's single-stock futures and options selection in the upcoming September round and discusses two critical issues.

Sanghyun Park

Korea - A Look at Ecopro, Kumyang & JYP Entertainment

Ecopro, JYP and Kumyang stock prices are volatile and a couple are trading sharply higher again today. The price spurts have implications for the...

Brian Freitas

What We Know Until Now About L&F & Ecopro BM's Kospi Transfer Listing

This post provides the latest update on today's news about the possibility of L&F and Ecopro BM's KOSPI transfer listing.

Sanghyun Park