Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>In this insight, we discuss the use of Smartkarma Smartscore system to screen stocks in KOSPI 100.</li>
<li>For top 50 companies (in KOSPI 100) in Smartscore rankings, their share prices were up on average 7% YTD. Bottom 50 companies had average share price decline of 7.8% YTD. </li>
<li>In using the Smartkarma Smartscore system, it may be appropriate to describe it in terms of <strong>"WHERE THERE IS SMOKE, STAY AWAY."</strong> </li>
</ul>


In this insight, we discuss the use of Smartkarma Smartscore system to screen stocks in KOSPI 100.
For top 50 companies (in KOSPI 100) in Smartscore rankings, their share prices were up on average 7% YTD. Bottom 50 companies had average share price decline of 7.8% YTD. 
In using the Smartkarma Smartscore system, it may be appropriate to describe it in terms of "WHERE THERE IS SMOKE, STAY AWAY." 


Outperformance Using Smartkarma Smartscore for KOSPI Stock Screen & Where There Is Smoke, Stay Away

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>2023 marked our eighth year covering Equity Capital Markets in Asia Pacific. In 2023, IPOs didn’t pick up much from the low base of 2022  while placements showed upward momentum.</li>
<li>We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115 placements.</li>
<li>For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.</li>
</ul>


2023 marked our eighth year covering Equity Capital Markets in Asia Pacific. In 2023, IPOs didn’t pick up much from the low base of 2022  while placements showed upward momentum.
We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115 placements.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.


Aequitas 2023 IPOs and Placements Performance Review - IPOs Forming a Low Base, Placements Pick Up

Event-Driven

<ul>
<li>There will be an end of lock up of 46% of EcoPro Materials (450080 KS)'s shares starting 17 May.</li>
<li>Post end of the lock-up, I think it is possible for Ecopro Co to sell a relatively large sized block of Ecopro Materials (3-7%) to raise additional capital for investments. </li>
<li>I am Negative on Ecopro Materials due to the potential for the insiders to sell a partial stake in the company that could further negatively impact its share price.</li>
</ul>


There will be an end of lock up of 46% of EcoPro Materials (450080 KS)'s shares starting 17 May.
Post end of the lock-up, I think it is possible for Ecopro Co to sell a relatively large sized block of Ecopro Materials (3-7%) to raise additional capital for investments. 
I am Negative on Ecopro Materials due to the potential for the insiders to sell a partial stake in the company that could further negatively impact its share price.


Ecopro Materials: End of Lockup of 46% of Outstanding Shares on 17 May

<ul>
<li>Samsung Electronics announced that it will revamp its executive compensation system to include treasury shares as incentives. Samsung has benchmarked TSMC in terms of paying treasury shares to its employees.</li>
<li>Samsung Electronics' decision to revamp its executive compensation system to include treasury shares as incentives aligns the interests of the shareholders along with the company's management.</li>
<li>Now that Samsung Electronics has incorporated stock based incentive system, it is likely that other Korean companies that could follow suit. </li>
</ul>


Samsung Electronics announced that it will revamp its executive compensation system to include treasury shares as incentives. Samsung has benchmarked TSMC in terms of paying treasury shares to its employees.
Samsung Electronics' decision to revamp its executive compensation system to include treasury shares as incentives aligns the interests of the shareholders along with the company's management.
Now that Samsung Electronics has incorporated stock based incentive system, it is likely that other Korean companies that could follow suit. 


Samsung Electronics: Revamping Executive Compensation to Include Stocks - Benchmarking TSMC

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Mar 27th. The aggregated short interest was USD14.6bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in HDKSOE, HyundaiEng&amp;Const, Hanmi Semi, HYBE, ECOPROBM.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Mar 27th. The aggregated short interest was USD14.6bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in HDKSOE, HyundaiEng&amp;Const, Hanmi Semi, HYBE, ECOPROBM.


KRX Short Interest Weekly (Mar 27th): HDKSOE, HyundaiEng&Const, Hanmi Semi, HYBE, ECOPROBM

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EcoPro Materials (450080 KS)

Outperformance Using Smartkarma Smartscore for KOSPI Stock Screen & Where There Is Smoke, Stay Away

We discuss the use of Smartkarma Smartscore system to screen stocks in KOSPI 100. In using the Smartkarma Smartscore system, the phrase "WHERE...

Douglas Kim

Aequitas 2023 IPOs and Placements Performance Review - IPOs Forming a Low Base, Placements Pick Up

2023 was our eight year of covering Asia ECM. We ended 2023 with an accuracy rate of 73.7% across 57 IPOs that we covered and 79.3% across 115...

Sumeet Singh

Ecopro Materials: End of Lockup of 46% of Outstanding Shares on 17 May

There will be an end of lock-up of 46% of EcoPro Materials' shares starting 17 May. I am Negative on Ecopro Materials due to the potential for the...

Douglas Kim

Samsung Electronics: Revamping Executive Compensation to Include Stocks - Benchmarking TSMC

Samsung Electronics announced it will revamp its executive compensation system to include treasury shares as incentives, better aligning the...

Douglas Kim

KRX Short Interest Weekly (Mar 27th): HDKSOE, HyundaiEng&Const, Hanmi Semi, HYBE, ECOPROBM

We analyzed KRX short interest report for the past week and highlighted short interest changes in HDKSOE, HyundaiEng&Const, Hanmi Semi, HYBE,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)