Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023.</li>
<li>Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.</li>
<li>We highlight 33 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 1Q 2023.
Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.
We highlight 33 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023

<ul>
<li>In this insight, we discuss a pair trade between GS Holdings (078930 KS) (go long) and GS Retail (007070 KS) (go short).</li>
<li>The main investment thesis of this pair trade is that investors will allocate greater portion of their capital to stocks with deep discount to their NAVs such as GS Holdings.</li>
<li>As the household disposable income continues to get pressured, this will likely force the Korean households to reduce consumer spending, which is likely to negatively impact GS Retail.</li>
</ul>


In this insight, we discuss a pair trade between GS Holdings (078930 KS) (go long) and GS Retail (007070 KS) (go short).
The main investment thesis of this pair trade is that investors will allocate greater portion of their capital to stocks with deep discount to their NAVs such as GS Holdings.
As the household disposable income continues to get pressured, this will likely force the Korean households to reduce consumer spending, which is likely to negatively impact GS Retail.


A Pair Trade Between GS Holdings & GS Retail

<ul>
<li>In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage.</li>
<li>In general, more holdcos/quasi-holdcos have been outperforming the opcos in the past year, as compared to the previous years as more investors seek value-oriented, deep NAV discount stocks.</li>
<li>We highlight 26 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage.
In general, more holdcos/quasi-holdcos have been outperforming the opcos in the past year, as compared to the previous years as more investors seek value-oriented, deep NAV discount stocks.
We highlight 26 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Spreads Opportunities Amid Market Carnage

Event-Driven

<ul>
<li>The history of Young Poong Group goes back nearly 73 years ago in 1949 when two young men Ki-ho Choi and Byeong-hee Jang founded Young Poong.</li>
<li>Young Poong Group and Korea Zinc could be separated from each other with the Choi family controlling Korea Zinc and Jang family controlling Young Poong and related affiliates.</li>
<li>The bullish case for Young Poong and Korea Zinc would be that once they are separated, there could be greater management transparency and ownership structure which could boost overall efficiency. </li>
</ul>


The history of Young Poong Group goes back nearly 73 years ago in 1949 when two young men Ki-ho Choi and Byeong-hee Jang founded Young Poong.
Young Poong Group and Korea Zinc could be separated from each other with the Choi family controlling Korea Zinc and Jang family controlling Young Poong and related affiliates.
The bullish case for Young Poong and Korea Zinc would be that once they are separated, there could be greater management transparency and ownership structure which could boost overall efficiency. 


A Separation of Korea Zinc Group & Young Poong Group by the Choi & Jang Families?

<ul>
<li>
<a href="https://www.smartkarma.com/entities/samyang-tongsang-co-ltd" target="_blank" data-smartkarma-citation="entities:19909:1" rel="noopener">Samyang Tongsang (002170 KS)</a> is the 14th company in our Korea Small Cap Gems series.</li>
<li>Samyang Tongsang's net cash/market cap ratio is 124%, one of the highest among Korea companies with more than 100 billion won in market cap. </li>
<li>Chairman Huh (age 84) still has a 20% stake in the company. There could be material changes to corporate governance if the ownership structure changes in a few years.</li>
</ul>



Samyang Tongsang (002170 KS) is the 14th company in our Korea Small Cap Gems series.
Samyang Tongsang's net cash/market cap ratio is 124%, one of the highest among Korea companies with more than 100 billion won in market cap. 
Chairman Huh (age 84) still has a 20% stake in the company. There could be material changes to corporate governance if the ownership structure changes in a few years.


Korea Small Cap Gem #14: Samyang Tongsang

South Korea

GS Holdings is a holding company, which operates subsidiaries including GS Caltex Oil, GS Power, GS Home Shopping, GS Retail, and GS Sports.

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GS Holdings (078930 KS)

Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023. We highlight 33 pair trades that...

Douglas Kim

A Pair Trade Between GS Holdings & GS Retail

In this insight, we discuss a pair trade between GS Holdings (078930 KS) (go long) and GS Retail (007070 KS) (go short).

Douglas Kim

Korean Holdcos Vs Opcos Gap Spreads Opportunities Amid Market Carnage

In this insight, we highlight the pricing gap divergence of the major Korean holdcos and opcos amid market carnage. We highlight 26 pair trades...

Douglas Kim

A Separation of Korea Zinc Group & Young Poong Group by the Choi & Jang Families?

Young Poong Group and Korea Zinc could be separated from each other with the Choi family controlling Korea Zinc and Jang family controlling Young...

Douglas Kim

Korea Small Cap Gem #14: Samyang Tongsang

Samyang Tongsang has net cash of 215 billion won. Given that its market cap of 173 billion won, its net cash/market cap ratio is 124%.

Douglas Kim

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