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.

Event-Driven

<ul>
<li>With the price almost 10% above ₩20,000, it's practically fair to regard MBK's tender offer as effectively canceled, raising the question of the proxy battle's potential continuation.</li>
<li>There is a significant likelihood that MBK has prepared a next-phase plan involving an upward adjustment of the offering price, considering the tight situation of successfully securing the target volume.</li>
<li>Essentially, there's a high likelihood that the situation will resemble the earlier battle between HYBE and Kakao Corp over S.M. Entertainment Co at the start of this year.</li>
</ul>


With the price almost 10% above ₩20,000, it's practically fair to regard MBK's tender offer as effectively canceled, raising the question of the proxy battle's potential continuation.
There is a significant likelihood that MBK has prepared a next-phase plan involving an upward adjustment of the offering price, considering the tight situation of successfully securing the target volume.
Essentially, there's a high likelihood that the situation will resemble the earlier battle between HYBE and Kakao Corp over S.M. Entertainment Co at the start of this year.


Navigating the Potential of Hankook & Company's Revised Tender Offer

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX Stocks as of Nov 3rd which has an aggregated short interest worth USD12.7bn.</li>
<li>We tabulate league table 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 Ecopro, Samsung Sdi Co, Sk Hynix, Jusung Engineeri, Hyundai Bioscien, Leeno Industrial.</li>
</ul>


We analyzed the changes in short interest of KRX Stocks as of Nov 3rd which has an aggregated short interest worth USD12.7bn.
We tabulate league table 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 Ecopro, Samsung Sdi Co, Sk Hynix, Jusung Engineeri, Hyundai Bioscien, Leeno Industrial.


KRX Shorts: Top Changes Prior to Short Ban

CEO, Helixtap

Farah Miller

Global Commodities Alternative Data and Insights

Helixtap

Helixtap collects, processes and distributes proprietary data, analyses and forecasts for the rubber, latex and automotive markets

Commodities

<ul><li>Feb 2023: Tire company results preview(03 Feb) We have teamed up with Tire Industry Research, based in the United Kingdom, for this article.</li><li>Tire Industry research provides reports and research on the global tire industry. Results season is upon us, and the tire makers are starting to report on the last 12 months, with some of their expectations for the coming months.So far: Trelleborg, Ceat, Hankook, Apollo and JK Tyre have reported their results for the period to 31 December 2022.</li><li>Half a dozen of the bigger Chinese tire companies have also release their broad estimates of revenues and profits for the full year.Some of the big players (Nokian, Goodyear, MRF, Michelin, Toyo and others) will reveal their numbers next week.</li></ul>

Feb 2023: Tire company results preview(03 Feb) We have teamed up with Tire Industry Research, based in the United Kingdom, for this article.Tire Industry research provides reports and research on the global tire industry. Results season is upon us, and the tire makers are starting to report on the last 12 months, with some of their expectations for the coming months.So far: Trelleborg, Ceat, Hankook, Apollo and JK Tyre have reported their results for the period to 31 December 2022.Half a dozen of the bigger Chinese tire companies have also release their broad estimates of revenues and profits for the full year.Some of the big players (Nokian, Goodyear, MRF, Michelin, Toyo and others) will reveal their numbers next week.

<ul>
<li>The ETF operator's room to play around in index weighting is relatively minimal. Rebalancing is completed in one trading day. So, the actual passive impact was more intense and substantial.</li>
<li>The rebalancing result based on the average float-adjusted MC from May 2 to yesterday: Additions <strong>Iljin Hysolus, Halla Holdings, &amp; DTR Automotive</strong> / Deletions <strong>Nexen Tire, Kumho HT, &amp; Seoyon</strong>
</li>
<li>Their estimated passive impact is more significant than that of the previous rebalancing. It is substantial enough to consider a preemptive position build-up for them.</li>
</ul>


The ETF operator's room to play around in index weighting is relatively minimal. Rebalancing is completed in one trading day. So, the actual passive impact was more intense and substantial.
The rebalancing result based on the average float-adjusted MC from May 2 to yesterday: Additions Iljin Hysolus, Halla Holdings, &amp; DTR Automotive / Deletions Nexen Tire, Kumho HT, &amp; Seoyon

Their estimated passive impact is more significant than that of the previous rebalancing. It is substantial enough to consider a preemptive position build-up for them.


KRX Autos (KODEX ETF) Rebalancing: Watch Iljin HySolus, Halla Holdings, & DTR Automotive

Index Rebalance

Myoung Shin Industrial Co.,Ltd / Index Rebalance

<p>Myungshin Industries is running again. Myungshin Industrial is considered a Tesla-related stock because Tesla is a major customer. As Tesla recently announced surprise earnings, the stock price of Myungshin Industrial is also moving up.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/220/951/original/1.png?1627534508" class="editor-image img-responsive" data-smartkarma-image-id="220951"></figure></section><p>In the past five trading days alone, the share price has risen more than 8%. Its current market cap has exceeded 1.7 trillion won.</p><div class="content-highlight"><p><strong>So this stock appears to offer some opportunities from an index rebalancing trading perspective as well.</strong></p></div><p>The first thing to consider is the inclusion of the KOSPI 200. In the rebalancing of last June, the stock price did not meet the market cap threshold due to the share price being drifted sideways for several months. However, in this December's rebalancing, if the current share price uptrend continues, the possibility of inclusion seems quite high.</p><p><strong>However, we can find trading opportunities in the KRX Autos sector index rebalancing, which takes place ahead of the KOSPI 200 rebalancing in December.</strong></p><p>As for KRX Autos, KODEX currently manages an ETF that tracks it, and it has recently been showing good returns, resulting in a large inflow of funds. The AUM now amounts to ₩649.0B, which isn't bad for an index containing only 17 constituents.</p><p>This is a float-adjusted market cap-weighted index with a 20% cap. Rebalancing takes place annually in September. The implementation date is the first trading day of the week following the last trading day for KOSPI 200 futures contracts. So, September 10 will be the implementation date for this year, meaning that we will see rebalancing trading at the close on September 9.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" style="width: 746px;" data-sheets-value='{"1":2,"2":"Index summary"}'>Index summary</td></tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Index name"}'>Index name</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"KRX Autos"}'>KRX Autos</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"ETF"}'>ETF</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"Samsung Kodex Autos ETF"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'><div><div>Samsung Kodex Autos ETF</div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"091180"}' data-sheets-formula='="091180"'>091180</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"AUM"}'><strong>AUM</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":3,"3":649.04425}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[1]C[0]*R[2]C[0]/1000000000"><strong>₩649.0B</strong></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="width: 465px;" data-sheets-value='{"1":3,"3":23305}' data-sheets-numberformat='[null,4,"[$₩]#,##0",1]' data-sheets-formula='=googlefinance(R[-2]C[0], "price")'>₩23,305</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"SO"}'>SO</td>
<td style="width: 465px;" data-sheets-value='{"1":3,"3":27850000}' data-sheets-numberformat='[null,2,"#,##0",1]'>27,850,000</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Number of constituents"}'>Number of constituents</td>
<td style="width: 465px;" data-sheets-value='{"1":3,"3":17}' data-sheets-numberformat='[null,2,"#,##0",1]'>17</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Weight type"}'>Weight type</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"Float-adjusted market cap"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div>Float-adjusted market cap</div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Cap"}'>Cap</td>
<td style="width: 465px;" data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='[null,3,"0.00%",1]'>20.00%</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Rebalancing cycle"}'>Rebalancing cycle</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"Annually"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>Annually</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Rebalancing month"}'><strong>Rebalancing month</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"September"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><strong>September</strong></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Announcement date"}'><strong>Announcement date</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"One week ahead of implementation"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div><strong>One week ahead of implementation</strong></div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Implementation date"}'><strong>Implementation date</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"The first trading day of the week following the last trading day for KOSPI 200 futures contracts"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div><strong>The first trading day of the week following the last trading day for KOSPI 200 futures contracts</strong></div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Next implementation date"}'><strong>Next implementation date</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"September 10, 2021"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div><strong>September 10, 2021</strong></div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Rebalancing trading"}'><strong>Rebalancing trading</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"At the close on September 9, 2021"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div><strong>At the close on September 9, 2021</strong></div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Screening base date"}'>Screening base date</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"The last trading day of the month preceding the date of regular rebalancing"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div>The last trading day of the month preceding the date of regular rebalancing</div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Screening period"}'>Screening period</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"The three months preceding the screening base date"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div>The three months preceding the screening base date</div></div></td>
</tr>
<tr><td colspan="2" style="width: 746px;" data-sheets-value='{"1":2,"2":"Source: KRX &amp; KODEX ETF"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=PDF!R[-1]C[0]">Source: KRX &amp; KODEX ETF</td></tr>
</tbody>
</table>

Myungshin Industries is running again. Myungshin Industrial is considered a Tesla-related stock because Tesla is a major customer. As Tesla recently announced surprise earnings, the stock price of Myungshin Industrial is also moving up.In the past five trading days alone, the share price has risen more than 8%. Its current market cap has exceeded 1.7 trillion won.So this stock appears to offer some opportunities from an index rebalancing trading perspective as well.The first thing to consider is the inclusion of the KOSPI 200. In the rebalancing of last June, the stock price did not meet the market cap threshold due to the share price being drifted sideways for several months. However, in this December's rebalancing, if the current share price uptrend continues, the possibility of inclusion seems quite high.However, we can find trading opportunities in the KRX Autos sector index rebalancing, which takes place ahead of the KOSPI 200 rebalancing in December.As for KRX Autos, KODEX currently manages an ETF that tracks it, and it has recently been showing good returns, resulting in a large inflow of funds. The AUM now amounts to ₩649.0B, which isn't bad for an index containing only 17 constituents.This is a float-adjusted market cap-weighted index with a 20% cap. Rebalancing takes place annually in September. The implementation date is the first trading day of the week following the last trading day for KOSPI 200 futures contracts. So, September 10 will be the implementation date for this year, meaning that we will see rebalancing trading at the close on September 9.





Index summary

Index name
KRX Autos


ETF
Samsung Kodex Autos ETF


Ticker
091180


AUM
₩649.0B


Price
₩23,305


SO
27,850,000


Number of constituents
17


Weight type
Float-adjusted market cap


Cap
20.00%


Rebalancing cycle
Annually


Rebalancing month
September


Announcement date
One week ahead of implementation


Implementation date
The first trading day of the week following the last trading day for KOSPI 200 futures contracts


Next implementation date
September 10, 2021


Rebalancing trading
At the close on September 9, 2021


Screening base date
The last trading day of the month preceding the date of regular rebalancing


Screening period
The three months preceding the screening base date

Source: KRX &amp; KODEX ETF



KRX Autos Rebalancing on September 9: Watch Myoungshin Industrial as a New Add

South Korea

Hankook & Company Co., Ltd. operates as a holding company. The Company operates batteries manufacturing, leasing, management consulting, tires production, and other businesses. Hankook provides services worldwide.

Price Gauge
52-week Range	0.00 - 0.00
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Hankook & Company (000240 KS)

Navigating the Potential of Hankook & Company's Revised Tender Offer

This post navigates the potential of a revised tender offer by MBK to Hankook & Company's shareholders, focusing on trading considerations.

Sanghyun Park

KRX Shorts: Top Changes Prior to Short Ban

We analyzed KRX short interest report for the past week and highlight short interest changes in Ecopro, Samsung Sdi Co, Sk Hynix, Jusung Engineeri,...

Ke Yan, CFA, FRM

Feb 2023: Tire Company Results Preview

Partnership content

Helixtap

KRX Autos (KODEX ETF) Rebalancing: Watch Iljin HySolus, Halla Holdings, & DTR Automotive

We are midway through the KRX Autos rebalancing screening period. The results at the last close are Iljin HySolus, Halla Holdings, & DTR Auto...

Sanghyun Park

KRX Autos Rebalancing on September 9: Watch Myoungshin Industrial as a New Add

Myungshin Industrial, which is almost certain to be included in the KRX Autos Sector Index rebalancing, will receive an index weight of 2.09%, and...

Sanghyun Park

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52-week Range

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