Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>Hanon Systems announced that it has finalized a rights offering capital increase of 900 billion won. This capital raise will involve 347.5 million common shares (51.2% of outstanding shares)</li>
<li>The expected rights offering price is 2,590 won per share, which is 18.4% lower than current price of 3,175 won. </li>
<li>We remain Negative on Hanon Systems (018880 KS). There is a high probability that this rights offering deal will likely be a dilutive deal for the Hanon System shareholders.</li>
</ul>


Hanon Systems announced that it has finalized a rights offering capital increase of 900 billion won. This capital raise will involve 347.5 million common shares (51.2% of outstanding shares)
The expected rights offering price is 2,590 won per share, which is 18.4% lower than current price of 3,175 won. 
We remain Negative on Hanon Systems (018880 KS). There is a high probability that this rights offering deal will likely be a dilutive deal for the Hanon System shareholders.


Hanon Systems - A Rights Offering of 900 Billion Won

Event-Driven

<ul>
<li>On 14 August, Hanon Systems (018880 KS) announced a potential rights offering capital raise. The exact amount will be finalized at the EGM next month. </li>
<li>The significant size of the rights offering is expected to burden its largest shareholder Hankook Tire &amp; Technology (161390 KS) which owns a 54.8% stake in Hanon Systems. </li>
<li>We believe the potential rights offering is likely to continue to negatively impact Hanon Systems by diluting its existing shareholders. </li>
</ul>


On 14 August, Hanon Systems (018880 KS) announced a potential rights offering capital raise. The exact amount will be finalized at the EGM next month. 
The significant size of the rights offering is expected to burden its largest shareholder Hankook Tire &amp; Technology (161390 KS) which owns a 54.8% stake in Hanon Systems. 
We believe the potential rights offering is likely to continue to negatively impact Hanon Systems by diluting its existing shareholders. 


Hanon Systems Announces a Major Potential Rights Offering

Equity Bottom-Up

<ul>
<li>In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 17 February.</li>
<li>The top 10 stock picks (bi-weekly) include Hyundai G.F. Holding, Binggrae, Cheil Worldwide, Hana Tour, Samsung Electronics (pref), Samsung E&amp;A, Hyundai Elevator, KT Corp, Orion Corp, and Samsung Life Insurance. </li>
<li>We started to incorporate top negative catalysts along with positive catalysts in our top stock picks bi-weekly. Top negative catalyst is tariffs. We tried to exclude companies exposed to tariffs.</li>
</ul>


In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 17 February.
The top 10 stock picks (bi-weekly) include Hyundai G.F. Holding, Binggrae, Cheil Worldwide, Hana Tour, Samsung Electronics (pref), Samsung E&amp;A, Hyundai Elevator, KT Corp, Orion Corp, and Samsung Life Insurance. 
We started to incorporate top negative catalysts along with positive catalysts in our top stock picks bi-weekly. Top negative catalyst is tariffs. We tried to exclude companies exposed to tariffs.


Top 10 Korean Stock Picks Bi-Weekly (17 February 2025)

Samsung Fire & Marine Insurance / Equity Bottom-Up

Samsung Fire & Marine Insurance (000810 KS)

<ul>
<li>In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 3 February.</li>
<li>The top 10 stock picks include Orion Holdings, OCI Holdings, Hana Tour Service, Hyundai Motor, KT Corp, Samsung F&amp;M Insurance, Korean Air, Hankook T&amp;T, Young Poong, and NICE Info Service.</li>
<li><em><strong>Our top 10 Korean stock picks from 17 to 31 January are up on average 2.6%, outperforming KOSPI which is down 0.1% in the same period. </strong></em></li>
</ul>


In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 3 February.
The top 10 stock picks include Orion Holdings, OCI Holdings, Hana Tour Service, Hyundai Motor, KT Corp, Samsung F&amp;M Insurance, Korean Air, Hankook T&amp;T, Young Poong, and NICE Info Service.
Our top 10 Korean stock picks from 17 to 31 January are up on average 2.6%, outperforming KOSPI which is down 0.1% in the same period. 


Top 10 Korean Stock Picks Bi-Weekly (3 February 2025)

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.

<ul>
<li>Since Choi and his affiliates can’t buy shares directly, his only play is to recruit more white knights to boost his stake.</li>
<li>He needs at least 6% from the 23% free float, costing over ₩800 billion. This hefty price tag is why the stock hasn't moved much from the tender offer price.</li>
<li>The market isn’t ruling out Hyundai getting aggressive to secure Korea Zinc’s nickel, making this a hot trading point during the tender offer.</li>
</ul>


Since Choi and his affiliates can’t buy shares directly, his only play is to recruit more white knights to boost his stake.
He needs at least 6% from the 23% free float, costing over ₩800 billion. This hefty price tag is why the stock hasn't moved much from the tender offer price.
The market isn’t ruling out Hyundai getting aggressive to secure Korea Zinc’s nickel, making this a hot trading point during the tender offer.


Clearing up Legal Confusion on Counter Offers and Getting a Clear Read on the Korea Zinc Tender

South Korea

Hankook Tire & Technology Co. Ltd. develops and manufactures radial tires for passenger cars, light trucks, trucks, and buses.  The Company also produces batteries and aluminum alloy wheels and operates real estate business.

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Hankook Tire & Technology (161390 KS)

Hanon Systems - A Rights Offering of 900 Billion Won

Hanon Systems announced that it has finalized a rights offering capital increase of 900 billion won. This capital raise will involve 347.5 million...

Douglas Kim

Hanon Systems Announces a Major Potential Rights Offering

We believe the potential rights offering is likely to continue to negatively impact Hanon Systems by diluting its existing shareholders. The exact...

Douglas Kim

Top 10 Korean Stock Picks Bi-Weekly (17 February 2025)

The top 10 stock picks (bi-weekly) include Hyundai G.F. Holding, Binggrae, Cheil Worldwide, Hana Tour, Samsung Electronics (pref), Samsung E&A,...

Douglas Kim

Top 10 Korean Stock Picks Bi-Weekly (3 February 2025)

We provide the top 10 stocks picks in the Korean stock market for the two weeks starting 3 February. Our top 10 Korean stock picks from 17 to 31...

Douglas Kim

Clearing up Legal Confusion on Counter Offers and Getting a Clear Read on the Korea Zinc Tender

This post clarifies legal misunderstandings about counter offers in the Korea Zinc tender and a precise understanding of the current situation.

Sanghyun Park

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