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.

Event-Driven

<ul>
<li>The local street hears KRX has bumped it up to 14.68%. With the 1% rounding applied, it becomes 15%.</li>
<li>It is extremely rare for a Fast Entry to come in with a float market cap of +₩10T. So, we will see significant weight adjustments for the other constituents.</li>
<li>As we move towards the implementation date, we can consider basket-shorting those high-impact names for LG Energy's long hedge.</li>
</ul>


The local street hears KRX has bumped it up to 14.68%. With the 1% rounding applied, it becomes 15%.
It is extremely rare for a Fast Entry to come in with a float market cap of +₩10T. So, we will see significant weight adjustments for the other constituents.
As we move towards the implementation date, we can consider basket-shorting those high-impact names for LG Energy's long hedge.


LG Energy's KOSPI 200 Float Is 15%: Weight Adjustment Trading for Other Constituents

<ul>
<li>For this March rebalancing, the screening base date is January 28, which is the last trading day of January. So, the 3-month rebalancing review period is now done.</li>
<li>Other than LG Energy (+₩146,2B), we should pay the most attention to AfreecaTV (+1.70x), Chunbo (+0.36x), Douzone Bizon (-4.82x), and SoulBrain (-0.99x).</li>
<li>In addition, large-cap stocks such as SKIET (+0.25x), Ecopro BM (+0.10x), LG Chem (-0.62x), and Posco Chemical (-0.30x) will likely draw much attention.</li>
</ul>


For this March rebalancing, the screening base date is January 28, which is the last trading day of January. So, the 3-month rebalancing review period is now done.
Other than LG Energy (+₩146,2B), we should pay the most attention to AfreecaTV (+1.70x), Chunbo (+0.36x), Douzone Bizon (-4.82x), and SoulBrain (-0.99x).
In addition, large-cap stocks such as SKIET (+0.25x), Ecopro BM (+0.10x), LG Chem (-0.62x), and Posco Chemical (-0.30x) will likely draw much attention.


KRX K-New Deal Index Screening Period Ended: Rebalancing Changes & Passive Impacts Update

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Voronoi (VOR KS) is getting ready to complete its IPO in Korea in March. The IPO offering base deal size is from $84 million to $109 million.</li>
<li>The company has developed a genotype-directed therapy that is effective for tumors caused by mutations in kinases, and has successfully conducted global technology transfers. </li>
<li>The total amount of accumulated milestones for three global technology exports of Voronoi is $1.79 billion (about 2.1 trillion won) which is very impressive.</li>
</ul>


Voronoi (VOR KS) is getting ready to complete its IPO in Korea in March. The IPO offering base deal size is from $84 million to $109 million.
The company has developed a genotype-directed therapy that is effective for tumors caused by mutations in kinases, and has successfully conducted global technology transfers. 
The total amount of accumulated milestones for three global technology exports of Voronoi is $1.79 billion (about 2.1 trillion won) which is very impressive.


Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yuhan-corp" target="_blank" data-smartkarma-citation="entities:10745:1" rel="noopener">Yuhan Corp (000100 KS)'s</a> R&amp;D investments have started contributing to revenue through outlicensing deals. The company signed five out-licensing deals totaling KRW 4 trillion over the past three years.</li>
<li>The company has launched one in-house developed oncology drug, lazertinib in Korea market this year. Other in-licensed marketed prescription drugs hold leadership positioning in their respective therapeutic areas.</li>
<li>Outlicesing partner Janssen is expected to file new drug application to the US FDA in 2022. Yuhan is entitled for double-digit royalty on commercialization of Lazertinib in global market.</li>
</ul>



Yuhan Corp (000100 KS)'s R&amp;D investments have started contributing to revenue through outlicensing deals. The company signed five out-licensing deals totaling KRW 4 trillion over the past three years.
The company has launched one in-house developed oncology drug, lazertinib in Korea market this year. Other in-licensed marketed prescription drugs hold leadership positioning in their respective therapeutic areas.
Outlicesing partner Janssen is expected to file new drug application to the US FDA in 2022. Yuhan is entitled for double-digit royalty on commercialization of Lazertinib in global market.


Yuhan Corp (000100 KS): R&D Endeavors Finally Began to Pay Back; Lazertinib to Drive Future Growth

<ul>
<li>
<a href="https://www.smartkarma.com/entities/crystalgenomics-inc" target="_blank" data-smartkarma-citation="entities:20260:1" rel="noopener">Crystalgenomics Inc (083790 KS)</a> has a couple of anti-cancer drugs in its clinical pipeline. The company has exclusive licensing deal for its anti-cancer candidate luxeptinib with Aptose Biosciences outside Korea.</li>
<li>Luxeptinib is being evaluated in a phase 1 a/b trial in patients with relapsed/refractory acute myeloid leukemia, higher risk myelodysplastic syndromes, and B-cell malignancies.</li>
<li>Aptose will present clinical trial result in a conference during December 11–14. This does not represent an upside opportunity for CrystalGenomics shares, which is now trading near its lows.</li>
</ul>



Crystalgenomics Inc (083790 KS) has a couple of anti-cancer drugs in its clinical pipeline. The company has exclusive licensing deal for its anti-cancer candidate luxeptinib with Aptose Biosciences outside Korea.
Luxeptinib is being evaluated in a phase 1 a/b trial in patients with relapsed/refractory acute myeloid leukemia, higher risk myelodysplastic syndromes, and B-cell malignancies.
Aptose will present clinical trial result in a conference during December 11–14. This does not represent an upside opportunity for CrystalGenomics shares, which is now trading near its lows.


CrystalGenomics (083790 KS): Partner’s Clinical Data Presentation Is Not a Buying Opportunity

South Korea

Hanmi Pharm. Company Ltd. produces pharmaceutical products, including antibiotics, vitamins, and intestinal tonics.  The Company also provides beverages and processes soft capsules for other pharmaceutical firms.

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Hanmi Pharm (128940 KS)

LG Energy's KOSPI 200 Float Is 15%: Weight Adjustment Trading for Other Constituents

KRX has bumped up LG Energy's float to 15%. As a result, we will see a more substantial passive impact on LG Energy. Also, we should see...

Sanghyun Park

KRX K-New Deal Index Screening Period Ended: Rebalancing Changes & Passive Impacts Update

The KRX K-New Deal Index's screening period ended last Friday. This post updates the screening results and passive impacts.

Sanghyun Park

Voronoi IPO Preview

Voronoi has developed a genotype-directed therapy that is effective for tumors caused by mutations in kinases, and has successfully conducted...

Douglas Kim

Yuhan Corp (000100 KS): R&D Endeavors Finally Began to Pay Back; Lazertinib to Drive Future Growth

R&D investment is generating highest-margin earning outlicensing revenue stream. In-house developed drug, lazertinib is the biggest growth engine...

Tina Banerjee

CrystalGenomics (083790 KS): Partner’s Clinical Data Presentation Is Not a Buying Opportunity

Partner's clinical trial data presentation at an upcoming conference does not represent upside potential for CrystalGenomics shares.

Tina Banerjee

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