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 13th. The aggregated short interest was USD14.5bn.</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 Samsung Electronics, HANWHA AEROSPACE, Samsung SDI, HANWHA SYSTEMS, Hyundai Motor.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Mar 13th. The aggregated short interest was USD14.5bn.
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 Samsung Electronics, HANWHA AEROSPACE, Samsung SDI, HANWHA SYSTEMS, Hyundai Motor.


KRX Short Interest Weekly (Mar 13th): Samsung Electronics, HANWHA AEROSPACE, Samsung SDI

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>CSG NV, <a href="https://www.smartkarma.com/entities/nlight-inc" target="_blank" data-smartkarma-citation="entities:27108:1" rel="noopener">nLight Inc</a>, Exosens SA and <a href="https://www.smartkarma.com/entities/droneshield-ltd" target="_blank" data-smartkarma-citation="entities:30509:1" rel="noopener">DroneShield</a> will be added to the MarketVector Global Defense Industry Index at the close on 20 March.</li>
<li>The 4 adds, float changes and capping changes will result in an estimated one-way turnover of 6.2% resulting in a round-trip trade of US$1.16bn.</li>
<li>The MarketVector Global Defense Industry Index has continued to trade higher, and ETF creations have continued over the last few months.</li>
</ul>


CSG NV, nLight Inc, Exosens SA and DroneShield will be added to the MarketVector Global Defense Industry Index at the close on 20 March.
The 4 adds, float changes and capping changes will result in an estimated one-way turnover of 6.2% resulting in a round-trip trade of US$1.16bn.
The MarketVector Global Defense Industry Index has continued to trade higher, and ETF creations have continued over the last few months.


MV Global Defense Industry Index Rebalance: 4 Adds; 6.2% Turnover; US$1.2bn Trade

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 11 March, Hanwha Corporation (000880 KS) announced that it plans to cancel 4.45 million treasury shares (5.9% of outstanding shares) on 9 April. </li>
<li>This share cancellation should have a positive impact on Hanwha Corp's share price by raising its EPS and ROE. It will also raise the overall ownerships of existing shareholders. </li>
<li>Our updated NAV valuation of Hanwha Corp is 253,573 won (96% higher than current price). The largest portion of Hanwha Corp's value is its 34% stake in Hanwha Aerospace. </li>
</ul>


On 11 March, Hanwha Corporation (000880 KS) announced that it plans to cancel 4.45 million treasury shares (5.9% of outstanding shares) on 9 April. 
This share cancellation should have a positive impact on Hanwha Corp's share price by raising its EPS and ROE. It will also raise the overall ownerships of existing shareholders. 
Our updated NAV valuation of Hanwha Corp is 253,573 won (96% higher than current price). The largest portion of Hanwha Corp's value is its 34% stake in Hanwha Aerospace. 


Hanwha Corp: Cancellation of 5.9% of Outstanding Shares & Updated NAV Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Mar 6th. The aggregated holding was USD1,186.0bn.</li>
<li>We estimate that foreign flows to be outflows of USD6,087mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Samsung Electronics, SK Hynix, Hyundai Motor, LIG Nex1, S-Oil.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Mar 6th. The aggregated holding was USD1,186.0bn.
We estimate that foreign flows to be outflows of USD6,087mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Samsung Electronics, SK Hynix, Hyundai Motor, LIG Nex1, S-Oil.


KRX Foreign Holding Weekly (Mar 6th): Samsung Electronics, SK Hynix, Hyundai Motor, LIG Nex1, S-Oil

<ul>
<li>Several local media outlets have mentioned that Poongsan Corp (103140 KS) (market cap of 3.1 trillion won) may be up for sale.</li>
<li>Major domestic defense companies including Hanwha Aerospace (012450 KS), LIG Nex1 Co (079550 KS), and Hyundai Rotem Company (064350 KS) are potential candidates to purchase Poongsan's defense business. </li>
<li>Our NAV analysis of Poongsan Holdings suggests implied NAV per share of 51,094 won, representing an 35.5% upside versus current price.</li>
</ul>


Several local media outlets have mentioned that Poongsan Corp (103140 KS) (market cap of 3.1 trillion won) may be up for sale.
Major domestic defense companies including Hanwha Aerospace (012450 KS), LIG Nex1 Co (079550 KS), and Hyundai Rotem Company (064350 KS) are potential candidates to purchase Poongsan's defense business. 
Our NAV analysis of Poongsan Holdings suggests implied NAV per share of 51,094 won, representing an 35.5% upside versus current price.


Poongsan Holdings NAV Analysis & A Potential Sale of Controlling Stake in Poongsan Corp?

South Korea

Hanwha Aerospace Co., Ltd. operates as an aircraft parts manufacturing company. The Company produces and sells aircraft gas turbine engine products, aircraft compressors, low pressure turbines, and other products. Hanwha Aerospace markets its products worldwide.

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Hanwha Aerospace (012450 KS)

KRX Short Interest Weekly (Mar 13th): Samsung Electronics, HANWHA AEROSPACE, Samsung SDI

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samsung Electronics, HANWHA AEROSPACE, Samsung...

Ke Yan, CFA, FRM

MV Global Defense Industry Index Rebalance: 4 Adds; 6.2% Turnover; US$1.2bn Trade

There are 4 adds for the index in March. Estimated one-way turnover is 6.2% resulting in a round-trip trade of US$1.16bn. The index is near its...

Brian Freitas

Hanwha Corp: Cancellation of 5.9% of Outstanding Shares & Updated NAV Analysis

On 11 March, Hanwha Corporation (000880 KS) announced that it plans to cancel 4.45 million treasury shares (5.9% of outstanding shares) on 9 April.

Douglas Kim

KRX Foreign Holding Weekly (Mar 6th): Samsung Electronics, SK Hynix, Hyundai Motor, LIG Nex1, S-Oil

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Samsung Electronics, SK Hynix, Hyundai Motor, LIG...

Ke Yan, CFA, FRM

Poongsan Holdings NAV Analysis & A Potential Sale of Controlling Stake in Poongsan Corp?

Several local media outlets have mentioned that Poongsan Corp (103140 KS) (market cap of 3.1 trillion won) may be up for sale.

Douglas Kim

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