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 Hanwha Galleria tender offer has no cancellation risk but carries proration risk, keeping the spread at around 7%.</li>
<li>For Hanwha Galleria, most floating shares are held by retail investors, and the smaller float size compared to Hansol Logistics further reduces proration risk.</li>
<li>Even though the actual trading volume might be a concern, it’s still worth thinking about going for an aggressive strategy to take advantage of the spread, which is around 7%.</li>
</ul>


The Hanwha Galleria tender offer has no cancellation risk but carries proration risk, keeping the spread at around 7%.
For Hanwha Galleria, most floating shares are held by retail investors, and the smaller float size compared to Hansol Logistics further reduces proration risk.
Even though the actual trading volume might be a concern, it’s still worth thinking about going for an aggressive strategy to take advantage of the spread, which is around 7%.


Examining the Severity of Proration Risk in the Hanwha Galleria Tender Offer

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>After the Kim family-backed Hanwha Energy completed <a href="https://www.smartkarma.com/entities/hanwha-corporation" target="_blank" data-smartkarma-citation="entities:10619:1" rel="noopener">Hanwha Corporation</a>'s Partial Offer last month, <a href="https://www.smartkarma.com/entities/hanwha-galleria-corp" target="_blank" data-smartkarma-citation="entities:39998:1" rel="noopener">Hanwha Galleria (452260 KS)</a>'s VP Kim Dong-seon has now launched a Partial Offer for 17.5% in Galleria. </li>
<li>Preceding my comments on Hanwha are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


After the Kim family-backed Hanwha Energy completed Hanwha Corporation's Partial Offer last month, Hanwha Galleria (452260 KS)'s VP Kim Dong-seon has now launched a Partial Offer for 17.5% in Galleria. 
Preceding my comments on Hanwha are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: More Partial Offers In The Hanwha Group Complex

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

<ul>
<li>There is nothing in the main investments at JM that suggests the grind lower on ROE and net profit will suddenly reverse, rather it should continue</li>
<li>Astra International, Hong Kong Land, and DFI Retail are key to JM and there is little joy here, with HKL potentially having more valuation impairments</li>
<li>Quarterly figures from Astra, which are a window on the current interim for JM, are not positive, with the worst quarter in over one year</li>
</ul>


There is nothing in the main investments at JM that suggests the grind lower on ROE and net profit will suddenly reverse, rather it should continue
Astra International, Hong Kong Land, and DFI Retail are key to JM and there is little joy here, with HKL potentially having more valuation impairments
Quarterly figures from Astra, which are a window on the current interim for JM, are not positive, with the worst quarter in over one year


Jardine Matheson - The Slow Grind Lower Can Continue

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>One of the important factors of big changes at the Korean chaebols is the age factor of the chairman/honorary chairman of each of these conglomerates.</li>
<li>In this insight, we provide the shareholding ownerships and ages of the top 10 Korean conglomerates where age could become a major factor in impacting big changes that could occur.</li>
<li>Among the 10 conglomerates listed below, Hyundai Motor Group, Celltrion Group, and SK Group have shown greater willingness to improve their shareholder return policies.</li>
</ul>


One of the important factors of big changes at the Korean chaebols is the age factor of the chairman/honorary chairman of each of these conglomerates.
In this insight, we provide the shareholding ownerships and ages of the top 10 Korean conglomerates where age could become a major factor in impacting big changes that could occur.
Among the 10 conglomerates listed below, Hyundai Motor Group, Celltrion Group, and SK Group have shown greater willingness to improve their shareholder return policies.


Potential Big Changes at the Korean Chaebols - The Age Factor of Chairman/Honorary Chairman

<ul>
<li>Expect True Wind to walk away rather than raising their price further for <a href="https://www.smartkarma.com/entities/sun-corp" target="_blank" data-smartkarma-citation="entities:10803:1" rel="noopener">Sun Corp (6736 JP)</a>. They'd need to pay ¥5,500-5,800 to dislodge a large chunk. And they won't.</li>
<li>
<a href="https://www.smartkarma.com/entities/amorepacific-group" target="_blank" data-smartkarma-citation="entities:12179:1" rel="noopener">Amorepacific Group (002790 KS)</a> plumbs new discount lows as <a href="https://www.smartkarma.com/entities/amorepacific-corp" target="_blank" data-smartkarma-citation="entities:20854:1" rel="noopener">Amorepacific Corp (090430 KS) </a> gets a boost from Amazon Prime Day.</li>
<li>
<a href="https://www.smartkarma.com/entities/canon-marketing-japan-inc" target="_blank" data-smartkarma-citation="entities:3866:1" rel="noopener">Canon Marketing Japan (8060 JP)</a> is still significantly under-levered. That means the stock price will generically not be that volatile. That generally means one should buy dips and sell pops.</li>
</ul>


Expect True Wind to walk away rather than raising their price further for Sun Corp (6736 JP). They'd need to pay ¥5,500-5,800 to dislodge a large chunk. And they won't.

Amorepacific Group (002790 KS) plumbs new discount lows as Amorepacific Corp (090430 KS)  gets a boost from Amazon Prime Day.

Canon Marketing Japan (8060 JP) is still significantly under-levered. That means the stock price will generically not be that volatile. That generally means one should buy dips and sell pops.


Last Week in Event SPACE: Sun Corp, Amorepacific, Canon Marketing, Jeisys Medical

South Korea

Hanwha Corporation imports and exports petrochemicals, machinery, automotives, electronics, and steel.  The Company also produces explosives for the defense and construction industries.  In addition, Hanwha manufactures automotive airbag inflators and telecommunication equipment, such as wireless phones and provides financial services through its subsidiaries.

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Hanwha Corporation (000880 KS)

Examining the Severity of Proration Risk in the Hanwha Galleria Tender Offer

This post explores the proration risk in the Hanwha Galleria tender offer, where the spread remains attractively high at around 7%.

Sanghyun Park

StubWorld: More Partial Offers In The Hanwha Group Complex

Buy Hanwha Galleria at the current price of ₩1,507/share, as I type. Separately, Hanwha Corp is still trading cheap. Expect another Kim family-led...

David Blennerhassett

Jardine Matheson - The Slow Grind Lower Can Continue

Results just out for Jardine Matheson, with a loss of $40m compared with a profit $556m and underlying profit is down 33%, all comparatives are...

Daniel Tabbush

Potential Big Changes at the Korean Chaebols - The Age Factor of Chairman/Honorary Chairman

One of the important factors of big changes at the Korean chaebols is the age factor of the chairman/honorary chairman of each of these conglomerates.

Douglas Kim

Last Week in Event SPACE: Sun Corp, Amorepacific, Canon Marketing, Jeisys Medical

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

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