Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>After the market close on 24 July, Hanwha Corporation (000880 KS) announced that Hanwha Energy secured an additional 5.2% stake in Hanwha Corp through a tender offer.</li>
<li>A total of 3.9 million shares have been applied for the tender offer as of 24 July (65% of targeted amount). </li>
<li>We believe that the Hanwha Group is likely to grab more shares in Hanwha Corp through an additional tender offer sometime in the next 6-12 months. </li>
</ul>


After the market close on 24 July, Hanwha Corporation (000880 KS) announced that Hanwha Energy secured an additional 5.2% stake in Hanwha Corp through a tender offer.
A total of 3.9 million shares have been applied for the tender offer as of 24 July (65% of targeted amount). 
We believe that the Hanwha Group is likely to grab more shares in Hanwha Corp through an additional tender offer sometime in the next 6-12 months. 


Hanwha Energy Acquires An Additional 5.2% of Hanwha Corp Through a Tender Offer

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/great-eastern-holdings-ltd" target="_blank" data-smartkarma-citation="entities:13993:1" rel="noopener">Great Eastern Holdings (GE SP)</a> IFA opines that the <a href="https://www.smartkarma.com/entities/oversea-chinese-banking-corp" target="_blank" data-smartkarma-citation="entities:114:1" rel="noopener">OCBC (OCBC SP)</a> S$25.60 offer is NOT fair but reasonable as it is below the valuation range of S$28.87-S$36.19 per share.</li>
<li>In response, OCBC declared the price final, and the final closing date is 12 July. Great Eastern will likely breach free float requirements and be suspended when the offer closes.</li>
<li>The offer will likely follow the Boustead Projects/Boustead Singapore blueprint, where SGX RegCo eventually (took seven months) enabled dissenters to receive a fair offer with a 24% uplift. </li>
</ul>



Great Eastern Holdings (GE SP) IFA opines that the OCBC (OCBC SP) S$25.60 offer is NOT fair but reasonable as it is below the valuation range of S$28.87-S$36.19 per share.
In response, OCBC declared the price final, and the final closing date is 12 July. Great Eastern will likely breach free float requirements and be suspended when the offer closes.
The offer will likely follow the Boustead Projects/Boustead Singapore blueprint, where SGX RegCo eventually (took seven months) enabled dissenters to receive a fair offer with a 24% uplift. 


Great Eastern Holdings (GE SP): Playbook as OCBC Offer Declared Final, IFA Opines NOT Fair

Cross Asset Strategy

<ul>
<li>Choi Sang-Mok (Deputy Prime Minister and Minister of Strategy and Finance) stated that the Korean government will announce specific plans to increase the value of low PBR stocks this month. </li>
<li>We provide a list of 97 stocks in KOSPI 200 that are trading below 1x P/B. They are trading at average P/B of 0.54x. </li>
<li>We expect these low P/B stocks to continue to outperform the market in the next several weeks leading up to the government's actual announcement.</li>
</ul>


Choi Sang-Mok (Deputy Prime Minister and Minister of Strategy and Finance) stated that the Korean government will announce specific plans to increase the value of low PBR stocks this month. 
We provide a list of 97 stocks in KOSPI 200 that are trading below 1x P/B. They are trading at average P/B of 0.54x. 
We expect these low P/B stocks to continue to outperform the market in the next several weeks leading up to the government's actual announcement.


Korean Government to Announce Specific Measures to Increase Value of Low PBR Stocks in February

Fintech & EM-focused Analyst, KT Capital Group

Alec Tseung

Fintech & EM-focused Analyst

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

<ul>
<li>PICC P&amp;C's Q3 underwriting profitability deteriorated due to typhoon/catastrophe-related losses in both motor and non-motor business.</li>
<li>Samsung Life's new business growth momentum continued in Q3'23; new business CSM margin slightly improved QoQ.</li>
<li>Prudential disclosed limited details in its Q3 results but we can see the growth trend of new business volume and profits continuing in the quarter.</li>
</ul>


PICC P&amp;C's Q3 underwriting profitability deteriorated due to typhoon/catastrophe-related losses in both motor and non-motor business.
Samsung Life's new business growth momentum continued in Q3'23; new business CSM margin slightly improved QoQ.
Prudential disclosed limited details in its Q3 results but we can see the growth trend of new business volume and profits continuing in the quarter.


APAC Insurers Series (#4): How We See the 3 Insurance Stocks in 2024

<ul>
<li>FSC Chairman Kim Joo-hyun mentioned that too many companies in Korea are trading below book value and the FSC plans to implement changes to improve upon this issue. </li>
<li>According to Korea Exchange, 1,111 companies out of total listed in KOSPI and KOSDAQ in Korea (2,538) are trading at below 1x book value (PBR) (liquidation value). </li>
<li>According to the Capital Group, about 39% of companies in the TOPIX trade below book value, compared to just 5% for companies in the S&amp;P 500 Index. </li>
</ul>


FSC Chairman Kim Joo-hyun mentioned that too many companies in Korea are trading below book value and the FSC plans to implement changes to improve upon this issue. 
According to Korea Exchange, 1,111 companies out of total listed in KOSPI and KOSDAQ in Korea (2,538) are trading at below 1x book value (PBR) (liquidation value). 
According to the Capital Group, about 39% of companies in the TOPIX trade below book value, compared to just 5% for companies in the S&amp;P 500 Index. 


44% of Korean Stocks Are Trading Below Book Value - FSC Wants to Improve This (Following Japan)

South Korea

Hanwha Life Insurance Co., Ltd. offers life insurance services and reinsurance services.  The Company also does insurance against loss business, beverages business, real estate rental, and securities investment business through its subsidiaries.

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Hanwha Life Insurance (088350 KS)

Hanwha Energy Acquires An Additional 5.2% of Hanwha Corp Through a Tender Offer

After the market close on 24 July, Hanwha Corporation (000880 KS) announced that Hanwha Energy secured an additional 5.2% stake in Hanwha Corp...

Douglas Kim

Great Eastern Holdings (GE SP): Playbook as OCBC Offer Declared Final, IFA Opines NOT Fair

Shares will likely breach float requirements and be suspended at offer close. While trading through terms, recent precedent suggests that investors...

Arun George

Korean Government to Announce Specific Measures to Increase Value of Low PBR Stocks in February

Korean government announced it will reveal Corporate Value Program details to reduce stock market valuation discount on 26 February. They include...

Douglas Kim

APAC Insurers Series (#4): How We See the 3 Insurance Stocks in 2024

While we see limited upside in both PICC P&C and Samsung Life, we believe Prudential is the only one out of the three insurance stocks we...

Alec Tseung

44% of Korean Stocks Are Trading Below Book Value - FSC Wants to Improve This (Following Japan)

A 44% of Korean stocks are trading below book value. FSC wants to improve this, following Japan's "name and shame" policy.

Douglas Kim

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