Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>This morning's HPSP (403870 KS) situation began with Maekyung's report, indicating Crescendo PE contacted local bankers for the controlling stake sale.</li>
<li>The surge in HPSP's stock price after Maekyung's report suggests Crescendo PE's tacit approval, implying their involvement in the news's emergence.</li>
<li>Despite the likely confirmed sale of Crescendo PE's stake, timing remains uncertain due to disclosure rules. Continued monitoring is vital, considering potential market reactions later.</li>
</ul>


This morning's HPSP (403870 KS) situation began with Maekyung's report, indicating Crescendo PE contacted local bankers for the controlling stake sale.
The surge in HPSP's stock price after Maekyung's report suggests Crescendo PE's tacit approval, implying their involvement in the news's emergence.
Despite the likely confirmed sale of Crescendo PE's stake, timing remains uncertain due to disclosure rules. Continued monitoring is vital, considering potential market reactions later.


Market Chats About What Really Went Down with HPSP This Morning

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>HPSP is getting ready for an IPO in Korea in July. This semiconductor equipment Korean company is an IPO with the best fundamentals for a so far in 2022.</li>
<li>The IPO base deal size is from $55 million to $60 million. Crescendo Equity Partners (backed by Peter Thiel) is the controlling shareholder of HPSP.</li>
<li>HPSP had revenue of 91.8 billion won (up 50% YoY) and operating profit of 45.2 billion won (up 82.3% YoY) in 2021. Its sales and profits surged higher in 1Q22.</li>
</ul>


HPSP is getting ready for an IPO in Korea in July. This semiconductor equipment Korean company is an IPO with the best fundamentals for a so far in 2022.
The IPO base deal size is from $55 million to $60 million. Crescendo Equity Partners (backed by Peter Thiel) is the controlling shareholder of HPSP.
HPSP had revenue of 91.8 billion won (up 50% YoY) and operating profit of 45.2 billion won (up 82.3% YoY) in 2021. Its sales and profits surged higher in 1Q22.


HPSP Preview: A Korean IPO With Best Fundamentals So Far in 2022

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX Stocks as of May 10th which has an aggregated holding worth USD540.4bn.</li>
<li>We estimate that foreign flows to be inflows of USD1,299mln. 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 foreign changes in Samsung Electronics (005930 KS), Kb Financial (105560 KS).</li>
</ul>


We analyzed the changes in foreign holdings of KRX Stocks as of May 10th which has an aggregated holding worth USD540.4bn.
We estimate that foreign flows to be inflows of USD1,299mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight foreign changes in Samsung Electronics (005930 KS), Kb Financial (105560 KS).


KRX Foreign Holding Weekly (May 10th): Samsung Electronics, Kb Financial

<ul>
<li>We analyzed the changes in foreign holdings of KRX Stocks as of Apr 19th which has an aggregated holding worth USD508.9bn.</li>
<li>We estimate that foreign flows to be inflows of USD85mln. 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 foreign changes in Samsung Electronics, Sk Hynix, Kia.</li>
</ul>


We analyzed the changes in foreign holdings of KRX Stocks as of Apr 19th which has an aggregated holding worth USD508.9bn.
We estimate that foreign flows to be inflows of USD85mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight foreign changes in Samsung Electronics, Sk Hynix, Kia.


KRX Foreign Holding Weekly (Apr 19th): Samsung Electronics, Sk Hynix, Kia

<ul>
<li>Will there be changes in April's rebalancing? With two weeks left, two names are likely. Wonik IPS may be replaced by ISC Co Ltd, given a ₩150B market cap difference.</li>
<li>In the previous rebalancing, constituent changes had a notable price impact. Despite a passive flow impact of +1.0x ADTV, HPSP and EO Technics saw about a 15% 3-day return.</li>
<li>Wonik IPS is estimated to receive -4.0x ADTV, while ISC is expected to receive +1.0x ADTV. This is also quite similar to the previous rebalancing.</li>
</ul>


Will there be changes in April's rebalancing? With two weeks left, two names are likely. Wonik IPS may be replaced by ISC Co Ltd, given a ₩150B market cap difference.
In the previous rebalancing, constituent changes had a notable price impact. Despite a passive flow impact of +1.0x ADTV, HPSP and EO Technics saw about a 15% 3-day return.
Wonik IPS is estimated to receive -4.0x ADTV, while ISC is expected to receive +1.0x ADTV. This is also quite similar to the previous rebalancing.


Sector ETF Rebalancing with Remarkable Price Impact History: ISC In, Wonik IPS Out

South Korea

HPSP Co., Ltd operates as a manufacturing company. The Company manufactures semiconductor devices, systems and others. HPSP also provides related solution services.

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HPSP (403870 KS)

Market Chats About What Really Went Down with HPSP This Morning

Maekyung's report on HPSP (403870 KS) still signals Crescendo PE's potential stake sale despite the company's outright denial, with timing...

Sanghyun Park

HPSP Preview: A Korean IPO With Best Fundamentals So Far in 2022

The local media mentioned today that Crescendo Equity Partners is planning to sell its 39.59% controlling stake in HPSP (403870 KS), whose market...

Douglas Kim

KRX Foreign Holding Weekly (May 10th): Samsung Electronics, Kb Financial

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Samsung Electronics, Kb Financial.

Ke Yan, CFA, FRM

KRX Foreign Holding Weekly (Apr 19th): Samsung Electronics, Sk Hynix, Kia

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Samsung Electronics, Sk Hynix, Kia.

Ke Yan, CFA, FRM

Sector ETF Rebalancing with Remarkable Price Impact History: ISC In, Wonik IPS Out

ISC (095340) is still likely to be included, while Wonik IPS (240810) is expected to be excluded. The substantial market cap gap indicates an...

Sanghyun Park

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Market Chats About What Really Went Down with HPSP This Morning

​Maekyung's report on HPSP (403870 KS) still signals Crescendo PE's potential stake sale despite the company's outright denial, with timing...

Sanghyun Park

HPSP Preview: A Korean IPO With Best Fundamentals So Far in 2022

The local media mentioned today that Crescendo Equity Partners is planning to sell its 39.59% controlling stake in HPSP (403870 KS), whose market...

Douglas Kim

KRX Foreign Holding Weekly (May 10th): Samsung Electronics, Kb Financial

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Samsung Electronics, Kb Financial.

Ke Yan, CFA, FRM

KRX Foreign Holding Weekly (Apr 19th): Samsung Electronics, Sk Hynix, Kia

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Samsung Electronics, Sk Hynix, Kia.

Ke Yan, CFA, FRM

Sector ETF Rebalancing with Remarkable Price Impact History: ISC In, Wonik IPS Out

ISC (095340) is still likely to be included, while Wonik IPS (240810) is expected to be excluded. The substantial market cap gap indicates an...

Sanghyun Park

Maekyung's report on HPSP (403870 KS) still signals Crescendo PE's potential stake sale despite the company's outright denial, with timing...