Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Private Capital Markets

Kakao Entertainment  / Private Capital Markets

<ul>
<li>Kakao Entertainment is one of the biggest entertainment companies in Korea. The company has a strong IP for webtoons, web novels, music, drama, movies, and other digital contents.</li>
<li>Kakao Entertainment is a company that was formed from a merger of Kakao Page and Kakao M in March 2021. </li>
<li>Kakao Corp (035720 KS) is the largest shareholder of Kakao Entertainment, followed by Anchor Equity Partners, and Tencent.</li>
</ul>


Kakao Entertainment is one of the biggest entertainment companies in Korea. The company has a strong IP for webtoons, web novels, music, drama, movies, and other digital contents.
Kakao Entertainment is a company that was formed from a merger of Kakao Page and Kakao M in March 2021. 
Kakao Corp (035720 KS) is the largest shareholder of Kakao Entertainment, followed by Anchor Equity Partners, and Tencent.


Kakao Entertainment: A Korean Entertainment Powerhouse

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

Mirae Asset TIGER Secondary Cell ETF / Event-Driven

<ul>
<li>In general, the projection hit rate for the top market cap constituents was sufficiently high. And the correlation between their stock price direction and passive flow was also high.</li>
<li>However, the projection hit rate for the constituents with a small market cap was relatively low.</li>
<li>If we traded the proposed tradable names with an equal-weighted Long/Short basket, we would have achieved a return of 1.76%. Even excluding Hanjin Kal, we would have achieved 1.31%.</li>
</ul>


In general, the projection hit rate for the top market cap constituents was sufficiently high. And the correlation between their stock price direction and passive flow was also high.
However, the projection hit rate for the constituents with a small market cap was relatively low.
If we traded the proposed tradable names with an equal-weighted Long/Short basket, we would have achieved a return of 1.76%. Even excluding Hanjin Kal, we would have achieved 1.31%.


Recap on WISE Theme Indexes (TIGER ETFs) Rebalancing Trading on April 14

Thematic (Sector/Industry)

<ul>
<li>Starting Monday, 18 April, South Korea will lift almost all social distancing measures after nearly two years.</li>
<li>Under the new measures, the previous restrictions including midnight business hour curfew for restaurants, cafes, and other businesses will be completely lifted. </li>
<li>The pandemic to endemic reopening plays in Korea (19 stocks) are up on average 7% YTD, significantly outperforming KOSPI which is down 9.5% in the same period.</li>
</ul>


Starting Monday, 18 April, South Korea will lift almost all social distancing measures after nearly two years.
Under the new measures, the previous restrictions including midnight business hour curfew for restaurants, cafes, and other businesses will be completely lifted. 
The pandemic to endemic reopening plays in Korea (19 stocks) are up on average 7% YTD, significantly outperforming KOSPI which is down 9.5% in the same period.


End of Nearly All Social Distancing Measures in Korea & How My Views of Mask Wearing Has Changed

<ul>
<li>Three WISE theme indexes undergo quarterly rebalancing today at the close.</li>
<li>The flow projections shown below in the DETAIL are based on the closing prices of April 12.</li>
<li>We have 13 Long/Short tradable names based on these flow projections: an ADTV of at least ₩10B &amp; a passive flow impact of 0.10x ADTV or more</li>
</ul>


Three WISE theme indexes undergo quarterly rebalancing today at the close.
The flow projections shown below in the DETAIL are based on the closing prices of April 12.
We have 13 Long/Short tradable names based on these flow projections: an ADTV of at least ₩10B &amp; a passive flow impact of 0.10x ADTV or more


WISE Theme Indexes Rebalancing Today: Flow Projections as of Close on April 12

Mirae Asset Tiger Media Contents ETF / Event-Driven

<ul>
<li>Next Thursday, the rebalancing trading of the WISE Secondary Cell Index will occur. The current AUM is ₩0.15T, and the AUM has increased a bit in the last two weeks.</li>
<li>Four names (2 Longs &amp; 2 Shorts) are screened as follows: <strong>CJ ENM, Dear U, JYP Entertainment, &amp; Jcontentree Corp</strong>.</li>
<li>We should consider putting only JYP Ent in the Short basket. On the other hand, it seems okay to put CJ ENM and Dear U together in the Long basket.</li>
</ul>


Next Thursday, the rebalancing trading of the WISE Secondary Cell Index will occur. The current AUM is ₩0.15T, and the AUM has increased a bit in the last two weeks.
Four names (2 Longs &amp; 2 Shorts) are screened as follows: CJ ENM, Dear U, JYP Entertainment, &amp; Jcontentree Corp.
We should consider putting only JYP Ent in the Short basket. On the other hand, it seems okay to put CJ ENM and Dear U together in the Long basket.


WISE Media Contents Rebalancing (TIGER ETF): Long/Short Tradable Names

South Korea

JYP Entertainment Corp plans, produces, promotes, and markets Korean singers both in Korean and overseas market. The Company's also engages in licensing, merchandizing, and artist management business including the commercial flim contracts of the artists.

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Jyp Entertainment (035900 KS)

Kakao Entertainment: A Korean Entertainment Powerhouse

Kakao Entertainment is one of the biggest entertainment companies in Korea. The company has a strong IP for webtoons, web novels, music, drama,...

Douglas Kim

Recap on WISE Theme Indexes (TIGER ETFs) Rebalancing Trading on April 14

This post is a recap of our flow trading on the WISE Theme Indexes (TIGER ETFs) rebalancing, which was carried out on April 14.

Sanghyun Park

WISE Theme Indexes Rebalancing Today: Flow Projections as of Close on April 12

Three WISE Theme Indexes undergo quarterly rebalancing today at the close. This post screens 13 tradable names for a Long/Short basket day trading.

Sanghyun Park

WISE Media Contents Rebalancing (TIGER ETF): Long/Short Tradable Names

This post recommends Long/Short tradable names for the rebalancing trading event of the WISE Media Contents Index (TIGER ETF) next Thursday.

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Kakao Entertainment: A Korean Entertainment Powerhouse

Kakao Entertainment is one of the biggest entertainment companies in Korea. The company has a strong IP for webtoons, web novels, music, drama,...

Douglas Kim

Recap on WISE Theme Indexes (TIGER ETFs) Rebalancing Trading on April 14

This post is a recap of our flow trading on the WISE Theme Indexes (TIGER ETFs) rebalancing, which was carried out on April 14.

Sanghyun Park

End of Nearly All Social Distancing Measures in Korea & How My Views of Mask Wearing Has Changed

Starting Monday, 18 April, South Korea will lift almost all social distancing measures after nearly two years. The pandemic to endemic reopening...

Douglas Kim

WISE Theme Indexes Rebalancing Today: Flow Projections as of Close on April 12

Three WISE Theme Indexes undergo quarterly rebalancing today at the close. This post screens 13 tradable names for a Long/Short basket day trading.

Sanghyun Park

WISE Media Contents Rebalancing (TIGER ETF): Long/Short Tradable Names

This post recommends Long/Short tradable names for the rebalancing trading event of the WISE Media Contents Index (TIGER ETF) next Thursday.

Sanghyun Park