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>Three local indexes in Korea face rebalancing trading on March 10, supposedly at the close.</li>
<li>They are 1. KOSPI 200 Fast Entry for LG Energy Solution, 2. KOSPI Size Index Series biannual rebalancing, and 3. KRX BBIG K-New Deal biannual rebalancing.</li>
<li>There are 18 stocks in total, which have an estimated passive flow of ±0.5x ADTV &amp; an average daily trade value of +₩5.0B.</li>
</ul>


Three local indexes in Korea face rebalancing trading on March 10, supposedly at the close.
They are 1. KOSPI 200 Fast Entry for LG Energy Solution, 2. KOSPI Size Index Series biannual rebalancing, and 3. KRX BBIG K-New Deal biannual rebalancing.
There are 18 stocks in total, which have an estimated passive flow of ±0.5x ADTV &amp; an average daily trade value of +₩5.0B.


Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>In this insight, we discuss the potential additions and deletions in the upcoming June 2022 KOSPI200 rebalance.</li>
<li>These top 10potential inclusionsare down on average 4.4% YTD, outperforming KOSPI which is down 10.1% YTD.</li>
<li>These top 10 potential exclusions are down on average 12.3% YTD, underperforming KOSPI which is down 10.1% YTD.</li>
</ul>


In this insight, we discuss the potential additions and deletions in the upcoming June 2022 KOSPI200 rebalance.
These top 10potential inclusionsare down on average 4.4% YTD, outperforming KOSPI which is down 10.1% YTD.
These top 10 potential exclusions are down on average 12.3% YTD, underperforming KOSPI which is down 10.1% YTD.


Initial Thoughts on the KOSPI200 Rebalance in June 2022

Index Rebalance

<ul>
<li>KOSPI Size Index Series rebalances twice a year in March and September. The base date is February 28. It is a three-month review, so, from December 1 to February 28.</li>
<li>In the KOSPI size index rebalancing, an increase in the buying volume of local institutions for stocks moving from LargeCap to MidCap is generally detected. </li>
<li>14 new MidCap entrants are expected to have a sizable passive impact.</li>
</ul>


KOSPI Size Index Series rebalances twice a year in March and September. The base date is February 28. It is a three-month review, so, from December 1 to February 28.
In the KOSPI size index rebalancing, an increase in the buying volume of local institutions for stocks moving from LargeCap to MidCap is generally detected. 
14 new MidCap entrants are expected to have a sizable passive impact.


KOSPI Size Index Series Rebalancing Screening Results

<ul>
<li>The screening results based on the average market cap for the screening period until the last closing price have seven additions/deletions.</li>
<li>LG Energy will make Fast Entry. The one to make room for LG Energy should be Dongwon F&amp;B, an additional deletion to the seven deletions through the preliminary filtering.</li>
<li>F&amp;F Holdings may fail to meet the minimum float rate. If it doesn't make KOSPI 200 this time, Hyundai Marine &amp; Fire Insurance will get to stay in the Index.</li>
</ul>


The screening results based on the average market cap for the screening period until the last closing price have seven additions/deletions.
LG Energy will make Fast Entry. The one to make room for LG Energy should be Dongwon F&amp;B, an additional deletion to the seven deletions through the preliminary filtering.
F&amp;F Holdings may fail to meet the minimum float rate. If it doesn't make KOSPI 200 this time, Hyundai Marine &amp; Fire Insurance will get to stay in the Index.


KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

Equity Bottom-Up

<ul>
<li>After a terrible IPO book building results, K Car's shares have rallied nicely in the past several days. </li>
<li>The company generated sales of 1,400.6 billion won (up 42% YoY) and operating profit of 56.9 billion won (up 88.8% YoY) in 1Q-3Q 2021.</li>
<li>Our base to high case valuation of K Car is 38,809 won and 46,959 won, respectively, which represent 12% and 35% higher upside versus current price.</li>
</ul>


After a terrible IPO book building results, K Car's shares have rallied nicely in the past several days. 
The company generated sales of 1,400.6 billion won (up 42% YoY) and operating profit of 56.9 billion won (up 88.8% YoY) in 1Q-3Q 2021.
Our base to high case valuation of K Car is 38,809 won and 46,959 won, respectively, which represent 12% and 35% higher upside versus current price.


K Car's Share Price Roars Higher Driven by a Greater Demand for Online Purchase of Used Vehicles

South Korea

K Car Co., Ltd. retails used automobiles. The Company distributes sedans, commercial vehicles, light trucks, utility vehicles, used vehicles, and other related automobiles. K Car markets its products throughout South Korea.

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K Car (381970 KS)

Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10

This post estimates the combined rebalancing flows of Korea's three local indexes, which should be seen on March 10, supposedly at the close.

Sanghyun Park

Initial Thoughts on the KOSPI200 Rebalance in June 2022

We discuss the potential additions and deletions in the upcoming June 2022 KOSPI200 rebalance. Top 10 potential inclusions are down on average 4.4%...

Douglas Kim

KOSPI Size Index Series Rebalancing Screening Results

This post has the screening results of the KOSPI Size Index Series rebalancing: 14 new MidCap entrants are expected to have a sizable passive impact.

Sanghyun Park

KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

This post has the screening results of the KOSPI 200 rebalancing, with a focus on prediction likelihood, special considerations, and passive impacts.

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Combined Rebalancing Flow Estimations of Three Indexes in Korea on March 10

This post estimates the combined rebalancing flows of Korea's three local indexes, which should be seen on March 10, supposedly at the close.

Sanghyun Park

Initial Thoughts on the KOSPI200 Rebalance in June 2022

We discuss the potential additions and deletions in the upcoming June 2022 KOSPI200 rebalance. Top 10 potential inclusions are down on average 4.4%...

Douglas Kim

KOSPI Size Index Series Rebalancing Screening Results

This post has the screening results of the KOSPI Size Index Series rebalancing: 14 new MidCap entrants are expected to have a sizable passive impact.

Sanghyun Park

KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

This post has the screening results of the KOSPI 200 rebalancing, with a focus on prediction likelihood, special considerations, and passive impacts.

Sanghyun Park

K Car's Share Price Roars Higher Driven by a Greater Demand for Online Purchase of Used Vehicles

K Car's share price has roared back in the past couple of days after trading in a range post the IPO. A bullish Goldman Sachs report has been a key...

Douglas Kim