Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>It was reported today in numerous local media that there will be an inclusion of 'shareholder value improvement' management evaluation criteria for listed government enterprises.</li>
<li>Some of these listed government enterprises rallied strongly today (KEPCO - up 10%; KOGAS - up 12.7%; Korea District Heating - Up 30%). </li>
<li>The detailed evaluation criteria for management evaluation of government enterprises will include the appropriateness of dividend levels, protection of minority shareholders, and compliance with best practices for ESG improvement.</li>
</ul>


It was reported today in numerous local media that there will be an inclusion of 'shareholder value improvement' management evaluation criteria for listed government enterprises.
Some of these listed government enterprises rallied strongly today (KEPCO - up 10%; KOGAS - up 12.7%; Korea District Heating - Up 30%). 
The detailed evaluation criteria for management evaluation of government enterprises will include the appropriateness of dividend levels, protection of minority shareholders, and compliance with best practices for ESG improvement.


Inclusion of 'Shareholder Value Improvement' Mgmt Evaluation Reforms for Listed Govt Enterprises

New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>SkyCity (SKC) is reporting its FY26 result on Thursday, 20 August 2026.</li><li>The two key areas we will focus on are: (1) the signalling of a potential return to dividends during FY27 following recently announced asset sales; and (2) FY27 earnings guidance given the softer run rate through the final quarter of FY26.</li><li>Other areas of interest include: an update on the online gaming opportunity; progress on Adelaide’s business improvement programme and the introduction of carded gaming in CY27; FY27 capex guidance; and an operational update on Auckland as NZICC ramps towards full run rates and the City Rail Link is due to open in September 2026.</li></ul>

SkyCity (SKC) is reporting its FY26 result on Thursday, 20 August 2026.The two key areas we will focus on are: (1) the signalling of a potential return to dividends during FY27 following recently announced asset sales; and (2) FY27 earnings guidance given the softer run rate through the final quarter of FY26.Other areas of interest include: an update on the online gaming opportunity; progress on Adelaide’s business improvement programme and the introduction of carded gaming in CY27; FY27 capex guidance; and an operational update on Auckland as NZICC ramps towards full run rates and the City Rail Link is due to open in September 2026.

Thematic (Sector/Industry)

<ul>
<li>There are three major reasons why we believe Korean casinos are likely to continue to outperform the market this year.</li>
<li>Three main reasons include hedge against rising inflation, Korea and other major countries are opening up for travel, and continued decline in gambling revenues in Macau.</li>
<li>Finally, among the four major Korean casino stocks, we have Positive views on GKL, Paradise, and Kangwon Land. We have Negative view on Lotte Tour Development due to valuation.</li>
</ul>


There are three major reasons why we believe Korean casinos are likely to continue to outperform the market this year.
Three main reasons include hedge against rising inflation, Korea and other major countries are opening up for travel, and continued decline in gambling revenues in Macau.
Finally, among the four major Korean casino stocks, we have Positive views on GKL, Paradise, and Kangwon Land. We have Negative view on Lotte Tour Development due to valuation.


Three Major Reasons Why Korean Casinos Are Likely to Outperform the Market This Year

<ul><li>After waiting 18 months for SkyCity (SKC) to announce the first sale in its asset monetisation strategy, it took only five days to get the second update.</li><li>SKC announced that it has entered into a non-binding heads of agreement for the sale of the Grand hotel, though the financial terms of the transaction remain confidential.</li><li>This announcement, in addition to the asset sale announced last week, should result in SKC: (1) exceeding its NZ$200m asset monetisation target; (2) reducing pro-forma gearing below 2x EBITDA, which should remove S&amp;P’s negative watch on its credit rating; and (3) being in a position to return to dividends in FY27.</li></ul>

After waiting 18 months for SkyCity (SKC) to announce the first sale in its asset monetisation strategy, it took only five days to get the second update.SKC announced that it has entered into a non-binding heads of agreement for the sale of the Grand hotel, though the financial terms of the transaction remain confidential.This announcement, in addition to the asset sale announced last week, should result in SKC: (1) exceeding its NZ$200m asset monetisation target; (2) reducing pro-forma gearing below 2x EBITDA, which should remove S&amp;P’s negative watch on its credit rating; and (3) being in a position to return to dividends in FY27.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

TSMC (Taiwan Semiconductor Manufacturing) / Technical Analysis

TSMC (Taiwan Semiconductor Manufacturing) (2330 TT)

TSMC (Taiwan Semiconductor Manufacturing)

<p>Emerging market equities have been one of the worst areas to invest in 2021, but we see early signs of positive change. With the US dollar failing to break above resistance at $93.50 and the MSCI EM ETF (EEM-US) displaying a false breakdown at $52, we believe now is an opportune time to add exposure to emerging market equities. To be clear, we are not getting overly bullish on EM; we have favored developed int’l (EAFE) over EM since May, and we are now shifting back to a neutral stance between the two. We see reason to believe the tide is shifting in EM’s favor. Below we highlight attractive and actionable themes within EM.</p>

Emerging market equities have been one of the worst areas to invest in 2021, but we see early signs of positive change. With the US dollar failing to break above resistance at $93.50 and the MSCI EM ETF (EEM-US) displaying a false breakdown at $52, we believe now is an opportune time to add exposure to emerging market equities. To be clear, we are not getting overly bullish on EM; we have favored developed int’l (EAFE) over EM since May, and we are now shifting back to a neutral stance between the two. We see reason to believe the tide is shifting in EM’s favor. Below we highlight attractive and actionable themes within EM.

Shifting Exposure To Emerging Markets; Buying TSMC/Taiwan Semi, ICICI Bank, Many Others

South Korea

Kangwon Land Inc. is a casino and hotel services provider located in the Kangwon province area of South Korea.  The Company develops abandoned mines and builds gaming and entertainment facilities.  Kangwon Land operates a number of game tables and slot machines for domestic and international customers under its gaming licenses.

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Kangwon Land (035250 KS)

Inclusion of 'Shareholder Value Improvement' Mgmt Evaluation Reforms for Listed Govt Enterprises

It was reported today in numerous local media that there will be an inclusion of 'shareholder value improvement' management evaluation criteria for...

Douglas Kim

SkyCity FY26 Preview—Counting Cards

SkyCity (SKC) is reporting its FY26 result on Thursday, 20 August 2026. The two key areas we will focus on are: (1) the signalling of a potential...

Forsyth Barr

Three Major Reasons Why Korean Casinos Are Likely to Outperform the Market This Year

We discuss three main reasons why we believe Korean casinos are likely to continue to outperform the market this year including a hedge against...

Douglas Kim

SkyCity Bang, Bang

After waiting 18 months for SkyCity (SKC) to announce the first sale in its asset monetisation strategy, it took only five days to get the second...

Forsyth Barr

Shifting Exposure To Emerging Markets; Buying TSMC/Taiwan Semi, ICICI Bank, Many Others

We see early signs of positive change within EM, and we present a strong case as to why we believe now is an opportune time to add exposure.

Vermilion Research

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