Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>Korea Investment Management will be launching a new nuclear power related ETF called Kindex Nuclear Theme Deep Search ETF on 28 June. </li>
<li>NH-Amundi Asset Management will also be launching Hanaro Nuclear iSelect ETF on 28 June. Both ETFs are the first ones to focus on the nuclear power related stocks in Korea.</li>
<li>The launch of these ETFs should have a positive impact on the major nuclear power related stocks including Doosan Enerbility (034020 KS) and Kepco Plant Service &amp; Engineering (051600 KS).</li>
</ul>


Korea Investment Management will be launching a new nuclear power related ETF called Kindex Nuclear Theme Deep Search ETF on 28 June. 
NH-Amundi Asset Management will also be launching Hanaro Nuclear iSelect ETF on 28 June. Both ETFs are the first ones to focus on the nuclear power related stocks in Korea.
The launch of these ETFs should have a positive impact on the major nuclear power related stocks including Doosan Enerbility (034020 KS) and Kepco Plant Service &amp; Engineering (051600 KS).


Launch of Kindex Nuclear Theme Deep Search ETF & Hanaro Nuclear ISelect ETF in Korea

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.

Kepco Engineering & Construction / Event-Driven

Kepco Engineering & Construction (052690 KS)

<ul>
<li>Since KEPCO announced the sale of its stake in KEPCO E&amp;C, this will happen. But the question is when, and the market was betting that it would not happen immediately.</li>
<li>But these bets collapsed yesterday. It is because Choo Kyung-ho, Deputy Prime Minister of Economy, publicly made remarks yesterday that seemed to pressure KEPCO to make additional self-rescue efforts.</li>
<li>KEPCO may aim at the level of ₩60,000 by applying a 5-7% discount rate from the mid-₩60,000 price. With this price in mind, we need to time this block deal.</li>
</ul>


Since KEPCO announced the sale of its stake in KEPCO E&amp;C, this will happen. But the question is when, and the market was betting that it would not happen immediately.
But these bets collapsed yesterday. It is because Choo Kyung-ho, Deputy Prime Minister of Economy, publicly made remarks yesterday that seemed to pressure KEPCO to make additional self-rescue efforts.
KEPCO may aim at the level of ₩60,000 by applying a 5-7% discount rate from the mid-₩60,000 price. With this price in mind, we need to time this block deal.


Discussing How We Should Time the KEPCO E&C Block Deal

<ul>
<li>There has been increased speculation about a potential block deal sale of Kepco Engineering &amp; Construction (052690 KS), driving its share price lower in the past several days.</li>
<li>KEPCO owns a 65.77% stake in Kepco Engineering &amp; Construction (052690 KS). </li>
<li>We believe that there could be a further 10-20% downside risk for KEPCO E&amp;C in the coming weeks.</li>
</ul>


There has been increased speculation about a potential block deal sale of Kepco Engineering &amp; Construction (052690 KS), driving its share price lower in the past several days.
KEPCO owns a 65.77% stake in Kepco Engineering &amp; Construction (052690 KS). 
We believe that there could be a further 10-20% downside risk for KEPCO E&amp;C in the coming weeks.


Block Deal Sale of KEPCO Engineering & Construction Likely in 2H 2022

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

Electricity Generating / Equity Bottom-Up

<ul><li>We have a neutral view after EGCO's analyst meeting, with unexciting MW additions in the pipeline alongside the potential upside of the Quang Tl project.</li><li>Meanwhile, its operation and earnings remain resilient given that three-fourths of its revenue comes from IPPs, which are cushioned by the availability payment.</li><li>Despite the lackluster growth in 2020-21E, its earnings are of solid quality, with profit generation in the upper bound range at Bt1.9-2.0mn/MW during the period.</li></ul>

We have a neutral view after EGCO's analyst meeting, with unexciting MW additions in the pipeline alongside the potential upside of the Quang Tl project.Meanwhile, its operation and earnings remain resilient given that three-fourths of its revenue comes from IPPs, which are cushioned by the availability payment.Despite the lackluster growth in 2020-21E, its earnings are of solid quality, with profit generation in the upper bound range at Bt1.9-2.0mn/MW during the period.

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

After tinkering with changes to the short sell rules, the Financial Services Commission (FSC) finally imposed a ban on short selling in the KOSPI, KOSDAQ and KONEX markets for six months from 16 March to 15 September.The FSC has also eased the current limits on stock buybacks so companies can support their stock price.In this Insight, we look at the potential impact of the short selling rule change, and which stocks could be affected if local lenders are pressured to recall stocks that have been lent out.

After tinkering with changes to the short sell rules, the Financial Services Commission (FSC) finally imposed a ban on short selling in the KOSPI, KOSDAQ and KONEX markets for six months from 16 March to 15 September.The FSC has also eased the current limits on stock buybacks so companies can support their stock price.In this Insight, we look at the potential impact of the short selling rule change, and which stocks could be affected if local lenders are pressured to recall stocks that have been lent out.

South Korea

KEPCO Engineering & Construction Company, Inc. designs nuclear and conventionally-fueled electricity generating plants.  The Company also provides power plant engineering services and consulting services to power industry.

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Kepco Engineering & Construction (052690 KS)

Launch of Kindex Nuclear Theme Deep Search ETF & Hanaro Nuclear ISelect ETF in Korea

The launch of the new nuclear power related ETFs should have a positive impact on the major nuclear power related stocks including Doosan...

Douglas Kim

Discussing How We Should Time the KEPCO E&C Block Deal

This post gives the background story surrounding the KEPCO E&C block deal and discusses how we should time this stake sale event.

Sanghyun Park

Block Deal Sale of KEPCO Engineering & Construction Likely in 2H 2022

There has been increased speculation about a potential block deal sale of Kepco Engineering & Construction (052690 KS), driving its share price...

Douglas Kim

Unexciting Earnings But of Solid Quality

We have a neutral view after EGCO's analyst meeting, with unexciting MW additions in the pipeline alongside the potential upside of the Quang Tl...

Krungthai XSpring

The Short Sell Ban Is Here

After tinkering with changes to the short sell rules, the Financial Services Commission (FSC) finally imposed a ban on short selling in the KOSPI,...

Brian Freitas

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