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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.</p><p>The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.</p><p>All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.</p><div><p><a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> replaces <a href="https://www.smartkarma.com/entities/pearl-abyss-corp" target="_blank" data-smartkarma-citation="entities:24391:1" rel="noopener">Pearl Abyss (263750 KS)</a> in the BBIG Index.</p></div><div><p>In the Secondary Battery index, <a href="https://www.smartkarma.com/entities/soulbrain-co-ltd" target="_blank" data-smartkarma-citation="entities:16883:1" rel="noopener">Soulbrain (036830 KS)</a> and <a href="https://www.smartkarma.com/entities/l-f-co-ltd" target="_blank" data-smartkarma-citation="entities:14300:1" rel="noopener">L&amp;F Co Ltd (066970 KS)</a> replace <a href="https://www.smartkarma.com/entities/doosan-solus-co-ltd" target="_blank" data-smartkarma-citation="entities:28947:1" rel="noopener">Doosan Solus Co Ltd (336370 KS)</a> and <a href="https://www.smartkarma.com/entities/foosung-co-ltd" target="_blank" data-smartkarma-citation="entities:16811:1" rel="noopener">Foosung Co Ltd (093370 KS)</a>.</p></div><div><p>In the Biotech index, <a href="https://www.smartkarma.com/entities/shinpoong-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7296:1" rel="noopener">Shinpoong Pharmaceutical (019170 KS)</a> and <a href="https://www.smartkarma.com/entities/green-cross-corp" target="_blank" data-smartkarma-citation="entities:2969:1" rel="noopener">Green Cross (006280 KS)</a> replace <a href="https://www.smartkarma.com/entities/alteogen-inc" target="_blank" data-smartkarma-citation="entities:15886:1" rel="noopener">Alteogen Inc (196170 KS)</a> and <a href="https://www.smartkarma.com/entities/hanmi-pharm-co-ltd" target="_blank" data-smartkarma-citation="entities:12476:1" rel="noopener">Hanmi Pharm (128940 KS)</a>.</p></div><div><p>In the Internet index, <a href="https://www.smartkarma.com/entities/ace-technologies-corp" target="_blank" data-smartkarma-citation="entities:7868:1" rel="noopener">Ace Technologies (088800 KS)</a> and <a href="https://www.smartkarma.com/entities/rsupport-co-ltd" target="_blank" data-smartkarma-citation="entities:14783:1" rel="noopener">Rsupport Co Ltd (131370 KS)</a> replace <a href="https://www.smartkarma.com/entities/kg-inicis-co-ltd" target="_blank" data-smartkarma-citation="entities:5234:1" rel="noopener">KG Inicis Co Ltd (035600 KS)</a> and <a href="https://www.smartkarma.com/entities/ubiquoss-inc" target="_blank" data-smartkarma-citation="entities:14341:1" rel="noopener">Ubiquoss Holding (078070 KS)</a>.</p></div><div><p>In the Gaming index, <a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> and <a href="https://www.smartkarma.com/entities/neptune-company" target="_blank" data-smartkarma-citation="entities:28826:1" rel="noopener">Neptune Company (217270 KS)</a> replace <a href="https://www.smartkarma.com/entities/neowiz-games-corp" target="_blank" data-smartkarma-citation="entities:12425:1" rel="noopener">Neowiz Games (095660 KS)</a> and Golfzon (215000 KS).</p></div>

The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.Kakao Games Corp (293490 KS) replaces Pearl Abyss (263750 KS) in the BBIG Index.In the Secondary Battery index, Soulbrain (036830 KS) and L&amp;F Co Ltd (066970 KS) replace Doosan Solus Co Ltd (336370 KS) and Foosung Co Ltd (093370 KS).In the Biotech index, Shinpoong Pharmaceutical (019170 KS) and Green Cross (006280 KS) replace Alteogen Inc (196170 KS) and Hanmi Pharm (128940 KS).In the Internet index, Ace Technologies (088800 KS) and Rsupport Co Ltd (131370 KS) replace KG Inicis Co Ltd (035600 KS) and Ubiquoss Holding (078070 KS).In the Gaming index, Kakao Games Corp (293490 KS) and Neptune Company (217270 KS) replace Neowiz Games (095660 KS) and Golfzon (215000 KS).

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<p>Many investors worried about a few things on <a href="https://www.smartkarma.com/entities/my-eg-services-bhd" target="_blank" data-smartkarma-citation="entities:19765:1" rel="noopener">My E.G. Services (MYEG MK)</a> including ties with the previous administration that will potentially cause loss of concession (corporate governance), and whether earnings stability is sustainable. </p>
<p>The company's valuation is still undervalued compared to its peers when the management has taken a dynamic and active approach to launch new initiatives such as online groceries and health screening services for COVID-19. </p>
<p>Investors should book some profit on the recent share price strengthening but I will suggest <strong>selling </strong><strong>a part or 50%</strong> of the current position as the company and management offers an excellent long-term prospect across the market cycle and when the hype is done and stock will weaken a little, take that opportunity for a better entry point. </p>
<p><em>This insight is labeled as bearish to reflect the action that investors should take given the share price increase. The insight provider is still bullish on the long-term's company's prospect.</em></p>

Many investors worried about a few things on My E.G. Services (MYEG MK) including ties with the previous administration that will potentially cause loss of concession (corporate governance), and whether earnings stability is sustainable. 
The company's valuation is still undervalued compared to its peers when the management has taken a dynamic and active approach to launch new initiatives such as online groceries and health screening services for COVID-19. 
Investors should book some profit on the recent share price strengthening but I will suggest selling a part or 50% of the current position as the company and management offers an excellent long-term prospect across the market cycle and when the hype is done and stock will weaken a little, take that opportunity for a better entry point. 
This insight is labeled as bearish to reflect the action that investors should take given the share price increase. The insight provider is still bullish on the long-term's company's prospect.

MYEG: Vaccine and Concession - Worries Unfounded

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<p><strong><a href="https://www.smartkarma.com/entities/satrec-initiative-co-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:11367:1">Satrec Initiative (099320 KS)</a> is the 5th company in our Korea Small Cap Gems series. Satrec Initiative has a market cap of 198 billion won. Satrec Initiative is one of the best small cap companies with specialized technologies in the space satellite systems in Korea.</strong></p><p>Satrec Initiative is one of the few satellite system development companies that has been able to export products to other countries such as the UAE, Malaysia, and Singapore. Satrec Iniative is planning to IPO two of its subsidiaries, including SIIS (SI Imaging Services) and SIA (SI Analytics). Satrec is in the midst of selecting the main underwriters to lead these IPOs. Satrec Initiative owns 62.5% of SIIS  and 89.2% of SIA.</p><div class="content-highlight"><p><strong>A key investment thesis on Satrec Initiative is the fact that this company has one of the best technologies for developing and producing satellite systems and related components in Korea. Valuations are not too demanding and they are currently trading at relatively lower end of the historical valuation multiples. We are including <a href="https://www.smartkarma.com/entities/satrec-initiative-co-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:11367:1">Satrec Initiative (099320 KS)</a> in our model portfolio.</strong></p></div>

Satrec Initiative (099320 KS) is the 5th company in our Korea Small Cap Gems series. Satrec Initiative has a market cap of 198 billion won. Satrec Initiative is one of the best small cap companies with specialized technologies in the space satellite systems in Korea.Satrec Initiative is one of the few satellite system development companies that has been able to export products to other countries such as the UAE, Malaysia, and Singapore. Satrec Iniative is planning to IPO two of its subsidiaries, including SIIS (SI Imaging Services) and SIA (SI Analytics). Satrec is in the midst of selecting the main underwriters to lead these IPOs. Satrec Initiative owns 62.5% of SIIS  and 89.2% of SIA.A key investment thesis on Satrec Initiative is the fact that this company has one of the best technologies for developing and producing satellite systems and related components in Korea. Valuations are not too demanding and they are currently trading at relatively lower end of the historical valuation multiples. We are including Satrec Initiative (099320 KS) in our model portfolio.

Korea Small Cap Gem #5: Satrec Initiative

Cross Asset Strategy

<p><strong>Review of Top 10 Issues Related to Korean stock market, economy, &amp; politics in May 2020</strong></p><ul>
<li>Big interest in SK Biopharm IPO</li>
<li>Announcements of IPOs of Krafton, Big Hit Entertainment, &amp; Kakao Games</li>
<li>Fintech conference &amp; major outperformance of fintech-related "big tech" stocks</li>
<li>Korean Air's 1 trillion won rights issue</li>
<li>"Korean New Deal" or "Green Digital New Deal"</li>
<li>Final Bi-Annual Rebalance Announced for KOSPI200, KOSDAQ150, &amp; KRX300: KOSPI200 Changes</li>
<li>Underperformance of Samsung Electronics</li>
<li>COVID-19</li>
<li>Kim Jong-Un finally shows up publicly</li>
<li>Korean small-cap gem series (KG Inicis &amp; Hancom)</li>
</ul>

Review of Top 10 Issues Related to Korean stock market, economy, &amp; politics in May 2020
Big interest in SK Biopharm IPO
Announcements of IPOs of Krafton, Big Hit Entertainment, &amp; Kakao Games
Fintech conference &amp; major outperformance of fintech-related "big tech" stocks
Korean Air's 1 trillion won rights issue
"Korean New Deal" or "Green Digital New Deal"
Final Bi-Annual Rebalance Announced for KOSPI200, KOSDAQ150, &amp; KRX300: KOSPI200 Changes
Underperformance of Samsung Electronics
COVID-19
Kim Jong-Un finally shows up publicly
Korean small-cap gem series (KG Inicis &amp; Hancom)


Korea Stock Market Monthly Recap #48 (May 2020)

<ul>
<li>The Korea Exchange announced its bi-annual changes to KOSPI200 today. These changes are effective 12 June 2020. For the KOSPI200, there were 11 new additions including <a href="https://www.smartkarma.com/entities/hanjin-kal-corp" target="_blank" data-smartkarma-citation="entities:19086:1" rel="noopener">Hanjin KAL Corp (180640 KS)</a>, <a href="https://www.smartkarma.com/entities/asiana-airlines" target="_blank" data-smartkarma-citation="entities:1896:1" rel="noopener">Asiana Airlines (020560 KS)</a>, and <a href="https://www.smartkarma.com/entities/lotte-tour-development-co-ltd" target="_blank" data-smartkarma-citation="entities:5526:1" rel="noopener">Lotte Tour Development Co, Ltd. (032350 KS)</a>.  There were also 11 deletions including <a href="https://www.smartkarma.com/entities/namyang-dairy-products-co" target="_blank" data-smartkarma-citation="entities:16249:1" rel="noopener">Namyang Dairy Products Co (003920 KS)</a>, <a href="https://www.smartkarma.com/entities/ak-holdings-inc" target="_blank" data-smartkarma-citation="entities:3472:1" rel="noopener">Ak Holdings Inc (006840 KS)</a>, and <a href="https://www.smartkarma.com/entities/hyosung-heavy-industries-corp" target="_blank" data-smartkarma-citation="entities:27750:1" rel="noopener">Hyosung Heavy Industries Corp (298040 KS)</a>.  </li>
<li>Comparing the actual inclusions vs. our estimates for the<strong> KOSPI 200 Inclusion</strong>, five of the companies were included in both lists (Hajin Kal, POSCO Chem, F&amp;F, Asiana Airlines, &amp; HMM). </li>
<li>Comparing the actual exclusions vs. our estimates for the<strong> KOSPI 200 Exclusion</strong>, seven of the companies were included in both lists (Hyosung Heavy, Ssangyong Motor, Namyang Dairy, Hyundai Livart, Hankook Shell Oil, Tongyang, and AK Holdings). </li>
</ul>


The Korea Exchange announced its bi-annual changes to KOSPI200 today. These changes are effective 12 June 2020. For the KOSPI200, there were 11 new additions including Hanjin KAL Corp (180640 KS), Asiana Airlines (020560 KS), and Lotte Tour Development Co, Ltd. (032350 KS).  There were also 11 deletions including Namyang Dairy Products Co (003920 KS), Ak Holdings Inc (006840 KS), and Hyosung Heavy Industries Corp (298040 KS).  
Comparing the actual inclusions vs. our estimates for the KOSPI 200 Inclusion, five of the companies were included in both lists (Hajin Kal, POSCO Chem, F&amp;F, Asiana Airlines, &amp; HMM). 
Comparing the actual exclusions vs. our estimates for the KOSPI 200 Exclusion, seven of the companies were included in both lists (Hyosung Heavy, Ssangyong Motor, Namyang Dairy, Hyundai Livart, Hankook Shell Oil, Tongyang, and AK Holdings). 


Final Bi-Annual Rebalance Announced for KOSPI200, KOSDAQ150, & KRX300

South Korea

KG Inicis Co., Ltd. develops and provides e-commerce settlement processing services through the electronic payment software used in Internet shopping malls.  The Company also operates an online marketplace, which allows online shopping and auction.

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KG Inicis Co Ltd (035600 KS)

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

The KRX has announced changes to the KRX New Deal indices that will be effective after the close of trading on 25 February. Pearl Abyss is...

Brian Freitas

MYEG: Vaccine and Concession - Worries Unfounded

Many investors worried about a few things on My E.G. including ties with the previous government that will cause loss of concession (corporate...

Henry Soediarko

Korea Small Cap Gem #5: Satrec Initiative

Satrec Initiative (099320 KS) is the 5th company in our Korea Small Cap Gems series. Satrec Initiative has a market cap of 198 billion won. Satrec...

Douglas Kim

Korea Stock Market Monthly Recap #48 (May 2020)

Review of Top 10 Issues Related to Korean stock market, economy, & politics in May 2020 Big interest in SK Biopharm IPO Announcements of IPOs...

Douglas Kim

Final Bi-Annual Rebalance Announced for KOSPI200, KOSDAQ150, & KRX300

The Korea Exchange announced its bi-annual changes to KOSPI200 today. These changes are effective 12 June 2020. For the KOSPI200, there were 11...

Douglas Kim

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