Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>On 10 October, Kiwoom Securities announced shareholder friendly policies. This could lead to Kiwoom Securities outperforming other major Korean securities companies in the next several months. </li>
<li>First, the company will return more than 30% of its net profit to the shareholders in the next three years through dividends and share buybacks/cancellations of treasury shares.</li>
<li>In addition, Kiwoom Securities plans to cancel all 1.4 million treasury shares it currently holds, representing 5.3% of outstanding shares.</li>
</ul>


On 10 October, Kiwoom Securities announced shareholder friendly policies. This could lead to Kiwoom Securities outperforming other major Korean securities companies in the next several months. 
First, the company will return more than 30% of its net profit to the shareholders in the next three years through dividends and share buybacks/cancellations of treasury shares.
In addition, Kiwoom Securities plans to cancel all 1.4 million treasury shares it currently holds, representing 5.3% of outstanding shares.


Kiwoom Securities: Announces Material Improvement in Shareholder Return Policies

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX Stocks as of Apr 12th which has an aggregated short interest worth USD6.7bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in HMM, LG Electronics .</li>
</ul>


We analyzed the changes in short interest of KRX Stocks as of Apr 12th which has an aggregated short interest worth USD6.7bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in HMM, LG Electronics .


KRX Short Interest Weekly (Apr 12th): HMM, LG Electronics

Event-Driven

<ul>
<li>After the market close today, Kim Ik-Rae (Chairman of the Daou Kiwoom Group) announced his resignation of the Chairman position.</li>
<li>Chairman Kim mentioned he has not done anything legally wrong. He will donate the entire amount (60.5 billion won) which was gained from selling 1.4 million shares of Daou Data. </li>
<li>We believe that Kiwoom Securities' share price could fall additional 10-30% in the next several weeks/months. This could be offset by a large share buyback &amp; cancellation by the company. </li>
</ul>


After the market close today, Kim Ik-Rae (Chairman of the Daou Kiwoom Group) announced his resignation of the Chairman position.
Chairman Kim mentioned he has not done anything legally wrong. He will donate the entire amount (60.5 billion won) which was gained from selling 1.4 million shares of Daou Data. 
We believe that Kiwoom Securities' share price could fall additional 10-30% in the next several weeks/months. This could be offset by a large share buyback &amp; cancellation by the company. 


Chairman Kim Ik-Rae of Daou Kiwoom Group Resigns & Says Sorry - But Is This Enough?

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>The recent matched order operation's ringleader called in local major broadcasting companies for an interview and claimed the sell orders through SG on Monday were not from their CFD accounts.</li>
<li>The trigger is Kiwoom Securities' Chairman Kim, who created a continuous and rapid decline in stock prices and led to a vicious cycle of endless margin calls and covering orders.</li>
<li>Rather than fishing for a bottom for the eight stocks from this point on, it seems necessary to actively design positions aimed at Kiwoom Securities' legal risk-induced stock price decline.</li>
</ul>


The recent matched order operation's ringleader called in local major broadcasting companies for an interview and claimed the sell orders through SG on Monday were not from their CFD accounts.
The trigger is Kiwoom Securities' Chairman Kim, who created a continuous and rapid decline in stock prices and led to a vicious cycle of endless margin calls and covering orders.
Rather than fishing for a bottom for the eight stocks from this point on, it seems necessary to actively design positions aimed at Kiwoom Securities' legal risk-induced stock price decline.


We Should Aim at Kiwoom Securities' Potential Legal Risk-Induced Stock Price Decline

<ul>
<li>One of the emerging trends in the Korean equity markets in the past several weeks has been the shift out of high beta, high P/E stocks to deep value stocks.</li>
<li>In this insight, we will discuss about the top 10 stocks in Korea with highest net cash as percentage of market cap. </li>
<li>These 10 stocks are up on average 2.9% YTD, outperforming KOSPI which is down 5.9% in the same period.</li>
</ul>


One of the emerging trends in the Korean equity markets in the past several weeks has been the shift out of high beta, high P/E stocks to deep value stocks.
In this insight, we will discuss about the top 10 stocks in Korea with highest net cash as percentage of market cap. 
These 10 stocks are up on average 2.9% YTD, outperforming KOSPI which is down 5.9% in the same period.


Top 10 Stocks in Korea With Highest Net Cash as Percentage of Market Cap

South Korea

KIWOOM Securities Co., Ltd. is an online financial institution.  The Company offers equity and fixed income securities brokerage, dealing, and underwriting services.  Kiwoom Securities provides its services to individual investors.

Kiwoom Securities (039490 KS)

Kiwoom Securities: Announces Material Improvement in Shareholder Return Policies

Kiwoom Securities announced shareholder-friendly policies, including returning over 30% of net profit to shareholders and cancelling all treasury...

Douglas Kim

KRX Short Interest Weekly (Apr 12th): HMM, LG Electronics

We analyzed KRX short interest report for the past week. We estimate the short interests were USD6.7bn and highlighted short interest changes in...

Ke Yan, CFA, FRM

Chairman Kim Ik-Rae of Daou Kiwoom Group Resigns & Says Sorry - But Is This Enough?

After the market close today, Kim Ik-Rae (Chairman of the Daou Kiwoom Group) announced his resignation of the Chairman position.

Douglas Kim

We Should Aim at Kiwoom Securities' Potential Legal Risk-Induced Stock Price Decline

This post investigates the new development of the recent matched order fraud incident and the potential trading opportunities on Kiwoom Securities.

Sanghyun Park

Top 10 Stocks in Korea With Highest Net Cash as Percentage of Market Cap

We will discuss about the top 10 stocks in Korea with highest net cash as percentage of market cap. These 10 stocks are up on average 2.9% YTD,...

Douglas Kim

Kiwoom Securities: Announces Material Improvement in Shareholder Return Policies

​Kiwoom Securities announced shareholder-friendly policies, including returning over 30% of net profit to shareholders and cancelling all treasury...

Douglas Kim

KRX Short Interest Weekly (Apr 12th): HMM, LG Electronics

We analyzed KRX short interest report for the past week. We estimate the short interests were USD6.7bn and highlighted short interest changes in...

Ke Yan, CFA, FRM

Chairman Kim Ik-Rae of Daou Kiwoom Group Resigns & Says Sorry - But Is This Enough?

After the market close today, Kim Ik-Rae (Chairman of the Daou Kiwoom Group) announced his resignation of the Chairman position.

Douglas Kim

We Should Aim at Kiwoom Securities' Potential Legal Risk-Induced Stock Price Decline

This post investigates the new development of the recent matched order fraud incident and the potential trading opportunities on Kiwoom Securities.

Sanghyun Park

Top 10 Stocks in Korea With Highest Net Cash as Percentage of Market Cap

We will discuss about the top 10 stocks in Korea with highest net cash as percentage of market cap. These 10 stocks are up on average 2.9% YTD,...

Douglas Kim

Kiwoom Securities announced shareholder-friendly policies, including returning over 30% of net profit to shareholders and cancelling all treasury...