Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul><li>Coupang is perhaps the fastest growing E-commerce company in the world. </li><li>We highlight five special sauces of what makes Coupang great. </li></ul><ol><li>Ultra customer-centric, fast delivery system (vertically integrated)</li><li>Focus on repeat customers with low(est) prices </li><li>"Best-in-class" mobile app for E-commerce</li><li>Huge cash war chest with $US1 billion investment from Softbank, your ultimate "Godfather" venture capitalist.</li><li>Economies of Scale - Bargaining power with vendors</li></ol><ul><li>Despite its great progress, Coupang has its share of problems including recent decline in average monthly visitors, which we explain. </li><li>If you are interested in E-commerce, logistics, and retail sectors in Korea, Coupang is a must know company. </li></ul>

Coupang is perhaps the fastest growing E-commerce company in the world. We highlight five special sauces of what makes Coupang great. Ultra customer-centric, fast delivery system (vertically integrated)Focus on repeat customers with low(est) prices "Best-in-class" mobile app for E-commerceHuge cash war chest with $US1 billion investment from Softbank, your ultimate "Godfather" venture capitalist.Economies of Scale - Bargaining power with vendorsDespite its great progress, Coupang has its share of problems including recent decline in average monthly visitors, which we explain. If you are interested in E-commerce, logistics, and retail sectors in Korea, Coupang is a must know company. 

Coupang: Fastest Growing E-Commerce Company in the World

<ul>
<li>In this report, we provide an overview of our coverage in the Korean equity space which we have been highlighting in the past three months. </li>
<li>There is a common theme to our coverage in the Korean equity space - which is to highlight companies (both value and growth) with innovative business models/gaining market shares that are number one player in their respective sectors. By picking the number one players in their respective markets, we believe it could improve the overall risk/return ratio of a…</li>
</ul>


In this report, we provide an overview of our coverage in the Korean equity space which we have been highlighting in the past three months. 
There is a common theme to our coverage in the Korean equity space - which is to highlight companies (both value and growth) with innovative business models/gaining market shares that are number one player in their respective sectors. By picking the number one players in their respective markets, we believe it could improve the overall risk/return ratio of a…


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.

Event-Driven

I added Kolmar Korea Holdings to my synthetic subsidiary holding company list. As a result, I now track a total of 7 synthetic subsidiary holding companies, of which 3 names are currently at -1.0σ (or close) on a 20-day moving average.  <table class="table table-striped">
<colgroup>
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<td data-sheets-value='{"1":2,"2":"Holdco"}'>Holdco</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Subsidiaries in a synthetic"}'>Subsidiaries in a synthetic</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Sigma (σ) on a 20-day moving average"}'>Sigma (σ) on a 20-day moving average</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LG Corp"}' data-sheets-formula="=Data!R[-1]C[1]">LG Corp</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"LG Chem Ltd &amp; 3 others"}' data-sheets-formula='=googlefinance(R[0]C[3], "name")&amp;" &amp; "&amp;R[0]C[4]-1&amp;" others" '>LG Chem Ltd &amp; 3 others</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.9455012913617945}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[10]C[-1]">0.95</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Samsung C&amp;T Corp"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=Data!R[-2]C[6]">Samsung C&amp;T Corp</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd &amp; 1 other"}' data-sheets-formula='=googlefinance(R[0]C[3], "name")&amp;" &amp; "&amp;R[0]C[4]-1&amp;" other" '>Samsung Electronics Co Ltd &amp; 1 other</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.34377918950498587}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[10]C[-1]">-0.34</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Inc"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=Data!R[-3]C[9]">SK Inc</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"SK Innovation Co Ltd &amp; 2 others"}' data-sheets-formula='=googlefinance(R[0]C[3], "name")&amp;" &amp; "&amp;R[0]C[4]-1&amp;" others" '>SK Innovation Co Ltd &amp; 2 others</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-1.5358952902702356}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[10]C[-1]">-1.54</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Lotte Corp"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=Data!R[-4]C[13]">Lotte Corp</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Lotte Chemical Corp &amp; 1 other"}' data-sheets-formula='=googlefinance(R[0]C[3], "name")&amp;" &amp; "&amp;R[0]C[4]-1&amp;" other" '>Lotte Chemical Corp &amp; 1 other</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.48761167037793357}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[10]C[-1]">0.49</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hanwha Corp"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=Data!R[-5]C[16]">Hanwha Corp</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Hanwha Solutions Corp &amp; 2 others"}' data-sheets-formula='=googlefinance(R[0]C[3], "name")&amp;" &amp; "&amp;R[0]C[4]-1&amp;" others" '>Hanwha Solutions Corp &amp; 2 others</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.9140754552511184}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[10]C[-1]">-0.91</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"CJ Corp"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=Data!R[-6]C[20]">CJ Corp</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"CJ Cheiljedang Corp &amp; 1 other"}' data-sheets-formula='=googlefinance(R[0]C[3], "name")&amp;" &amp; "&amp;R[0]C[4]-1&amp;" other" '>CJ Cheiljedang Corp &amp; 1 other</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.29546809089979403}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[10]C[-1]">-0.30</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kolmar Korea Holdings Co Ltd"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=Data!R[-7]C[23]">* Kolmar Korea Holdings Co Ltd</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"KolmarBNH Co Ltd &amp; 1 other"}' data-sheets-formula='=googlefinance(R[0]C[3], "name")&amp;" &amp; "&amp;R[0]C[4]-1&amp;" other" '>KolmarBNH Co Ltd &amp; 1 other</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-1.2339571192225773}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula="=R[10]C[-1]">-1.23</td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><div class="content-highlight">Starting with this insight, I made some changes in my calculation of NAV. I estimated each holding company's operating operation based on their latest de-consolidated operating profit. It is mostly brand royalty and office rental income. I used operating profit to exclude dividend income.</div>The revised NAV discount calculations show that they are trading mostly within a 50~60% discount to the NAV. The largest discount goes to Samsung C&amp;T, while CJ Corp enjoys the lowest discount to its NAV. Kolmar Korea Holdings features a 53.41% discount to the NAV. It is a two-subsidiary holding company as they account for 89.85% of the NAV.<table class="table table-striped">
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<tbody>
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<td style="width: 170.909px;" data-sheets-value='{"1":2,"2":"Discount &amp; weight"}'>Discount &amp; weight</td>
<td style="text-align: right; width: 144.545px;" data-sheets-value='{"1":2,"2":"NAV discount"}'>NAV discount</td>
<td style="text-align: right; width: 171.818px;" data-sheets-value='{"1":2,"2":"Synthetic subsidiary weight in NAV"}'>Synthetic subsidiary weight in NAV</td>
<td style="text-align: right; width: 173.636px;" data-sheets-value='{"1":2,"2":"Synthetic subsidiary weight in GAV"}'>Synthetic subsidiary weight in GAV</td>
</tr>
<tr>
<td style="width: 170.909px;" data-sheets-value='{"1":2,"2":"LG Corp"}' data-sheets-formula="=R[-20]C[0]">LG Corp</td>
<td style="text-align: right; width: 144.545px;" data-sheets-value='{"1":3,"3":0.5892560369567199}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[8]C[0]">58.93%</td>
<td style="text-align: right; width: 171.818px;" data-sheets-value='{"1":3,"3":0.7469661842230064}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[12]C[-1]:R[15]C[-1])">74.70%</td>
<td style="text-align: right; width: 173.636px;" data-sheets-value='{"1":3,"3":0.7703324033104589}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[12]C[-1]:R[15]C[-1])">77.03%</td>
</tr>
<tr>
<td style="width: 170.909px;" data-sheets-value='{"1":2,"2":"Samsung C&amp;T Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-20]C[0]">Samsung C&amp;T Corp</td>
<td style="text-align: right; width: 144.545px;" data-sheets-value='{"1":3,"3":0.6059911856682164}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[7]C[18]">60.60%</td>
<td style="text-align: right; width: 171.818px;" data-sheets-value='{"1":3,"3":0.8026397073991763}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[11]C[17]:R[12]C[17])">80.26%</td>
<td style="text-align: right; width: 173.636px;" data-sheets-value='{"1":3,"3":0.8033397666310156}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[11]C[17]:R[12]C[17])">80.33%</td>
</tr>
<tr>
<td style="width: 170.909px;" data-sheets-value='{"1":2,"2":"SK Inc"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-20]C[0]">SK Inc</td>
<td style="text-align: right; width: 144.545px;" data-sheets-value='{"1":3,"3":0.5173210462000755}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[6]C[24]">51.73%</td>
<td style="text-align: right; width: 171.818px;" data-sheets-value='{"1":3,"3":0.689824350306107}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[10]C[23]:R[12]C[23])">68.98%</td>
<td style="text-align: right; width: 173.636px;" data-sheets-value='{"1":3,"3":0.5561346382258038}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[10]C[23]:R[12]C[23])">55.61%</td>
</tr>
<tr>
<td style="width: 170.909px;" data-sheets-value='{"1":2,"2":"Lotte Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-20]C[0]">Lotte Corp</td>
<td style="text-align: right; width: 144.545px;" data-sheets-value='{"1":3,"3":0.5968470100117429}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[5]C[30]">59.68%</td>
<td style="text-align: right; width: 171.818px;" data-sheets-value='{"1":3,"3":0.5945490346234877}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[9]C[29]:R[10]C[29])">59.45%</td>
<td style="text-align: right; width: 173.636px;" data-sheets-value='{"1":3,"3":0.4605223220736323}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[9]C[29]:R[10]C[29])">46.05%</td>
</tr>
<tr>
<td style="width: 170.909px;" data-sheets-value='{"1":2,"2":"Hanwha Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-20]C[0]">Hanwha Corp</td>
<td style="text-align: right; width: 144.545px;" data-sheets-value='{"1":3,"3":0.5852680864437579}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[4]C[36]">58.53%</td>
<td style="text-align: right; width: 171.818px;" data-sheets-value='{"1":3,"3":0.877152435515112}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[8]C[35]:R[10]C[35])">87.72%</td>
<td style="text-align: right; width: 173.636px;" data-sheets-value='{"1":3,"3":0.5736380974953866}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[8]C[35]:R[10]C[35])">57.36%</td>
</tr>
<tr>
<td style="width: 170.909px;" data-sheets-value='{"1":2,"2":"CJ Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-20]C[0]">CJ Corp</td>
<td style="text-align: right; width: 144.545px;" data-sheets-value='{"1":3,"3":0.47009805549763056}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[3]C[42]">47.01%</td>
<td style="text-align: right; width: 171.818px;" data-sheets-value='{"1":3,"3":0.8302884441278204}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[7]C[41]:R[8]C[41])">83.03%</td>
<td style="text-align: right; width: 173.636px;" data-sheets-value='{"1":3,"3":0.7147074125488337}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[7]C[41]:R[8]C[41])">71.47%</td>
</tr>
<tr>
<td style="width: 170.909px;" data-sheets-value='{"1":2,"2":"Kolmar Korea Holdings Co Ltd"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-20]C[0]">* Kolmar Korea Holdings Co Ltd</td>
<td style="text-align: right; width: 144.545px;" data-sheets-value='{"1":3,"3":0.5340958452553032}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[2]C[48]">53.41%</td>
<td style="text-align: right; width: 171.818px;" data-sheets-value='{"1":3,"3":0.8984875914324668}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[6]C[47]:R[7]C[47])">89.85%</td>
<td style="text-align: right; width: 173.636px;" data-sheets-value='{"1":3,"3":0.8395502332299523}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=sum(NAV!R[6]C[47]:R[7]C[47])">83.96%</td>
</tr>
<tr><td colspan="4" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>SK Inc and Hanwha Corp are trading 6.53% and 3.30%, respectively, below the 180-day price ratio average relative to their synthetic subsidiaries. As for Kolmar Korea, it is 6.47% above the 180-day mean.<table class="table table-striped">
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<col width="70">
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<col width="70">
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<td style="width: 180.909px;" data-sheets-value='{"1":2,"2":"Price ratio"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Price ratio</td>
<td style="text-align: right; width: 150.909px;" data-sheets-value='{"1":2,"2":"%Δ to 180-day mean"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>%Δ to 180-day mean</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":2,"2":"%Δ to 180-day high"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>%Δ to 180-day high</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":2,"2":"%Δ to 180-day low"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>%Δ to 180-day low</td>
</tr>
<tr>
<td style="width: 180.909px;" data-sheets-value='{"1":2,"2":"LG Corp"}' data-sheets-formula="=R[-30]C[0]">LG Corp</td>
<td style="text-align: right; width: 150.909px;" data-sheets-value='{"1":3,"3":0.27272027473479676}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">27.27%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":-0.026235211045486387}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">-2.62%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":0.5671932907320105}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">56.72%</td>
</tr>
<tr>
<td style="width: 180.909px;" data-sheets-value='{"1":2,"2":"Samsung C&amp;T Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-30]C[0]">Samsung C&amp;T Corp</td>
<td style="text-align: right; width: 150.909px;" data-sheets-value='{"1":3,"3":-0.006511973440811065}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">-0.65%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":-0.14552204142483482}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">-14.55%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":0.0747273432141876}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">7.47%</td>
</tr>
<tr>
<td style="width: 180.909px;" data-sheets-value='{"1":2,"2":"SK Inc"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-30]C[0]">SK Inc</td>
<td style="text-align: right; width: 150.909px;" data-sheets-value='{"1":3,"3":-0.06531341088823561}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">-6.53%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":-0.21895641555030068}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">-21.90%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":0.07921083141757403}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">7.92%</td>
</tr>
<tr>
<td style="width: 180.909px;" data-sheets-value='{"1":2,"2":"Lotte Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-30]C[0]">Lotte Corp</td>
<td style="text-align: right; width: 150.909px;" data-sheets-value='{"1":3,"3":0.004316013360576035}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">0.43%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":-0.2435059662116036}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">-24.35%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":0.2347904810497161}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">23.48%</td>
</tr>
<tr>
<td style="width: 180.909px;" data-sheets-value='{"1":2,"2":"Hanwha Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-30]C[0]">Hanwha Corp</td>
<td style="text-align: right; width: 150.909px;" data-sheets-value='{"1":3,"3":-0.03301422776748001}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">-3.30%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":-0.20602404741618788}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">-20.60%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":0.09499308319149713}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">9.50%</td>
</tr>
<tr>
<td style="width: 180.909px;" data-sheets-value='{"1":2,"2":"CJ Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-30]C[0]">CJ Corp</td>
<td style="text-align: right; width: 150.909px;" data-sheets-value='{"1":3,"3":0.06798750716362237}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">6.80%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":-0.09780200889716528}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">-9.78%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":0.19502041976348705}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">19.50%</td>
</tr>
<tr>
<td style="width: 180.909px;" data-sheets-value='{"1":2,"2":"Kolmar Korea Holdings Co Ltd"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-30]C[0]">* Kolmar Korea Holdings Co Ltd</td>
<td style="text-align: right; width: 150.909px;" data-sheets-value='{"1":3,"3":0.06471060029942335}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">6.47%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":-0.07838372679745396}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">-7.84%</td>
<td style="text-align: right; width: 164.545px;" data-sheets-value='{"1":3,"3":0.20003594429551463}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=(R[0]C5-R[0]C[4])/R[0]C[4]">20.00%</td>
</tr>
<tr><td colspan="4" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

I added Kolmar Korea Holdings to my synthetic subsidiary holding company list. As a result, I now track a total of 7 synthetic subsidiary holding companies, of which 3 names are currently at -1.0σ (or close) on a 20-day moving average.  







Holdco
Subsidiaries in a synthetic
Sigma (σ) on a 20-day moving average


LG Corp
LG Chem Ltd &amp; 3 others
0.95


Samsung C&amp;T Corp
Samsung Electronics Co Ltd &amp; 1 other
-0.34


SK Inc
SK Innovation Co Ltd &amp; 2 others
-1.54


Lotte Corp
Lotte Chemical Corp &amp; 1 other
0.49


Hanwha Corp
Hanwha Solutions Corp &amp; 2 others
-0.91


CJ Corp
CJ Cheiljedang Corp &amp; 1 other
-0.30


* Kolmar Korea Holdings Co Ltd
KolmarBNH Co Ltd &amp; 1 other
-1.23

Source: KRX

Starting with this insight, I made some changes in my calculation of NAV. I estimated each holding company's operating operation based on their latest de-consolidated operating profit. It is mostly brand royalty and office rental income. I used operating profit to exclude dividend income.The revised NAV discount calculations show that they are trading mostly within a 50~60% discount to the NAV. The largest discount goes to Samsung C&amp;T, while CJ Corp enjoys the lowest discount to its NAV. Kolmar Korea Holdings features a 53.41% discount to the NAV. It is a two-subsidiary holding company as they account for 89.85% of the NAV.








Discount &amp; weight
NAV discount
Synthetic subsidiary weight in NAV
Synthetic subsidiary weight in GAV


LG Corp
58.93%
74.70%
77.03%


Samsung C&amp;T Corp
60.60%
80.26%
80.33%


SK Inc
51.73%
68.98%
55.61%


Lotte Corp
59.68%
59.45%
46.05%


Hanwha Corp
58.53%
87.72%
57.36%


CJ Corp
47.01%
83.03%
71.47%


* Kolmar Korea Holdings Co Ltd
53.41%
89.85%
83.96%

Source: KRX

SK Inc and Hanwha Corp are trading 6.53% and 3.30%, respectively, below the 180-day price ratio average relative to their synthetic subsidiaries. As for Kolmar Korea, it is 6.47% above the 180-day mean.








Price ratio
%Δ to 180-day mean
%Δ to 180-day high
%Δ to 180-day low


LG Corp
27.27%
-2.62%
56.72%


Samsung C&amp;T Corp
-0.65%
-14.55%
7.47%


SK Inc
-6.53%
-21.90%
7.92%


Lotte Corp
0.43%
-24.35%
23.48%


Hanwha Corp
-3.30%
-20.60%
9.50%


CJ Corp
6.80%
-9.78%
19.50%


* Kolmar Korea Holdings Co Ltd
6.47%
-7.84%
20.00%

Source: KRX



Korea Synthetic Subsidiary Stub Trade: 7 in Total with 1 New One

South Korea

Kolmar Korea Holdings Co.,Ltd operates as a holding company. The Company through its subsidiaries, provide cosmetics manufacturing, health food manufacturing, pharmaceuticals development, and other services. Kolmar Korea Holdings offers services in Korea.

Price Gauge
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Kolmar Korea Holdings (024720 KS)

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