Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Krafton (259960 KS) announced a major shareholder return policy totaling more than 1 trillion won (US$690 million) over the next three years (2026 - 2028).</li>
<li>The shareholder return policy includes paying 100 billion won annually in cash dividends for three years and buying back and cancelling more than 700 billion won in treasury shares.</li>
<li>This1 trillion won shareholder return program over three years (333 billion won annually), represents annual shareholder return of nearly 3% of its current market cap (11.2 trillion won). </li>
</ul>


Krafton (259960 KS) announced a major shareholder return policy totaling more than 1 trillion won (US$690 million) over the next three years (2026 - 2028).
The shareholder return policy includes paying 100 billion won annually in cash dividends for three years and buying back and cancelling more than 700 billion won in treasury shares.
This1 trillion won shareholder return program over three years (333 billion won annually), represents annual shareholder return of nearly 3% of its current market cap (11.2 trillion won). 


Krafton (1 Trillion Won Shareholder Returns Next 3 Years)

External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

<ul><li>Revenue from Peacekeeper Elite (Chinese adaptation of PUBG Mobile) is showing signs of a sharp rebound following the normalization of promotional activities early this year.</li><li>Based on Sensor Tower estimates, the game’s average daily iOS revenue in January is more than double the 4Q25 level.</li><li>Compared with the pre-Lunar New Year update period last year (Jan. 1-17), average daily revenue over the same period this year is estimated to be up 34% YoY.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Revenue from Peacekeeper Elite (Chinese adaptation of PUBG Mobile) is showing signs of a sharp rebound following the normalization of promotional activities early this year.Based on Sensor Tower estimates, the game’s average daily iOS revenue in January is more than double the 4Q25 level.Compared with the pre-Lunar New Year update period last year (Jan. 1-17), average daily revenue over the same period this year is estimated to be up 34% YoY.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Krafton (259960 KS/Buy)Focus on 1Q26 Earnings Surprise Potential; Time to Buy

Cross Asset Strategy

<ul>
<li>In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks (6 to 20 June 2025).</li>
<li>The top three picks in the past two weeks included Samsung C&amp;T, Amorepacific Holdings, and Samsung Securities . They were offset by poor performances by Nongshim and Krafton. </li>
<li>The top 10 picks in this bi-weekly include Amorepacific Holdings, LG Corp, Hyundai Elevator, CS Wind, SK Hynix, Korea Investment Holdings, Samsung F&amp;M Insurance, JYP Entertainment, HiteJinro, and SK Inc.</li>
</ul>


In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks (6 to 20 June 2025).
The top three picks in the past two weeks included Samsung C&amp;T, Amorepacific Holdings, and Samsung Securities . They were offset by poor performances by Nongshim and Krafton. 
The top 10 picks in this bi-weekly include Amorepacific Holdings, LG Corp, Hyundai Elevator, CS Wind, SK Hynix, Korea Investment Holdings, Samsung F&amp;M Insurance, JYP Entertainment, HiteJinro, and SK Inc.


Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (6 June to 20 2025)

<ul>
<li>Samsung Electronics announced that it will revamp its executive compensation system to include treasury shares as incentives. Samsung has benchmarked TSMC in terms of paying treasury shares to its employees.</li>
<li>Samsung Electronics' decision to revamp its executive compensation system to include treasury shares as incentives aligns the interests of the shareholders along with the company's management.</li>
<li>Now that Samsung Electronics has incorporated stock based incentive system, it is likely that other Korean companies that could follow suit. </li>
</ul>


Samsung Electronics announced that it will revamp its executive compensation system to include treasury shares as incentives. Samsung has benchmarked TSMC in terms of paying treasury shares to its employees.
Samsung Electronics' decision to revamp its executive compensation system to include treasury shares as incentives aligns the interests of the shareholders along with the company's management.
Now that Samsung Electronics has incorporated stock based incentive system, it is likely that other Korean companies that could follow suit. 


Samsung Electronics: Revamping Executive Compensation to Include Stocks - Benchmarking TSMC

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

<ul>
<li>Global equities (MSCI ACWI -- ACWI-US) and the U.S. (S&amp;P 500) remain topside their respective bases at $117 and 5650-5670.</li>
<li>As discussed last week (October 17, 2024 Int'l Compass), we upgraded our outlook on global equities (MSCI ACWI) to bullish, saying to use any pre-election pullback as opportunity to buy.</li>
<li>The pullback appears to be underway, and we are buyers as long as ACWI-US and S&amp;P 500 remain above their aforementioned bases</li>
</ul>


Global equities (MSCI ACWI -- ACWI-US) and the U.S. (S&amp;P 500) remain topside their respective bases at $117 and 5650-5670.
As discussed last week (October 17, 2024 Int'l Compass), we upgraded our outlook on global equities (MSCI ACWI) to bullish, saying to use any pre-election pullback as opportunity to buy.
The pullback appears to be underway, and we are buyers as long as ACWI-US and S&amp;P 500 remain above their aforementioned bases


Buying Global Technology; SPX and MSCI ACWI Above Base Supports; Sea, TSMC, SAP, Luxshare, & More

South Korea

Krafton, Inc. operates as a game development company. The Company develops console games, mobile games, computer games, and other related products. Krafton markets its products throughout South Korea.

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Krafton (259960 KS)

Krafton (1 Trillion Won Shareholder Returns Next 3 Years)

Krafton (259960 KS) announced a major shareholder return policy totaling more than 1 trillion won (US$690 million) over the next three years (2026 ...

Douglas Kim