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.

Index Rebalance

<ul>
<li>We have seven constituents of KOSPI 200, which are subject to a float rate adjustment due to major shareholder stake sales and lockup release in the upcoming rebalancing in December</li>
<li>In terms of passive impact x ADTV, LG Energy Solution, KT Corp, and Shinhan Financial are expected to receive the most attention from flow traders.</li>
<li>The preemptive setups of flow traders will likely be more inclined toward these float rate changes since this December rebalance will have the lowest number of constituent changes ever.</li>
</ul>


We have seven constituents of KOSPI 200, which are subject to a float rate adjustment due to major shareholder stake sales and lockup release in the upcoming rebalancing in December
In terms of passive impact x ADTV, LG Energy Solution, KT Corp, and Shinhan Financial are expected to receive the most attention from flow traders.
The preemptive setups of flow traders will likely be more inclined toward these float rate changes since this December rebalance will have the lowest number of constituent changes ever.


KOSPI 200 Index Review: Names Subject to Float Rate Adjustment

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Millie's Library is getting ready to complete its IPO on the KOSDAQ exchange in November. The IPO price range is from 21,500 won to 25,000 won per share.</li>
<li>Millie's Library is the largest platform for e-books subscription in Korea. The major shareholder of Millie's Library is Genie Music Corp (an affiliate of KT Group) with a 38.63% stake. </li>
<li>The company started to generate positive operating margin in 1H 2022 when it had sales of 21.1 billion won (up 66.1% YoY) and operating margin of 5%.</li>
</ul>


Millie's Library is getting ready to complete its IPO on the KOSDAQ exchange in November. The IPO price range is from 21,500 won to 25,000 won per share.
Millie's Library is the largest platform for e-books subscription in Korea. The major shareholder of Millie's Library is Genie Music Corp (an affiliate of KT Group) with a 38.63% stake. 
The company started to generate positive operating margin in 1H 2022 when it had sales of 21.1 billion won (up 66.1% YoY) and operating margin of 5%.


Event-Driven

<ul>
<li>On 7 September, Hyundai Motor (005380 KS) announced a major stock swap with KT Corp (030200 KS). </li>
<li>KT will exchange about 750 billion won (7.7%) of KT's treasury stock for 445.6 billion won (1.04%) of Hyundai Motor shares and 300.3 billion won (1.46%) of Hyundai Mobis shares.</li>
<li>This stock swap is likely to have a bigger positive impact on KT versus Hyundai Motor and Hyundai Mobis. </li>
</ul>


On 7 September, Hyundai Motor (005380 KS) announced a major stock swap with KT Corp (030200 KS). 
KT will exchange about 750 billion won (7.7%) of KT's treasury stock for 445.6 billion won (1.04%) of Hyundai Motor shares and 300.3 billion won (1.46%) of Hyundai Mobis shares.
This stock swap is likely to have a bigger positive impact on KT versus Hyundai Motor and Hyundai Mobis. 


Major Stock Swap Between Hyundai Motor Group and KT Corp

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>We are starting to see early signs of a potential bottom on MSCI EM (EEM-US).</li>
<li>Specifically, the EEM-US has reversed topside its 6-month downtrend. If MSCI EM has indeed bottomed, we want to be buying the leaders; that is where this report comes in.</li>
<li>Specific themes include attractive opportunities in India and Thailand, and also many in Taiwan and South Korea. Attractive Sectors include Energy, Financials, Materials, and Industrials.</li>
</ul>


We are starting to see early signs of a potential bottom on MSCI EM (EEM-US).
Specifically, the EEM-US has reversed topside its 6-month downtrend. If MSCI EM has indeed bottomed, we want to be buying the leaders; that is where this report comes in.
Specific themes include attractive opportunities in India and Thailand, and also many in Taiwan and South Korea. Attractive Sectors include Energy, Financials, Materials, and Industrials.


Finding Leadership Within Emerging Markets

<ul>
<li>Hankyung Business Daily reported today that KT Corp (030200 KS) is close to selling its 36.9% controlling stake in Kt Submarine (060370 KS) to LS Cable &amp; System.</li>
<li>Once the KT Submarine deal is completed, this could positively impact KT Corp's dividends.</li>
<li>KT Corp's selling of its controlling stake in KT Submarine would fit along its restructuring plans to sell off some businesses that are considered non-core.</li>
</ul>


Hankyung Business Daily reported today that KT Corp (030200 KS) is close to selling its 36.9% controlling stake in Kt Submarine (060370 KS) to LS Cable &amp; System.
Once the KT Submarine deal is completed, this could positively impact KT Corp's dividends.
KT Corp's selling of its controlling stake in KT Submarine would fit along its restructuring plans to sell off some businesses that are considered non-core.


KT Corp: Close to Selling Its Subsidiary KT Submarine to LS Cable & System

South Korea

KT Corporation provides telecommunication services including local, long distance, and international calling, satellite communication, data transmission, and wireless telephone services in South Korea.  The Company also offers network portal and high-speed Internet access services using asymmetric digital subscriber lines (ADSLs).

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KT Corp (030200 KS)

KOSPI 200 Index Review: Names Subject to Float Rate Adjustment

This post investigates the names subject to a free float rate adjustment in the upcoming rebalancing of the KOSPI 200 in December.

Sanghyun Park

Millie's Library IPO Preview

Millie's Library is the largest platform for e-books subscription in Korea. Millie's Library is getting ready to complete its IPO on the KOSDAQ...

Douglas Kim

Major Stock Swap Between Hyundai Motor Group and KT Corp

On 7 September, Hyundai Motor Group announced a major stock swap with KT Corp (030200 KS) worth about 750 billion won, which is likely to have a...

Douglas Kim

Finding Leadership Within Emerging Markets

We are starting to see early signs of a potential bottom on $EEM. Specifically, the EEM has reversed topside its 6-month downtrend. If EEM has...

Vermilion Research

KT Corp: Close to Selling Its Subsidiary KT Submarine to LS Cable & System

Hankyung Business Daily reported today that KT Corp (030200 KS) is close to selling its 36.9% controlling stake in Kt Submarine (060370 KS) to LS...

Douglas Kim

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