Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>KT&amp;G announced a new shareholder return policy worth a total of 3.7 trillion won, including 2.4 trillion won in dividends and 1.3 trillion won in treasury shares buybacks by 2027.</li>
<li>On an annual basis, the total shareholder returns from 2025 to 2027 would be about 1.2 trillion won, which represents about 8.8% of the company's current market cap. </li>
<li>This is better than the one the company provided last year. KT&amp;G also reported solid results in 3Q 2024 driven by excellent results in core tobacco business. </li>
</ul>


KT&amp;G announced a new shareholder return policy worth a total of 3.7 trillion won, including 2.4 trillion won in dividends and 1.3 trillion won in treasury shares buybacks by 2027.
On an annual basis, the total shareholder returns from 2025 to 2027 would be about 1.2 trillion won, which represents about 8.8% of the company's current market cap. 
This is better than the one the company provided last year. KT&amp;G also reported solid results in 3Q 2024 driven by excellent results in core tobacco business. 


KT&G: New, Upgraded Total Shareholder Return Plan

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>12 ETFs (9 passive and 3 active) and 1 ETN tracking the Korea Value-Up Index will start trading on the KRX on 4 November.</li>
<li>At listing, the combined AUM across the 13 products is KRW 511bn (US$370m). So not a lot of impact on the stocks in the index.</li>
<li>The expectation is that there will be a lot of money that starts to track the index after the ETF listing. Looking at Japan, that is not a success story.</li>
</ul>


12 ETFs (9 passive and 3 active) and 1 ETN tracking the Korea Value-Up Index will start trading on the KRX on 4 November.
At listing, the combined AUM across the 13 products is KRW 511bn (US$370m). So not a lot of impact on the stocks in the index.
The expectation is that there will be a lot of money that starts to track the index after the ETF listing. Looking at Japan, that is not a success story.


Korea Value-Up ETFs: Listing on 4 Nov with US$370m AUM

<ul>
<li>We provide an updated NAV analysis of Samsung C&amp;T, discuss the reduced overhang post final Lee family inheritance tax payment, and also provide further details of its Corporate Value-Up announcement. </li>
<li>Given 2025 will be the last year of major inheritance tax payment for the Lee family, there is likely to be reduced overhang associated with inheritance tax issue next year.</li>
<li>Our NAV analysis of Samsung C&amp;T suggests NAV of 39.9 trillion won or NAV per share of 224,249 won which is 45% higher from current levels.</li>
</ul>


We provide an updated NAV analysis of Samsung C&amp;T, discuss the reduced overhang post final Lee family inheritance tax payment, and also provide further details of its Corporate Value-Up announcement. 
Given 2025 will be the last year of major inheritance tax payment for the Lee family, there is likely to be reduced overhang associated with inheritance tax issue next year.
Our NAV analysis of Samsung C&amp;T suggests NAV of 39.9 trillion won or NAV per share of 224,249 won which is 45% higher from current levels.


Samsung C&T: Corporate Value-Up + Reduced Overhang Post Final Lee Family Inheritance Tax in 2025

<ul>
<li>On 29 August, the three major POSCO Group companies including POSCO Holdings announced that they plan to provide detailed explanations of their Corporate Value Up plans in 4Q 2024. </li>
<li>In general, the companies that have provided more detailed plans for their Corporate Value Up plans have done better recently. </li>
<li>However, now there are cases such as the three main POSCO Group companies whose share prices are rising just by announcing that they will provide Corporate Value Up plans later.</li>
</ul>


On 29 August, the three major POSCO Group companies including POSCO Holdings announced that they plan to provide detailed explanations of their Corporate Value Up plans in 4Q 2024. 
In general, the companies that have provided more detailed plans for their Corporate Value Up plans have done better recently. 
However, now there are cases such as the three main POSCO Group companies whose share prices are rising just by announcing that they will provide Corporate Value Up plans later.


POSCO Group Corporate Value Pre-Announcements: Trading Angle

<ul>
<li>In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in July and August 2024.</li>
<li>On average, the share buyback announcements by 46 companies represented 2% of outstanding shares.</li>
<li>Major companies that have announced share buybacks in Korea in the past two months include KT&amp;G, Mirae Asset Securities, and POSCO Holdings. </li>
</ul>


In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in July and August 2024.
On average, the share buyback announcements by 46 companies represented 2% of outstanding shares.
Major companies that have announced share buybacks in Korea in the past two months include KT&amp;G, Mirae Asset Securities, and POSCO Holdings. 


Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (July and August 2024)

South Korea

KT&G Corporation processes, produces, and sells cigarettes and other tobacco products.  The Company, through its subsidiaries, manufactures ginseng products such as red ginseng tea and herbal medicines.  KT&G is also involved in real estate development of its former factory sites.

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KT&G Corporation (033780 KS)

KT&G: New, Upgraded Total Shareholder Return Plan

KT&G announced a new shareholder return policy worth a total of 3.7 trillion won, including 2.4 trillion won in dividends and 1.3 trillion won in...

Douglas Kim

Korea Value-Up ETFs: Listing on 4 Nov with US$370m AUM

12 ETFs (9 passive and 3 active) and 1 ETN tracking the Korea Value-Up Index will start trading on the KRX on 4 November. Total assets at launch...

Brian Freitas

Samsung C&T: Corporate Value-Up + Reduced Overhang Post Final Lee Family Inheritance Tax in 2025

We provide an updated NAV analysis of Samsung C&T, discuss the reduced overhang post final Lee family inheritance tax payment, and provide further...

Douglas Kim

POSCO Group Corporate Value Pre-Announcements: Trading Angle

There could be some interesting trading angles for POSCO Holdings, POSCO Future M, and POSCO International in the next several months, ahead of the...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KT&G: New, Upgraded Total Shareholder Return Plan

KT&G announced a new shareholder return policy worth a total of 3.7 trillion won, including 2.4 trillion won in dividends and 1.3 trillion won in...

Douglas Kim

Korea Value-Up ETFs: Listing on 4 Nov with US$370m AUM

12 ETFs (9 passive and 3 active) and 1 ETN tracking the Korea Value-Up Index will start trading on the KRX on 4 November. Total assets at launch...

Brian Freitas

Samsung C&T: Corporate Value-Up + Reduced Overhang Post Final Lee Family Inheritance Tax in 2025

We provide an updated NAV analysis of Samsung C&T, discuss the reduced overhang post final Lee family inheritance tax payment, and provide further...

Douglas Kim

POSCO Group Corporate Value Pre-Announcements: Trading Angle

There could be some interesting trading angles for POSCO Holdings, POSCO Future M, and POSCO International in the next several months, ahead of the...

Douglas Kim

Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (July and August 2024)

We discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in July and August 2024.

Douglas Kim