Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Robots need food. Its called batteries. As global investors realize the proximity of the mass adoption of humanoid robots, they increasingly recognize the importance of batteries that power these robots.</li>
<li>The stage is set for increased capital allocation into the rechargeable battery sector in Korea once again, mainly driven by the expectation of higher battery demand from humanoid/industrial robots. </li>
<li>Given the immense interest robotics related stocks, there is certainly a positive momentum on the battery related stocks that should benefit from higher demand for batteries required by humanoid robots.</li>
</ul>


Robots need food. Its called batteries. As global investors realize the proximity of the mass adoption of humanoid robots, they increasingly recognize the importance of batteries that power these robots.
The stage is set for increased capital allocation into the rechargeable battery sector in Korea once again, mainly driven by the expectation of higher battery demand from humanoid/industrial robots. 
Given the immense interest robotics related stocks, there is certainly a positive momentum on the battery related stocks that should benefit from higher demand for batteries required by humanoid robots.


Robots Need Food (Batteries) - Key Beneficiaries in Korea

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

Event-Driven

<ul>
<li>On 6 November, <a href="https://www.smartkarma.com/entities/alteogen-inc" target="_blank" data-smartkarma-citation="entities:15886:1" rel="noopener">Alteogen Inc (196170 KS)</a>'s Board approved the delisting of the stock from the KOSDAQ market and the listing on the KOSPI market. Shareholders approved on 8 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/alteogen-inc" target="_blank" data-smartkarma-citation="entities:15886:1" rel="noopener">Alteogen</a> has not yet applied to the KRX for the listing change. While the listing transfer approval had historically taken around 2-3 months, there have been no approvals recently.</li>
<li>
<a href="https://www.smartkarma.com/entities/alteogen-inc" target="_blank" data-smartkarma-citation="entities:15886:1" rel="noopener">Alteogen</a> will be deleted from the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ150 Index</a> on its last trading day and inclusion in the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI200 Index</a> will take place at the next regular rebalance (or earlier).</li>
</ul>


On 6 November, Alteogen Inc (196170 KS)'s Board approved the delisting of the stock from the KOSDAQ market and the listing on the KOSPI market. Shareholders approved on 8 December.

Alteogen has not yet applied to the KRX for the listing change. While the listing transfer approval had historically taken around 2-3 months, there have been no approvals recently.

Alteogen will be deleted from the KOSDAQ150 Index on its last trading day and inclusion in the KOSPI200 Index will take place at the next regular rebalance (or earlier).


Alteogen (196170 KS): Index Impact of KOSDAQ to KOSPI Transfer

Index Rebalance

<ul>
<li>The review period for the March rebalance ends on 31 January, the changes will be announced first week of March and implemented at the close of trading on 13 March.</li>
<li>We forecast constituent changes for the Battery, Bio, Internet and BBIG indices. Plus there will be capping changes for all indices.</li>
<li>The largest flows are expected in <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI</a>, <a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation</a>, Samsung Epis Holdings, <a href="https://www.smartkarma.com/entities/samsung-biologics-co-ltd" target="_blank" data-smartkarma-citation="entities:22932:1" rel="noopener">Samsung Biologics</a>, <a href="https://www.smartkarma.com/entities/ablbio-inc" target="_blank" data-smartkarma-citation="entities:35621:1" rel="noopener">ABLBio</a>, <a href="https://www.smartkarma.com/entities/alteogen-inc" target="_blank" data-smartkarma-citation="entities:15886:1" rel="noopener">Alteogen</a> and <a href="https://www.smartkarma.com/entities/l-f-co-ltd" target="_blank" data-smartkarma-citation="entities:14300:1" rel="noopener">L&amp;F</a>.</li>
</ul>


The review period for the March rebalance ends on 31 January, the changes will be announced first week of March and implemented at the close of trading on 13 March.
We forecast constituent changes for the Battery, Bio, Internet and BBIG indices. Plus there will be capping changes for all indices.
The largest flows are expected in Samsung SDI, SK Innovation, Samsung Epis Holdings, Samsung Biologics, ABLBio, Alteogen and L&amp;F.


KRX New Deal Index Rebalance Preview: Chunky Flows in Some Stocks

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Dec 19th. The aggregated short interest was USD11.6bn.</li>
<li>We tabulate league tables 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 HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics, NAVER, L&amp;F, Hanwha Ocean.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Dec 19th. The aggregated short interest was USD11.6bn.
We tabulate league tables 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 HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics, NAVER, L&amp;F, Hanwha Ocean.


KRX Short Interest Weekly (Dec 19th): HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics, NAVER, L&F

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Dec 12th. The aggregated holding was USD848.5bn.</li>
<li>We estimate that foreign flows to be inflows of USD1,741mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in SK Hynix, ECOPRO, Samsung Electronics, Hyundai Motor, Alteogen.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Dec 12th. The aggregated holding was USD848.5bn.
We estimate that foreign flows to be inflows of USD1,741mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in SK Hynix, ECOPRO, Samsung Electronics, Hyundai Motor, Alteogen.


KRX Foreign Holding Weekly (Dec 12th): SK Hynix, ECOPRO, Samsung Electronics, Hyundai Motor

South Korea

L&F Co., Ltd. develops and manufactures battery materials. The Company produces and sells cathode active materials, anode materials, electrolyte, separator, and other products. L&F markets its products throughout Korea.

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L&F (066970 KS)

Robots Need Food (Batteries) - Key Beneficiaries in Korea

Robots need food. Its called batteries. As investors realize the proximity of the mass adoption of humanoid robots, they increasingly recognize the...

Douglas Kim

Alteogen (196170 KS): Index Impact of KOSDAQ to KOSPI Transfer

Alteogen's shareholders have approved the KOSDAQ to KOSPI transfer. Given recent delays, the timeline could be long drawn out. KOSPI200 buying will...

Brian Freitas

KRX New Deal Index Rebalance Preview: Chunky Flows in Some Stocks

There will be multiple changes for the New Deal indices in March. The largest flows will be in Samsung SDI and SK Innovation.

Brian Freitas

KRX Short Interest Weekly (Dec 19th): HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics, NAVER, L&F

We analyzed KRX short interest report for the past week and highlighted short interest changes in HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics,...

Ke Yan, CFA, FRM

KRX Foreign Holding Weekly (Dec 12th): SK Hynix, ECOPRO, Samsung Electronics, Hyundai Motor

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in SK Hynix, ECOPRO, Samsung Electronics, Hyundai...

Ke Yan, CFA, FRM

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