Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>“In the next 50 years... we won’t give a thought to selling those [Japanese trading companies].... Japan’s record has been extraordinary.” (Warren Buffett)</li>
<li>In this insight, we provide detailed comparisons of the five major Japanese trading companies and five major Korean holdcos/trading companies. </li>
<li>Japanese trading companies have higher points for market cap, ROE, DPS increase, and shares cancellation. Korean holdcos have higher points for dividend yield, debt/equity ratio, ROIC, and valuations. </li>
</ul>


“In the next 50 years... we won’t give a thought to selling those [Japanese trading companies].... Japan’s record has been extraordinary.” (Warren Buffett)
In this insight, we provide detailed comparisons of the five major Japanese trading companies and five major Korean holdcos/trading companies. 
Japanese trading companies have higher points for market cap, ROE, DPS increase, and shares cancellation. Korean holdcos have higher points for dividend yield, debt/equity ratio, ROIC, and valuations. 


Shareholder Returns of Japanese Trading Companies Invested By Buffett Vs Top Korean Trading/Holdcos

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.

Equity Capital Markets

<ul>
<li>Macquarie might fast-track its 21.5% LG CNS stake sale, shifting from patience to action — weighing staggered sell-down vs. OTC block to limit price impact.</li>
<li>Macquarie’s well in the money — even with a deal discount, they can offload the stake, cover remaining debt, and still lock in solid upside.</li>
<li>LG CNS is flying on AI hype, but Macquarie’s post-August 5 exit risk could flip the tape fast — overhang setup worth watching vs. other local AI plays.</li>
</ul>


Macquarie might fast-track its 21.5% LG CNS stake sale, shifting from patience to action — weighing staggered sell-down vs. OTC block to limit price impact.
Macquarie’s well in the money — even with a deal discount, they can offload the stake, cover remaining debt, and still lock in solid upside.
LG CNS is flying on AI hype, but Macquarie’s post-August 5 exit risk could flip the tape fast — overhang setup worth watching vs. other local AI plays.


Aug 5 LG CNS Lockup Comes Off: Street Heating Up on Macquarie Exit Odds Surging

Event-Driven

<ul>
<li>There will be an end of lock up of 67.5% of LG CNS (064400 KS)'s shares starting 5 August (6 months post IPO).</li>
<li>The shares subject to the release are those held by the largest shareholder LG Corp (003550 KS) and Crystal Korea (Macquarie).</li>
<li>We would emphasize on positive developments on LG CNS (solid operating results and stablecoin rollout in Korea) which could be bigger factors than potential selling by the second largest shareholder.</li>
</ul>


There will be an end of lock up of 67.5% of LG CNS (064400 KS)'s shares starting 5 August (6 months post IPO).
The shares subject to the release are those held by the largest shareholder LG Corp (003550 KS) and Crystal Korea (Macquarie).
We would emphasize on positive developments on LG CNS (solid operating results and stablecoin rollout in Korea) which could be bigger factors than potential selling by the second largest shareholder.


LG CNS: End of Lockup for 67.5% of Outstanding Shares on 5 August

<ul>
<li>I’m focusing on the price action of LG Corp when LG CNS enters the KOSPI 200 IT sector, causing LG Corp to be removed from the index.</li>
<li>With LG Corp's 6% weight, its removal could trigger ETF rebalancing (TIGER), leading to an outflow exceeding twice the usual daily trading volume.</li>
<li>If LG CNS misses Fast Entry, it’ll enter in December, not June. We’ll time our short position on LG Corp to align with passive outflows during that window.</li>
</ul>


I’m focusing on the price action of LG Corp when LG CNS enters the KOSPI 200 IT sector, causing LG Corp to be removed from the index.
With LG Corp's 6% weight, its removal could trigger ETF rebalancing (TIGER), leading to an outflow exceeding twice the usual daily trading volume.
If LG CNS misses Fast Entry, it’ll enter in December, not June. We’ll time our short position on LG Corp to align with passive outflows during that window.


The Unexpected Passive Trade from the LG CNS IPO: Short LG Corp

<ul>
<li>On 6 January, LG Corp announced that it plans to purchase 250 billion won worth of LG Electronics and LG Chem from 6 January to 7 March 2025.</li>
<li>The share buybacks would represent 1.5% and 0.7% of LG Chem and LG Electronics' market cap, respectively.</li>
<li>Our base case NAV valuation analysis of LG Corp suggests implied NAV of 14.7 trillion won or NAV per share of 93,430 won, which is 25% higher than current price.</li>
</ul>


On 6 January, LG Corp announced that it plans to purchase 250 billion won worth of LG Electronics and LG Chem from 6 January to 7 March 2025.
The share buybacks would represent 1.5% and 0.7% of LG Chem and LG Electronics' market cap, respectively.
Our base case NAV valuation analysis of LG Corp suggests implied NAV of 14.7 trillion won or NAV per share of 93,430 won, which is 25% higher than current price.


LG Corp Plans to Buy 250 Billion Won of LG Chem and LG Electronics + 2 Major LG Group IPOs in 2025

South Korea

LG Corp. is a holding company, which operates subsidiaries including LG Electronics, LG Household & Health Care, LG Chem Ltd., and Dacom Corp. The Company's main business areas are electronics, chemicals, and household products manufacturing and telecommunications services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

LG Corp (003550 KS)

Shareholder Returns of Japanese Trading Companies Invested By Buffett Vs Top Korean Trading/Holdcos

In this insight, we provide detailed comparisons of the five major Japanese trading companies and five major Korean holdcos/trading companies.

Douglas Kim

Aug 5 LG CNS Lockup Comes Off: Street Heating Up on Macquarie Exit Odds Surging

The overhang now is when Macquarie exits the rest. It's year 5, so locals see little reason for them to stay long. Eyes are on digital asset...

Sanghyun Park

LG CNS: End of Lockup for 67.5% of Outstanding Shares on 5 August

After market close, Macquarie PE sold 5.6% of its 21.5% stake in LG CNS in a block deal sale at about 64,400 won (8.4% lower than closing price)....

Douglas Kim

The Unexpected Passive Trade from the LG CNS IPO: Short LG Corp

This post dives into the unexpected passive trading play triggered by the LG CNS IPO, highlighting the potential short opportunity on LG Corp as a...

Sanghyun Park

LG Corp Plans to Buy 250 Billion Won of LG Chem and LG Electronics + 2 Major LG Group IPOs in 2025

On 6 January, LG Corp announced that it plans to purchase 250 billion won worth of LG Electronics and LG Chem from 6 January to 7 March 2025.

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)