Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>Honda and GM announced today that they would further expand their partnership on EV technologies.</li>
<li>A new EV series will be produced for North America by 2027 and the two companies will collaborate on advanced battery technologies.</li>
<li>This is an incremental positive for Honda and GM but the array of partnerships Honda is creating points to a lack of decisiveness on its part.</li>
</ul>


Honda and GM announced today that they would further expand their partnership on EV technologies.
A new EV series will be produced for North America by 2027 and the two companies will collaborate on advanced battery technologies.
This is an incremental positive for Honda and GM but the array of partnerships Honda is creating points to a lack of decisiveness on its part.


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>Nine constituents will likely face an increase in the float rate: five stocks for the sale of the majority shareholder's shares and four names for the IPO lockup release.</li>
<li>Kakao Bank (6.35x), LG Corp (003550 KS) (2.62x), Krafton (2.09x), and Woori Financial Group (316140 KS) (1.74x) are expected to have the most significant impact.</li>
<li>In general, float rate changes show price movement by passive flow similar to new changes (adds/deletes). So, we need to consider gradually building up positions two months before the rebalancing.</li>
</ul>


Nine constituents will likely face an increase in the float rate: five stocks for the sale of the majority shareholder's shares and four names for the IPO lockup release.
Kakao Bank (6.35x), LG Corp (003550 KS) (2.62x), Krafton (2.09x), and Woori Financial Group (316140 KS) (1.74x) are expected to have the most significant impact.
In general, float rate changes show price movement by passive flow similar to new changes (adds/deletes). So, we need to consider gradually building up positions two months before the rebalancing.


KOSPI 200 Index Rebalancing: Constituents Subject to Float Rate Increase

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>We discuss the end of the three months lock-up period, higher short selling of LG Energy Solution as well as the recent JV formation with Stellantis.</li>
<li>At the current price of 439,000 won, we believe there is a 15% downside risk to LG Energy Solution shares over the next 3-6 months.</li>
<li>LGES's share price has rallied by 8% since the news about the JV with Stellantis have been announced but we believe this rally is likely to be short-lived. </li>
</ul>


We discuss the end of the three months lock-up period, higher short selling of LG Energy Solution as well as the recent JV formation with Stellantis.
At the current price of 439,000 won, we believe there is a 15% downside risk to LG Energy Solution shares over the next 3-6 months.
LGES's share price has rallied by 8% since the news about the JV with Stellantis have been announced but we believe this rally is likely to be short-lived. 


LG Energy Solution: End of the 3 Months Lock Up Period, Higher Short Selling, & JV with Stellantis

<ul>
<li>The Nikkei reported today on rumblings between Korean battery suppliers and their American customer OEMs. </li>
<li>The crux of the dispute is about technology access and risks of technology leakage which are normal in the scheme of things.</li>
<li>However, expiring LFP patents which we have flagged are likely to result in this dispute going badly for battery suppliers.</li>
</ul>


The Nikkei reported today on rumblings between Korean battery suppliers and their American customer OEMs. 
The crux of the dispute is about technology access and risks of technology leakage which are normal in the scheme of things.
However, expiring LFP patents which we have flagged are likely to result in this dispute going badly for battery suppliers.


LG Energy – LFP Disruption Could Mean Marginalisation Within Big 3

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Hanil Cement Co Ltd/New / Index Rebalance

<ul>
<li>Over 3/4th of the way through the review period for the June rebalance, we see 7 potential changes to the KOSPI200 Index. Most are high probability changes.</li>
<li>Potential inclusions: F&amp;F (383220 KS), SD Biosensor (137310 KS), Meritz Fire &amp; Marine (000060 KS), Iljin Hysolus (271940 KS), K Car (381970 KS), Hanil Cement (300720 KS), Hana Tour (039130).</li>
<li>Potential deletions: Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Nexen Tire (002350 KS), Hyundai Home Shopping (057050 KS), Cuckoo Homesys (284740 KS), Sk Discovery (006120), Grand Korea Leisure (114090).</li>
</ul>


Over 3/4th of the way through the review period for the June rebalance, we see 7 potential changes to the KOSPI200 Index. Most are high probability changes.
Potential inclusions: F&amp;F (383220 KS), SD Biosensor (137310 KS), Meritz Fire &amp; Marine (000060 KS), Iljin Hysolus (271940 KS), K Car (381970 KS), Hanil Cement (300720 KS), Hana Tour (039130).
Potential deletions: Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Nexen Tire (002350 KS), Hyundai Home Shopping (057050 KS), Cuckoo Homesys (284740 KS), Sk Discovery (006120), Grand Korea Leisure (114090).


KOSPI200 June Index Rebalance Preview: 7 Changes as Adds Outperform Deletes

South Korea

LG Energy Solution produces and sells batteries. The Company manufactures and sells automobile batteries, small batteries, energy storage system batteries, and other products. LG Energy Solution markets its products worldwide.

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LG Energy Solution (373220 KS)

Honda - Expanding EV Partnership With GM

The expansion of the Honda-GM EV partnership is an incremental positive for both players but the array of partnerships Honda is creating points to...

Mio Kato

KOSPI 200 Index Rebalancing: Constituents Subject to Float Rate Increase

This post investigates those among the KOSPI 200 constituents, which will face an increase in the float rate, thereby attracting a meaningful level...

Sanghyun Park

LG Energy Solution: End of the 3 Months Lock Up Period, Higher Short Selling, & JV with Stellantis

We discuss the end of the three months lock-up period, higher short selling of LG Energy Solution as well as the recent JV formation with Stellantis.

Douglas Kim

LG Energy – LFP Disruption Could Mean Marginalisation Within Big 3

A Nikkei report on intensifying negotiations between battery suppliers and the US Big 3 points to the potential for LFP technology to drive...

Mio Kato

KOSPI200 June Index Rebalance Preview: 7 Changes as Adds Outperform Deletes

With just over a month to go in the review period, we see 7 potential changes to the KOSPI200 Index. Most changes are high probability and the...

Brian Freitas

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