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.

Event-Driven

<ul>
<li>Those non-top three constituents in the battery index get to face more substantial outflow due to LG Chem's remaining in the index. They are Posco Chemical, SKC, and Iljin Materials.</li>
<li>It is still that AfreecaTV (067160 KS) and Douzone Bizon (012510 KS) are the ones with the most significant passive impacts, +1.73x and -2.67x ADTVs, respectively. </li>
<li>LG Energy Fast Entry will be implemented on the same day. The combined inflow should rise to +0.95x ADTV, substantial enough to deserve special attention.</li>
</ul>


Those non-top three constituents in the battery index get to face more substantial outflow due to LG Chem's remaining in the index. They are Posco Chemical, SKC, and Iljin Materials.
It is still that AfreecaTV (067160 KS) and Douzone Bizon (012510 KS) are the ones with the most significant passive impacts, +1.73x and -2.67x ADTVs, respectively. 
LG Energy Fast Entry will be implemented on the same day. The combined inflow should rise to +0.95x ADTV, substantial enough to deserve special attention.


KRX K-New Deal Rebalancing Announcement: Updated Weight Adjustments & Passive Flows

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<ul>
<li>The announced changes are exactly in line with our forecasts with one change each for the Secondary Battery, Bio and Game Index. There are three changes to the Internet Index.</li>
<li>There are two changes to the BBIG Index with <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> replacing <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> and <a href="https://www.smartkarma.com/entities/afreecatv-co-ltd" target="_blank" data-smartkarma-citation="entities:20163:1" rel="noopener">AfreecaTV (067160 KS)</a> replacing <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a>. </li>
<li>The largest buying impact will be on <a href="https://www.smartkarma.com/entities/afreecatv-co-ltd" target="_blank" data-smartkarma-citation="entities:20163:1" rel="noopener">AfreecaTV (067160 KS)</a> while the largest selling impact will be on <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a>, <a href="https://www.smartkarma.com/entities/soulbrain-co-ltd-4208cf78-7fa9-4449-af35-bd0bde9d4726" target="_blank" data-smartkarma-citation="entities:35407:1" rel="noopener">Soulbrain (357780)</a> and <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a>.</li>
</ul>


The announced changes are exactly in line with our forecasts with one change each for the Secondary Battery, Bio and Game Index. There are three changes to the Internet Index.
There are two changes to the BBIG Index with LG Energy Solution (373220 KS) replacing LG Chem Ltd (051910 KS) and AfreecaTV (067160 KS) replacing Douzone Bizon (012510 KS). 
The largest buying impact will be on AfreecaTV (067160 KS) while the largest selling impact will be on Douzone Bizon (012510 KS), Soulbrain (357780) and LG Chem Ltd (051910 KS).


KRX New Deal Index Rebalance: No Surprises as LG Chem Not Deleted from Battery Index

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>In the past week, it was announced that Tving, a leading local OTT service provider in Korea, received 250 billion won in investment, valuing it at about 2 trillion won.</li>
<li>Previous to this investment, Tving was last valued at 350 billion won in July 2021. In other words, Tving's value surged by nearly 6x in the past seven months. </li>
<li>Our NAV per share of CJ ENM suggests a target price of 185,824 won, representing a 43% upside from current levels. </li>
</ul>


In the past week, it was announced that Tving, a leading local OTT service provider in Korea, received 250 billion won in investment, valuing it at about 2 trillion won.
Previous to this investment, Tving was last valued at 350 billion won in July 2021. In other words, Tving's value surged by nearly 6x in the past seven months. 
Our NAV per share of CJ ENM suggests a target price of 185,824 won, representing a 43% upside from current levels. 


Tving: Value Surges by Nearly 6x to 2 Trillion Won in 7 Months - Impact on CJ ENM

<ul>
<li>The biggest story should be LG Chem's complete deletion from the entire indexes. It's been said locally that KRX finally decided to remove LG Chem from the battery index.</li>
<li>AfreecaTV and Douzone Bizon will have the largest passive impacts, +1.72x and -3.89x ADTVs. The Chunbo and SoulBrain combo also seems in a sweet spot for a quick long/short setup.</li>
<li>LG Energy's inflow should be at least 0.33x ADTV. Yes, LG Chem's outflow deserves special attention. The combined impact is 0.6x ADTV, enough to make a splash on the price.</li>
</ul>


The biggest story should be LG Chem's complete deletion from the entire indexes. It's been said locally that KRX finally decided to remove LG Chem from the battery index.
AfreecaTV and Douzone Bizon will have the largest passive impacts, +1.72x and -3.89x ADTVs. The Chunbo and SoulBrain combo also seems in a sweet spot for a quick long/short setup.
LG Energy's inflow should be at least 0.33x ADTV. Yes, LG Chem's outflow deserves special attention. The combined impact is 0.6x ADTV, enough to make a splash on the price.


KRX K-New Deal Rebalancing: Latest Weight/Flow Update & LG Chem's Complete Deletion

<ul>
<li>In this insight, we discuss the end of the one month lock up period and more block selling ahead by major investors for LG Energy Solution in the weeks ahead.</li>
<li>There are 1.75 million shares under the one month lock-up period, representing 0.7% of outstanding shares. </li>
<li>At current price of 416,500 won, we believe there is an additional 11% downside risk to LG Energy Solution shares over the next 3-6 months (using the base case valuation).</li>
</ul>


In this insight, we discuss the end of the one month lock up period and more block selling ahead by major investors for LG Energy Solution in the weeks ahead.
There are 1.75 million shares under the one month lock-up period, representing 0.7% of outstanding shares. 
At current price of 416,500 won, we believe there is an additional 11% downside risk to LG Energy Solution shares over the next 3-6 months (using the base case valuation).


LG Energy Solution: End of the One Month Lock Up Period & More Selling Likely Ahead

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)

KRX K-New Deal Rebalancing Announcement: Updated Weight Adjustments & Passive Flows

KRX officially announced the K-New Deal rebalancing results. This post updates the estimations of weight adjustments and passive flows.

Sanghyun Park

KRX New Deal Index Rebalance: No Surprises as LG Chem Not Deleted from Battery Index

There is one change each for the Secondary Battery, Bio and Game Index. There are three changes to the Internet Index. LG Chem has not been deleted...

Brian Freitas

Tving: Value Surges by Nearly 6x to 2 Trillion Won in 7 Months - Impact on CJ ENM

Tving, a leading local OTT service provider in Korea, received 250 billion won in investment, valuing it at about 2 trillion won. up from its...

Douglas Kim

KRX K-New Deal Rebalancing: Latest Weight/Flow Update & LG Chem's Complete Deletion

This post provides the latest update on the weight adjustments and flow estimations for the KRX K-New Deal Index rebalancing.

Sanghyun Park

LG Energy Solution: End of the One Month Lock Up Period & More Selling Likely Ahead

In this insight, we discuss the end of the one month lock up period and more block selling ahead by major investors for LG Energy Solution in the...

Douglas Kim

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