Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>Silicon2 (257720 KS) has secured a third party allocated capital increase worth 300 billion won (representing 10.3% of market share) from CVC Capital private equity firm.</li>
<li>Silicon2 plans to use the capital for working capital to expand its global logistics infrastructure and increase its market share overseas.</li>
<li>The company's excellent sales growth and profit margins in the past year have been able to reduce concerns about the U.S. tariffs.</li>
</ul>


Silicon2 (257720 KS) has secured a third party allocated capital increase worth 300 billion won (representing 10.3% of market share) from CVC Capital private equity firm.
Silicon2 plans to use the capital for working capital to expand its global logistics infrastructure and increase its market share overseas.
The company's excellent sales growth and profit margins in the past year have been able to reduce concerns about the U.S. tariffs.


Silicon2: Capital Raise of 300 Billion Won from CVC Capital

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

Shenton Research

Shenton 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 Aug 7th. The aggregated short interest was USD17.3bn.</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 Samsung Elec (PREF), OCI, Samsung Electronics, Alteogen, POSCO FUTURE M.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Aug 7th. The aggregated short interest was USD17.3bn.
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 Samsung Elec (PREF), OCI, Samsung Electronics, Alteogen, POSCO FUTURE M.


KRX Short Interest Weekly (Aug 7th): Samsung Elec (PREF), OCI, Samsung Electronics, Alteogen

Cross Asset Strategy

<ul>
<li>In the past several days, one of the biggest news in Asia has been whether the Chinese government may be willing to change its stance on the zero COVID policies.</li>
<li>So far, the Chinese government has not proclaimed any official statement on ending the zero COVID policies. </li>
<li>Although we do not have a crystal ball on the Chinese government's COVID policies, there are increasing probabilities of a major loosening the COVID restrictions in China next year.</li>
</ul>


In the past several days, one of the biggest news in Asia has been whether the Chinese government may be willing to change its stance on the zero COVID policies.
So far, the Chinese government has not proclaimed any official statement on ending the zero COVID policies. 
Although we do not have a crystal ball on the Chinese government's COVID policies, there are increasing probabilities of a major loosening the COVID restrictions in China next year.


China's Zero COVID Policy: Confusions Remain on Exact Reopening Timeline - Impact on Korean Stocks

Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>We compare how a portfolio composed of our top five picks in each of our thematic reports based on datamining technical publications would have performed versus Indices</li>
<li>The size of outperformance for various periods suggests that incorporating innovation quality index that we use to rank companies can be a solid tool to generate alpha.   </li>
<li>We understand that much of the outperformance is generated by positive skew but even backing out the largest two contributors we see solid outperformance.</li>
</ul>


We compare how a portfolio composed of our top five picks in each of our thematic reports based on datamining technical publications would have performed versus Indices
The size of outperformance for various periods suggests that incorporating innovation quality index that we use to rank companies can be a solid tool to generate alpha.   
We understand that much of the outperformance is generated by positive skew but even backing out the largest two contributors we see solid outperformance.


A Look at How a Portfolio Composed of Our Top Five Innovators in Each Report Would Have Performed

<ul>
<li>We believe that there is a relatively high probability that the Korean government will lower the highest corporate tax rate bracket from 25% to 22% starting next year.</li>
<li>A 3% change in corporate tax rate should result in about 4% higher net profit for Korean companies.</li>
<li>Among the top 30 companies in Korea, we believe the companies with the biggest impact on lowering their tax rates include LG Electronics, Naver, Kakao Corp, SK Innovation, and KT&amp;G. </li>
</ul>


We believe that there is a relatively high probability that the Korean government will lower the highest corporate tax rate bracket from 25% to 22% starting next year.
A 3% change in corporate tax rate should result in about 4% higher net profit for Korean companies.
Among the top 30 companies in Korea, we believe the companies with the biggest impact on lowering their tax rates include LG Electronics, Naver, Kakao Corp, SK Innovation, and KT&amp;G. 


Lower Corporate Tax Rate in Korea Could Be an Extra Alpha Kicker

South Korea

LG H&H Co., Ltd. manufactures and distributes cosmetics. The Company produces whoo, o hui, sum 37, basic cosmetics, color cosmetics, and other related products. LG H&H also produces toothpaste, soap, detergents, healthy, personal care, and refreshing products.

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LG H&H (Pref) (051905 KS)

Silicon2: Capital Raise of 300 Billion Won from CVC Capital

Silicon2 (257720 KS) has secured a third party allocated capital increase worth 300 billion won (representing 10.3% of market share) from CVC...

Douglas Kim

KRX Short Interest Weekly (Aug 7th): Samsung Elec (PREF), OCI, Samsung Electronics, Alteogen

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samsung Elec (PREF), OCI, Samsung Electronics,...

Ke Yan, CFA, FRM

China's Zero COVID Policy: Confusions Remain on Exact Reopening Timeline - Impact on Korean Stocks

As a result of news of China potentially reopening its economy with reduced COVID restrictions sometime in 2023, the major reopening plays in Korea...

Douglas Kim

A Look at How a Portfolio Composed of Our Top Five Innovators in Each Report Would Have Performed

Our datamining reports ranks companies within thematic based on innovation quality. We see strong outperformance in a portfolio built using the top...

Pyari Menon

Lower Corporate Tax Rate in Korea Could Be an Extra Alpha Kicker

We believe that there is a relatively high probability that the Korean government will lower the highest corporate tax rate bracket from 25% to 22%...

Douglas Kim

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