Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul><li>Coupang is perhaps the fastest growing E-commerce company in the world. </li><li>We highlight five special sauces of what makes Coupang great. </li></ul><ol><li>Ultra customer-centric, fast delivery system (vertically integrated)</li><li>Focus on repeat customers with low(est) prices </li><li>"Best-in-class" mobile app for E-commerce</li><li>Huge cash war chest with $US1 billion investment from Softbank, your ultimate<em> "Godfather"</em> venture capitalist.</li><li>Economies of Scale - Bargaining power with vendors</li></ol><ul><li>Despite its great progress, Coupang has its share of problems including recent decline in average monthly visitors, which we explain. </li><li>If you are interested in E-commerce, logistics, and retail sectors in Korea, Coupang is a must know company. </li></ul>

Coupang is perhaps the fastest growing E-commerce company in the world. We highlight five special sauces of what makes Coupang great. Ultra customer-centric, fast delivery system (vertically integrated)Focus on repeat customers with low(est) prices "Best-in-class" mobile app for E-commerceHuge cash war chest with $US1 billion investment from Softbank, your ultimate "Godfather" venture capitalist.Economies of Scale - Bargaining power with vendorsDespite its great progress, Coupang has its share of problems including recent decline in average monthly visitors, which we explain. If you are interested in E-commerce, logistics, and retail sectors in Korea, Coupang is a must know company. 

Coupang: Fastest Growing E-Commerce Company in the World

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 Mar 20th. The aggregated short interest was USD15.0bn.</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 F&amp;M Insurance, SamsungElecMech, DWEC, Samsung SDI, KOREA AEROSPACE.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Mar 20th. The aggregated short interest was USD15.0bn.
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 F&amp;M Insurance, SamsungElecMech, DWEC, Samsung SDI, KOREA AEROSPACE.


KRX Short Interest Weekly (Mar 20th): Samsung F&M Insurance, SamsungElecMech, DWEC, Samsung SDI

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, we provide 3 major fundamental criteria for screening major Korean F&amp;B companies. </li>
<li>Three major criteria include 3 years CAGR revenue growth of 5% or more, increase in net margin in 2024, and overseas sales more than 10% of total sales.</li>
<li>Of the 30 Korean F&amp;B companies mentioned in this insight, only six companies meet these criteria including Samyang Foods, Orion Corp, Hitejinro, Lotte Wellfood, Daesang Corporation, and Pulmuone.</li>
</ul>


In this insight, we provide 3 major fundamental criteria for screening major Korean F&amp;B companies. 
Three major criteria include 3 years CAGR revenue growth of 5% or more, increase in net margin in 2024, and overseas sales more than 10% of total sales.
Of the 30 Korean F&amp;B companies mentioned in this insight, only six companies meet these criteria including Samyang Foods, Orion Corp, Hitejinro, Lotte Wellfood, Daesang Corporation, and Pulmuone.


Korean F&B: Focus on Companies With Strongest Export Growth

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>The review period for the March rebalance of the KOSPI Size Indices commenced on 1 December and will end on 28 February.</li>
<li>Over halfway through the review period, we forecast 39 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 2 to SmallCap.</li>
<li>Three potential downward migrations were deleted from a global index in November. Now, four more potential downward migrations could be deleted from the same global index in February.</li>
</ul>


The review period for the March rebalance of the KOSPI Size Indices commenced on 1 December and will end on 28 February.
Over halfway through the review period, we forecast 39 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 2 to SmallCap.
Three potential downward migrations were deleted from a global index in November. Now, four more potential downward migrations could be deleted from the same global index in February.


KOSPI Size Indices: When Active Met Passive

<ul>
<li>The review period for the March rebalance of the KOSPI Size Indices commenced on 1 December and will end on 28 February.</li>
<li>A quarter of the way through the review period, we forecast 37 migrating stocks. Among new listings, 1 could be added to LargeCap, 3 to MidCap and 2 to SmallCap.</li>
<li>Four downward migrations were deleted from a global index in November. Now, three more downward migrations could be deleted from the same global index in February.</li>
</ul>


The review period for the March rebalance of the KOSPI Size Indices commenced on 1 December and will end on 28 February.
A quarter of the way through the review period, we forecast 37 migrating stocks. Among new listings, 1 could be added to LargeCap, 3 to MidCap and 2 to SmallCap.
Four downward migrations were deleted from a global index in November. Now, three more downward migrations could be deleted from the same global index in February.


KOSPI Size Indices: Overlap Between Global Passive Selling & Downward Migrations

South Korea

Namyang Dairy Products Co., Ltd. produces dairy products, such as milk, baby formula, yogurt, cheese, and ice cream.  The Company provides its products mainly to domestic market.

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Namyang Dairy Products Co (003920 KS)

Coupang: Fastest Growing E-Commerce Company in the World

Coupang is perhaps the fastest growing E-commerce company in the world. We highlight five special sauces of what makes Coupang great. Ultra...

Douglas Kim

KRX Short Interest Weekly (Mar 20th): Samsung F&M Insurance, SamsungElecMech, DWEC, Samsung SDI

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samsung F&M Insurance, SamsungElecMech, DWEC,...

Ke Yan, CFA, FRM

Korean F&B: Focus on Companies With Strongest Export Growth

We provide 3 fundamental criteria for screening Korean F&B companies including 3-years CAGR revenue growth of 5% or more, higher net margin in...

Douglas Kim

KOSPI Size Indices: When Active Met Passive

There could be 39 migrations in March. Most of the Large to Mid migrations have been, or will be, deleted from a large global index. Along with...

Brian Freitas

KOSPI Size Indices: Overlap Between Global Passive Selling & Downward Migrations

There could be 37 migrations for the KOSPI Size indices in March, plus 1 LargeCap and 3 MidCap inclusions. The MidCap to LargeCap migrations have...

Brian Freitas

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