Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>According to Maekyung Business Daily, Hanwha Aerospace is pursuing the acquisition of the defense business of Poongsan Corp, which is the only comprehensive ammunition manufacturer in Korea. </li>
<li>In my view, the probability of FTC providing approval of this deal is rather high (80%+) mainly because the ammunition business is not a local but a global business. </li>
<li>Receiving the required consent from the Poongsan's shareholders is likely to be a lot more challenging, especially if the deal structure involves separating the defense business and selling it afterwards.</li>
</ul>


According to Maekyung Business Daily, Hanwha Aerospace is pursuing the acquisition of the defense business of Poongsan Corp, which is the only comprehensive ammunition manufacturer in Korea. 
In my view, the probability of FTC providing approval of this deal is rather high (80%+) mainly because the ammunition business is not a local but a global business. 
Receiving the required consent from the Poongsan's shareholders is likely to be a lot more challenging, especially if the deal structure involves separating the defense business and selling it afterwards.


Hanwha Aerospace to Acquire Poongsan’s Munitions Business for 1.5 Trillion Won?

Cross Asset Strategy

<ul>
<li>In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (1 to 15 August 2025).</li>
<li>Hanwha Ocean (042660 KS) is up 46% in the past two weeks. It is the top performing stock in KOSPI in this period, as one of the top Korean shipbuilders. </li>
<li>Top 10 picks in this bi-weekly include Kangwon Land, Hanil Cement, LG Uplus, Hyundai Elevator, Samsung Electronics, Hyundai Rotem, KT&amp;G, HD Hyundai Heavy Industries, SM Entertainment, and LG Energy Solution. </li>
</ul>


In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (1 to 15 August 2025).
Hanwha Ocean (042660 KS) is up 46% in the past two weeks. It is the top performing stock in KOSPI in this period, as one of the top Korean shipbuilders. 
Top 10 picks in this bi-weekly include Kangwon Land, Hanil Cement, LG Uplus, Hyundai Elevator, Samsung Electronics, Hyundai Rotem, KT&amp;G, HD Hyundai Heavy Industries, SM Entertainment, and LG Energy Solution. 


Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (1 to 15 August 2025)

Korea Aerospace Industries / Event-Driven

<ul>
<li>Hanwha Aerospace (012450 KS) announced that it acquired additional 100,000 shares (0.1%) of Korea Aerospace Industries (047810 KS), raising Hanwha Group's stake in KAI to 5.09% (from 4.99% previously). </li>
<li>Hanwha Aerospace plans to continue purchasing KAI shares by the end of this year, investing 500 billion won (representing about 2.85% of outstanding shares). </li>
<li>This is likely to have a greater beneficial impact on KAI because there will be more buying of its KAI by Hanwha Aerospace, boosting KAI's share price. </li>
</ul>


Hanwha Aerospace (012450 KS) announced that it acquired additional 100,000 shares (0.1%) of Korea Aerospace Industries (047810 KS), raising Hanwha Group's stake in KAI to 5.09% (from 4.99% previously). 
Hanwha Aerospace plans to continue purchasing KAI shares by the end of this year, investing 500 billion won (representing about 2.85% of outstanding shares). 
This is likely to have a greater beneficial impact on KAI because there will be more buying of its KAI by Hanwha Aerospace, boosting KAI's share price. 


Hanwha Aerospace: To Purchase 500 Billion Won Worth of More KAI Shares: Step 2 of Privatization?

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>If you like <a href="https://www.smartkarma.com/entities/toyota-industries-corp" target="_blank" data-smartkarma-citation="entities:4500:1" rel="noopener">Toyota Industries (6201 JP)</a>'s Appraisal Rights case, buy. If a LO investor who held until now and bullish the market, sell now and replace your beta.</li>
<li>Current NAV levels for <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus NV (PRX NA)</a> are somewhat depressed. To a lesser extent, so is the implied stub (netting off the stake in <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>).</li>
<li>China has established itself as the global EVs benchmark. But  expect increased competition, overcapacity, and in turn, profit squeeze. <a href="https://www.smartkarma.com/entities/dongfeng-motor-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:910:1" rel="noopener">Dongfeng Motor (489 HK)</a>is trading full ahead of VOYAH's spin-off.</li>
</ul>


If you like Toyota Industries (6201 JP)'s Appraisal Rights case, buy. If a LO investor who held until now and bullish the market, sell now and replace your beta.
Current NAV levels for Prosus NV (PRX NA) are somewhat depressed. To a lesser extent, so is the implied stub (netting off the stake in Tencent (700 HK)).
China has established itself as the global EVs benchmark. But  expect increased competition, overcapacity, and in turn, profit squeeze. Dongfeng Motor (489 HK)is trading full ahead of VOYAH's spin-off.


Last Week In Event SPACE: Toyota Inds., Prosus/Tencent, Dongfeng Motor, WH Group

<ul>
<li>Several local media outlets have mentioned that Poongsan Corp (103140 KS) (market cap of 3.1 trillion won) may be up for sale.</li>
<li>Major domestic defense companies including Hanwha Aerospace (012450 KS), LIG Nex1 Co (079550 KS), and Hyundai Rotem Company (064350 KS) are potential candidates to purchase Poongsan's defense business. </li>
<li>Our NAV analysis of Poongsan Holdings suggests implied NAV per share of 51,094 won, representing an 35.5% upside versus current price.</li>
</ul>


Several local media outlets have mentioned that Poongsan Corp (103140 KS) (market cap of 3.1 trillion won) may be up for sale.
Major domestic defense companies including Hanwha Aerospace (012450 KS), LIG Nex1 Co (079550 KS), and Hyundai Rotem Company (064350 KS) are potential candidates to purchase Poongsan's defense business. 
Our NAV analysis of Poongsan Holdings suggests implied NAV per share of 51,094 won, representing an 35.5% upside versus current price.


Poongsan Holdings NAV Analysis & A Potential Sale of Controlling Stake in Poongsan Corp?

South Korea

Poongsan Corporation manufactures non-ferrous metal and defense-related products.  The Company also makes coin blanks, cans, stainless steel strips, lead frame alloys, tin plated strips, bars, and rods & wires.  It also produces precision products such as lead frames for semiconductors, machinery, and dies & gauges.

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Poongsan Corp (103140 KS)

Hanwha Aerospace to Acquire Poongsan’s Munitions Business for 1.5 Trillion Won?

According to Maekyung Business Daily, Hanwha Aerospace is pursuing the acquisition of the defense business of Poongsan Corp, which is the only...

Douglas Kim

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (1 to 15 August 2025)

Top 10 picks in this bi-weekly include Kangwon Land, Hanil Cement, LG Uplus, Hyundai Elevator, Samsung Electronics, Hyundai Rotem, KT&G, HD HHI, SM...

Douglas Kim

Hanwha Aerospace: To Purchase 500 Billion Won Worth of More KAI Shares: Step 2 of Privatization?

Hanwha Aerospace plans to continue purchasing KAI shares by the end of this year, investing 500 billion won (representing about 2.85% of...

Douglas Kim

Last Week In Event SPACE: Toyota Inds., Prosus/Tencent, Dongfeng Motor, WH Group

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Poongsan Holdings NAV Analysis & A Potential Sale of Controlling Stake in Poongsan Corp?

Several local media outlets have mentioned that Poongsan Corp (103140 KS) (market cap of 3.1 trillion won) may be up for sale.

Douglas Kim

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