Research on Tech Companies

Evelyn Zhang

Thematic (Sector/Industry)

<ul>
<li>Prices for Neon have been rising rapidly recently, in the short term, global semiconductor companies have 6 months inventory of the noble gas.</li>
<li>China, as a major steel producer, has mature purification technology and production process for these noble gases,  around 30% of noble gases for wafers above 8-inch  are Chinese suppliers. </li>
<li>It takes 3 to 6 months to find replacement due to the complex process of chip lithography; this crisis will accelerate the domestic substitution  of Chinese semiconductor material manufacturers.</li>
</ul>


Prices for Neon have been rising rapidly recently, in the short term, global semiconductor companies have 6 months inventory of the noble gas.
China, as a major steel producer, has mature purification technology and production process for these noble gases,  around 30% of noble gases for wafers above 8-inch  are Chinese suppliers. 
It takes 3 to 6 months to find replacement due to the complex process of chip lithography; this crisis will accelerate the domestic substitution  of Chinese semiconductor material manufacturers.


How Semiconductor Supply Chain in China Stands to Benefit from Ukraine Crisis

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Mapletree Pan Asia Commercial Trust / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> announced it would start executing on its buyback mandate (10% of H-shares out (2.047bn shares). This is potentially enormous. And absolutely praise-worthy.</li>
<li>The <a href="https://www.smartkarma.com/entities/mapletree-commercial-trust" target="_blank" data-smartkarma-citation="entities:106:1" rel="noopener">Mapletree Commercial Trust (MCT SP)</a> and <a href="https://www.smartkarma.com/entities/mapletree-north-asia-commercial-trust" target="_blank" data-smartkarma-citation="entities:5127:1" rel="noopener">Mapletree North Asia Commercial Trust (MAGIC SP)</a> prospective merger means a lot of flow. Lots and lots of flow. </li>
<li>The market was assigning ₩18bn (₩232,000/share) less for <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem (051910 KS)</a> stub ops since December 2020, when the battery business division (<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a>) was carved out.</li>
</ul>



China Mobile (941 HK) announced it would start executing on its buyback mandate (10% of H-shares out (2.047bn shares). This is potentially enormous. And absolutely praise-worthy.
The Mapletree Commercial Trust (MCT SP) and Mapletree North Asia Commercial Trust (MAGIC SP) prospective merger means a lot of flow. Lots and lots of flow. 
The market was assigning ₩18bn (₩232,000/share) less for LG Chem (051910 KS) stub ops since December 2020, when the battery business division (LG Energy Solution (LGENERGY KS)) was carved out.


Last Week in Event SPACE: Mapletree Merger, China Mobile, LG Chem, China Logistics

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On 5 January, Posco (005490 KS) announced several shareholder friendly policies including a partial cancellation of its treasury shares.</li>
<li>Following this announcement, POSCO's share price climbed 3.1% while KOSPI fell 1.2%.</li>
<li>All in all, we believe that these shareholder friendly policies (including large scale treasury shares cancellation) could help POSCO's share price to outperform the market in the next several weeks. </li>
</ul>


On 5 January, Posco (005490 KS) announced several shareholder friendly policies including a partial cancellation of its treasury shares.
Following this announcement, POSCO's share price climbed 3.1% while KOSPI fell 1.2%.
All in all, we believe that these shareholder friendly policies (including large scale treasury shares cancellation) could help POSCO's share price to outperform the market in the next several weeks. 


POSCO Announces Partial Cancellation of Treasury Shares

<ul>
<li>In the past week, Posco (005490 KS) announced that it will form a holding company structure through a physical spin-off (물적분할). </li>
<li>Many minority shareholders are opposing this move since they believe that this structure could result in the company eventually listing POSCO (steel company) and their stakes could be diluted.</li>
<li>Shareholders will finally vote on this new organizational structure on 28 January 2022. Many minority shareholders are opposing on this new deal. The final vote will likely remain very close. </li>
</ul>


In the past week, Posco (005490 KS) announced that it will form a holding company structure through a physical spin-off (물적분할). 
Many minority shareholders are opposing this move since they believe that this structure could result in the company eventually listing POSCO (steel company) and their stakes could be diluted.
Shareholders will finally vote on this new organizational structure on 28 January 2022. Many minority shareholders are opposing on this new deal. The final vote will likely remain very close. 


POSCO's Physical Spin-Off to Form POSCO Holdings: Opposed by Many Minority Shareholders

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.

<ul>
<li>There are six local sector indexes in total, which have a meaningful level of AUM and will be rebalanced in December.</li>
<li>In KOSPI200 IT, LG Corp and Samsung SDS will face a positive flow, while SDI will have an outflow on December 9. KB Financial will replace POSCO in FnGuide TOP10.</li>
<li>Samsung SDI, Enchem, and Dear U deserve the most attention the next day (the 10th). Besides Dear U, RBW is another likely addition to both K-Metaverse and Metaverse Theme.</li>
</ul>


There are six local sector indexes in total, which have a meaningful level of AUM and will be rebalanced in December.
In KOSPI200 IT, LG Corp and Samsung SDS will face a positive flow, while SDI will have an outflow on December 9. KB Financial will replace POSCO in FnGuide TOP10.
Samsung SDI, Enchem, and Dear U deserve the most attention the next day (the 10th). Besides Dear U, RBW is another likely addition to both K-Metaverse and Metaverse Theme.


Korea Sector Indexes with December Rebalancing: Passive Impact by Date

South Korea

POSCO Holdings Inc. manufactures and distributes steel products. The Company produces crude steel, hot rolled steel, cold rolled steel, stainless steel, steel plates, wire rods, galvanized steel, electrical steel, and other related products. POSCO Holdings markets its products worldwide.

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POSCO Holdings (005490 KS)

How Semiconductor Supply Chain in China Stands to Benefit from Ukraine Crisis

As the Ukraine standoff intensifies, a little-known industry is set for an upset, leaving western buyers in a lurch and Chinese producers...

Evelyn Zhang

Last Week in Event SPACE: Mapletree Merger, China Mobile, LG Chem, China Logistics

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

POSCO Announces Partial Cancellation of Treasury Shares

We believe that these shareholder friendly policies (including large scale treasury shares cancellation) could help POSCO's share price to...

Douglas Kim

POSCO's Physical Spin-Off to Form POSCO Holdings: Opposed by Many Minority Shareholders

Overall, we believe that POSCO's shares could be negatively pressured by this decision on the company to form a physical spin-off of the company.

Douglas Kim

Korea Sector Indexes with December Rebalancing: Passive Impact by Date

There are six local sector indexes in total, which have a meaningful level of AUM and will be rebalanced in December. This post tracks the passive...

Sanghyun Park

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