Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Thematic (Sector/Industry)

For now, CJ officially denied to sell CJ O Shopping (035760). Now, the question is why the talk of possible sale of CJ O Shopping came out in the first place. Despite CJ’s denial, it seems to be true that CJ management made some actions for possible sale of CJ O Shopping. Yes, whether CJ is really serious about selling CJ O Shopping remains uncertain at this moment. But what seems certain is that CJ management and Chairman Lee Jay-hyun appear to be quite determined to concentrate their resources…

For now, CJ officially denied to sell CJ O Shopping (035760). Now, the question is why the talk of possible sale of CJ O Shopping came out in the first place. Despite CJ’s denial, it seems to be true that CJ management made some actions for possible sale of CJ O Shopping. Yes, whether CJ is really serious about selling CJ O Shopping remains uncertain at this moment. But what seems certain is that CJ management and Chairman Lee Jay-hyun appear to be quite determined to concentrate their resources…

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/s-t-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:16022:1" rel="noopener">SNT Holdings (036530 KS)</a> has lifted its stake in <a href="https://www.smartkarma.com/entities/smec-co-ltd" target="_blank" data-smartkarma-citation="entities:1649:1" rel="noopener">SMEC (099440 KS)</a>, South Korea's second-largest machine tool manufacturer, to 13.65% from 8.19%. SNT's chairman also holds 6.55%, or 20.2% all-in.</li>
<li>Concurrent with the stake increase, SNT formally declared its equity holding in SMEC to  “management participation” from "simple investment". </li>
<li>The move could simply be one of SNT aligning its interests with SMEC's management. But more likely, it's a precursor to a potential hostile takeover. SMEC is now up ~40%.</li>
</ul>



SNT Holdings (036530 KS) has lifted its stake in SMEC (099440 KS), South Korea's second-largest machine tool manufacturer, to 13.65% from 8.19%. SNT's chairman also holds 6.55%, or 20.2% all-in.
Concurrent with the stake increase, SNT formally declared its equity holding in SMEC to  “management participation” from "simple investment". 
The move could simply be one of SNT aligning its interests with SMEC's management. But more likely, it's a precursor to a potential hostile takeover. SMEC is now up ~40%.


SMEC (099440 KS) Pops As SNT Shifts Its Intent

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (15 to 29 August 2025).</li>
<li>Shipbuilding and rechargeable battery were two of the best performing sectors in the past two weeks.</li>
<li>Top 10 picks in this bi-weekly include Samsung Electronics, LG Uplus, Hyundai Elevator, KT&amp;G, KEPCO E&amp;C, Dentium, NCsoft, JYP Entertainment, LG Chem, and Ecopro BM. </li>
</ul>


In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (15 to 29 August 2025).
Shipbuilding and rechargeable battery were two of the best performing sectors in the past two weeks.
Top 10 picks in this bi-weekly include Samsung Electronics, LG Uplus, Hyundai Elevator, KT&amp;G, KEPCO E&amp;C, Dentium, NCsoft, JYP Entertainment, LG Chem, and Ecopro BM. 


Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (15 to 29 August 2025)

<ul>
<li>JYP Entertainment reported an explosive growth in sales and profits in 2Q 2025. It achieved sales of 215.8 billion won (up 125.5% YoY and 6.4% higher than consensus).</li>
<li>JYP also had an operating profit of 52.9 billion won (up 466.5% YoY and 23.3% higher than consensus in 2Q 2025.</li>
<li> JYP's much better than expected results in 2Q 2025 confirms its ability to monetize the growing popularity of K-Pop globally.  </li>
</ul>


JYP Entertainment reported an explosive growth in sales and profits in 2Q 2025. It achieved sales of 215.8 billion won (up 125.5% YoY and 6.4% higher than consensus).
JYP also had an operating profit of 52.9 billion won (up 466.5% YoY and 23.3% higher than consensus in 2Q 2025.
 JYP's much better than expected results in 2Q 2025 confirms its ability to monetize the growing popularity of K-Pop globally.  


JYP Entertainment: Explosive Earnings Growth in 2Q 2025

<ul>
<li>In this insight, we discuss a pair trade between SM Entertainment Co (041510 KS) (long) vs HYBE (352820 KS) (short).</li>
<li>There is an increasing probability that HYBE's founder Bang Si-hyuk could face some jail time in which case there could be some vacuum of management leadership at HYBE.</li>
<li>Despite its recent outperformance, SM Entertainment's valuation is much more attractive than HYBE (SM is trading at 9.6x EV/EBITDA vs 18.5x for HYBE in 2026).</li>
</ul>


In this insight, we discuss a pair trade between SM Entertainment Co (041510 KS) (long) vs HYBE (352820 KS) (short).
There is an increasing probability that HYBE's founder Bang Si-hyuk could face some jail time in which case there could be some vacuum of management leadership at HYBE.
Despite its recent outperformance, SM Entertainment's valuation is much more attractive than HYBE (SM is trading at 9.6x EV/EBITDA vs 18.5x for HYBE in 2026).


A Pair Trade Between SM Entertainment (Long) Vs HYBE (Short)

South Korea

S.M.Entertainment Co. plans, produces, promotes, and markets Korean rock and roll music in several formats, such as compact discs (CD), concert tours, television productions, and music videos.  The Company also operates artist management business as well as licensing and copyright business from the company's music records.

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S.M.Entertainment Co (041510 KS)

CJ O Shopping (035760) For Sale? Why?

For now, CJ officially denied to sell CJ O Shopping (035760). Now, the question is why the talk of possible sale of CJ O Shopping came out in the...

Sanghyun Park

SMEC (099440 KS) Pops As SNT Shifts Its Intent

I wouldn't chase it here. SMEC is trading rich to a key listed peer; and to precedent takeover metrics. Look to enter on any material weakness. ...

David Blennerhassett

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (15 to 29 August 2025)

Top 10 picks in this bi-weekly include Samsung Electronics, LG Uplus, Hyundai Elevator, KT&G, KEPCO E&C, Dentium, NCsoft, JYP Entertainment, LG...

Douglas Kim

JYP Entertainment: Explosive Earnings Growth in 2Q 2025

JYP Entertainment reported an explosive growth in sales and profits in 2Q 2025. It achieved sales of 215.8 billion won (up 125.5% YoY and 6.4%...

Douglas Kim

A Pair Trade Between SM Entertainment (Long) Vs HYBE (Short)

In this insight, we discuss a pair trade between SM Entertainment (long) vs HYBE (short). There is an increasing probability that HYBE's founder...

Douglas Kim

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