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

Index Rebalance

<ul>
<li>There will be 16 changes for the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> at the next rebalance to be implemented at the close on 11 December.</li>
<li>Making use of their discretionary powers, the index committee has not added <a href="https://www.smartkarma.com/entities/wonik-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:6485:1" rel="noopener">Wonik Holdings Co., Ltd (030530 KS)</a>, <a href="https://www.smartkarma.com/entities/samhyun-co-ltd" target="_blank" data-smartkarma-citation="entities:40872:1" rel="noopener">Samhyun (437730 KS)</a> and <a href="https://www.smartkarma.com/entities/fadu-inc" target="_blank" data-smartkarma-citation="entities:39896:1" rel="noopener">Fadu (440110 KS)</a> to the index.</li>
<li>The adds have outperformed the deletes and the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index</a> over the last 6 months and there has been a short-term move higher too. Watch out for short covering.</li>
</ul>


There will be 16 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the next rebalance to be implemented at the close on 11 December.
Making use of their discretionary powers, the index committee has not added Wonik Holdings Co., Ltd (030530 KS), Samhyun (437730 KS) and Fadu (440110 KS) to the index.
The adds have outperformed the deletes and the KOSDAQ 150 Index over the last 6 months and there has been a short-term move higher too. Watch out for short covering.


KOSDAQ150 Index Rebalance: 16 Changes a Side; Fadu a Casualty Yet Again

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>We discuss the end of the mandatory lock-up periods for 52 stocks in Korea in December 2024, among which two are in KOSPI and 50 are in KOSDAQ.</li>
<li>Hese 52 stocks on average could be subject to further selling pressures in December and could underperform relative to the market.</li>
<li>The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in December are Jeju Air, LS Materials, and Toolgen.</li>
</ul>


We discuss the end of the mandatory lock-up periods for 52 stocks in Korea in December 2024, among which two are in KOSPI and 50 are in KOSDAQ.
Hese 52 stocks on average could be subject to further selling pressures in December and could underperform relative to the market.
The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in December are Jeju Air, LS Materials, and Toolgen.


End of Mandatory Lock-Up Periods for 52 Companies in Korea in December 2024

Equity Capital Markets

<ul>
<li>To value Aproele, we used an 18.2x P/E multiple based on our 2021 net profit estimate of 8.9 billion won. The valuation multiple of 18.2x was derived from an average of the comps' P/E multiples from 2019 to 2021.</li>
<li><div class="content-highlight">
<strong>This resulted in an implied market cap of 161 billion won or 21,910 won per share.</strong> The IPO price range is from 19,000 won to 21,600 won so our target price is close to the high end of the IPO price range. <strong>Therefore, we would not take this IPO deal, given the lack of enough upside. </strong>
</div></li>
<li>Aproele is a rechargeable battery equipment maker in Korea. Aproele has focused on the power conversion and circuit technologies for the rechargeable battery equipment. The company's main product is the high-temperature pressurized charger, which is a device that can improve the performance of the battery produced by maximizing the charging/discharging efficiency of the EV batteries.</li>
</ul>


To value Aproele, we used an 18.2x P/E multiple based on our 2021 net profit estimate of 8.9 billion won. The valuation multiple of 18.2x was derived from an average of the comps' P/E multiples from 2019 to 2021.

This resulted in an implied market cap of 161 billion won or 21,910 won per share. The IPO price range is from 19,000 won to 21,600 won so our target price is close to the high end of the IPO price range. Therefore, we would not take this IPO deal, given the lack of enough upside. 

Aproele is a rechargeable battery equipment maker in Korea. Aproele has focused on the power conversion and circuit technologies for the rechargeable battery equipment. The company's main product is the high-temperature pressurized charger, which is a device that can improve the performance of the battery produced by maximizing the charging/discharging efficiency of the EV batteries.


<p>In this insight, we provide a valuation analysis of <a href="https://www.smartkarma.com/entities/saltlux" target="_blank" data-smartkarma-citation="entities:29011:1" rel="noopener">Saltlux (SLTX KS)</a>. In addition, we provide additional fundamental details of the company, competitors, as well as the market outlook for AI &amp; Big Data services.</p><p>In our view, Saltlux has one of the best technologies in the AI/Big Data sector in Korea. In terms of business model, it is closer to Mindslab and Daumsoft which are privately held. The fact that Saltlux has larger sales than these two competitors is impressive. We think there is likely to be a big acquisition premium on Saltlux going forward.</p><div class="content-highlight"><p>In terms of valuation multiples, we think that a 10x P/S, using 2019 sales (which is 10% premium to Laon People) is reasonable for Saltlux, which would suggest an implied market cap of 184 billion won or 36,000 won, which is 20% above the high end of the IPO price of 30,000 won. As such, we have a positive view of the Saltlux IPO. We are also adding Saltlux to our model portfolio. </p></div>

In this insight, we provide a valuation analysis of Saltlux (SLTX KS). In addition, we provide additional fundamental details of the company, competitors, as well as the market outlook for AI &amp; Big Data services.In our view, Saltlux has one of the best technologies in the AI/Big Data sector in Korea. In terms of business model, it is closer to Mindslab and Daumsoft which are privately held. The fact that Saltlux has larger sales than these two competitors is impressive. We think there is likely to be a big acquisition premium on Saltlux going forward.In terms of valuation multiples, we think that a 10x P/S, using 2019 sales (which is 10% premium to Laon People) is reasonable for Saltlux, which would suggest an implied market cap of 184 billion won or 36,000 won, which is 20% above the high end of the IPO price of 30,000 won. As such, we have a positive view of the Saltlux IPO. We are also adding Saltlux to our model portfolio. 

<ul>
<li>A company called Saltlux is getting ready for an IPO in the Korean stock market in July. Established in 2000, Saltlux has been one of the leading companies in the field of <strong>AI and Big Data</strong> in Korea in the past 20 years. The company launched an <strong>AI platform called ADAM</strong> in 2016. </li>
<li>The IPO price range is from 24,000 won to 30,000 won. According to the bankers' valuation, the expected market cap after the IPO is from 123 billion won to 153 billion won. The company expects to raise from $14.6 million to $18.3 million in this IPO. </li>
<li>
<strong>How the Bankers Priced the IPO - </strong>The bankers used five comps including three Korean companies (Wise ITech, Laon People, and Namu Tech) and two U.S. companies (Akamai Technologies and Citrix Systems). Applying the average comps P/E of 31.7x results in an implied price of 37,685 won. After applying an additional IPO discount of 20.39% - 36.31%, this results in an IPO price range of 24,000 won to 30,000 won (123 billion won to 153 billion won in implied market cap). </li>
</ul>


A company called Saltlux is getting ready for an IPO in the Korean stock market in July. Established in 2000, Saltlux has been one of the leading companies in the field of AI and Big Data in Korea in the past 20 years. The company launched an AI platform called ADAM in 2016. 
The IPO price range is from 24,000 won to 30,000 won. According to the bankers' valuation, the expected market cap after the IPO is from 123 billion won to 153 billion won. The company expects to raise from $14.6 million to $18.3 million in this IPO. 

How the Bankers Priced the IPO - The bankers used five comps including three Korean companies (Wise ITech, Laon People, and Namu Tech) and two U.S. companies (Akamai Technologies and Citrix Systems). Applying the average comps P/E of 31.7x results in an implied price of 37,685 won. After applying an additional IPO discount of 20.39% - 36.31%, this results in an IPO price range of 24,000 won to 30,000 won (123 billion won to 153 billion won in implied market cap). 


Saltlux IPO Preview: A Legit Player in the AI/Big Data Sector in Korea

South Korea

Saltlux.Inc operates system software businesses. The Company develops big data processing systems, big data computing systems, and other artificial intelligence systems. Saltlux conducts business in Korea.

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Saltlux (304100 KS)

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In this insight, we provide a valuation analysis of Saltlux (SLTX KS). In addition, we provide additional fundamental details of the company,...

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A company called Saltlux is getting ready for an IPO in the Korean stock market in July. Established in 2000, Saltlux has been one of the leading...

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