Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 19 February, Samsung SDI (006400 KS) announced its plans to sell its 15.2% stake in Samsung Display (unlisted) to improve its financial health.</li>
<li>
Samsung SDI currently holds a 15.2% stake in Samsung Display with an estimated value of around 10 trillion won ($6.8 billion).
</li>
<li>In addition, various local media have mentioned that Samsung Electronics (005930 KS) could be the most likely candidate to acquire this stake.</li>
</ul>


On 19 February, Samsung SDI (006400 KS) announced its plans to sell its 15.2% stake in Samsung Display (unlisted) to improve its financial health.

Samsung SDI currently holds a 15.2% stake in Samsung Display with an estimated value of around 10 trillion won ($6.8 billion).

In addition, various local media have mentioned that Samsung Electronics (005930 KS) could be the most likely candidate to acquire this stake.


Samsung SDI: Plans to Sell Its Stake in Samsung Display (Samsung Electronics - The Likely Buyer?)

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

<ul>
<li>KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).</li>
<li>We expect up to 6 ADDs and 6 DELs for the December-2025 index rebal based on the latest available data. Same count as a month ago, but 5/12 name changes.</li>
<li>We have new charts available for all expected ADDs/DELs showing a variety of data we think worthwhile in terms of judging trade opportunity and risk. And two recommended trades.</li>
</ul>


KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
We expect up to 6 ADDs and 6 DELs for the December-2025 index rebal based on the latest available data. Same count as a month ago, but 5/12 name changes.
We have new charts available for all expected ADDs/DELs showing a variety of data we think worthwhile in terms of judging trade opportunity and risk. And two recommended trades.


[Quiddity Index Aug25] KOSPI 200 Leaderboard for Dec25 Rebal: 6 ADDs, 6 DELs, Two Recommended Trades

External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

Equity Bottom-Up

<ul><li>Samsung E&amp;A’s non-hydrocarbon orders, which totaled only W330bn in 1H25, appear poised to recover in 2H25.</li><li>Indeed, the company signed a contract for Samsung Electronics’ (SEC) Pyeongtaek P4 project in July (W909.6bn; finishing work), and SEC’s broader investment plans are likely to move forward now that legal risks involving certain group affiliates have been resolved.</li><li>Additionally, Samsung E&amp;A is awaiting bid results for Samsung Biologics’ Plant 6 project. Of note, the contract value for Samsung Biologics’ Plant 5 in Songdo was raised to around W1.9tr (vs. the initially disclosed W1.2tr). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Samsung E&amp;A’s non-hydrocarbon orders, which totaled only W330bn in 1H25, appear poised to recover in 2H25.Indeed, the company signed a contract for Samsung Electronics’ (SEC) Pyeongtaek P4 project in July (W909.6bn; finishing work), and SEC’s broader investment plans are likely to move forward now that legal risks involving certain group affiliates have been resolved.Additionally, Samsung E&amp;A is awaiting bid results for Samsung Biologics’ Plant 6 project. Of note, the contract value for Samsung Biologics’ Plant 5 in Songdo was raised to around W1.9tr (vs. the initially disclosed W1.2tr). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Samsung E&A (028050 KS/Buy)Relative Investment Appeal Highlighted; Order Wins to Resume

<ul>
<li>In this insight, we discuss a pair trade between LG Chem Ltd (051910 KS) (common) and LG Chem (051915 KS) (preferred). </li>
<li>The price ratio (LG Chem common/preferred) is now at 2.16x, which is more than 2 STD (standard deviations). Our trading strategy involves revert to the mean. </li>
<li>One of the key reasons why LG Chem (preferred)'s share price has fared much worse YTD than LG Chem (common) is due to much larger selling by the foreign investors. </li>
</ul>


In this insight, we discuss a pair trade between LG Chem Ltd (051910 KS) (common) and LG Chem (051915 KS) (preferred). 
The price ratio (LG Chem common/preferred) is now at 2.16x, which is more than 2 STD (standard deviations). Our trading strategy involves revert to the mean. 
One of the key reasons why LG Chem (preferred)'s share price has fared much worse YTD than LG Chem (common) is due to much larger selling by the foreign investors. 


A Pair Trade Between LG Chem (Common) And LG Chem (Preferred)

<ul>
<li>In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 17 February.</li>
<li>The top 10 stock picks (bi-weekly) include Hyundai G.F. Holding, Binggrae, Cheil Worldwide, Hana Tour, Samsung Electronics (pref), Samsung E&amp;A, Hyundai Elevator, KT Corp, Orion Corp, and Samsung Life Insurance. </li>
<li>We started to incorporate top negative catalysts along with positive catalysts in our top stock picks bi-weekly. Top negative catalyst is tariffs. We tried to exclude companies exposed to tariffs.</li>
</ul>


In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 17 February.
The top 10 stock picks (bi-weekly) include Hyundai G.F. Holding, Binggrae, Cheil Worldwide, Hana Tour, Samsung Electronics (pref), Samsung E&amp;A, Hyundai Elevator, KT Corp, Orion Corp, and Samsung Life Insurance. 
We started to incorporate top negative catalysts along with positive catalysts in our top stock picks bi-weekly. Top negative catalyst is tariffs. We tried to exclude companies exposed to tariffs.


Top 10 Korean Stock Picks Bi-Weekly (17 February 2025)

South Korea

Samsung E&A Co.,Ltd provides engineering construction and project management services in the domestic and international markets. The Company constructs refinery plants, petrochemical plants, gas plants, hydrocarbon upstream, power plants, metallurgy plant, industrial plants, and water treatment facilities. Samsung E&A conducts businesses across worldwide.

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Samsung E&A (028050 KS)

Samsung SDI: Plans to Sell Its Stake in Samsung Display (Samsung Electronics - The Likely Buyer?)

On 19 February, Samsung SDI (006400 KS) announced its plans to sell its 15.2% stake in Samsung Display (unlisted) to improve its financial health.

Douglas Kim

[Quiddity Index Aug25] KOSPI 200 Leaderboard for Dec25 Rebal: 6 ADDs, 6 DELs, Two Recommended Trades

When we published this 17 days ago, we recommended two trades. LONG Hyundai Autoever (307950 KS) vs SHORT Samsung SDS (018260 KS) and SHORT HDC...

Travis Lundy