Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<p>It was announced today that Samsung's Lee Jae-Yong will get out of jail as the Korean government will release him on parole this week after he spent 18 months in prison. The total original sentence time was for 30 months so Lee will no longer need to serve the remaining one year of jail time. Lee joins 800+ other convicts who will be released from various prisons in Korea on Friday. </p><p>In our view, this could <strong>accelerate</strong> some of Samsung's major investment plans globally and could also have a positive impact on the Samsung Group companies. Lee Jae-Yong joins a long-list of Korean chaebol family members that have served some time in prison. </p><div class="content-highlight">
<p>Overall, we believe that there could be more investors' interest in Samsung C&amp;T with the release of Lee Jae-Yong from jail. Although he remains a figurehead, the persistent negative press on him will likely be relieved and there could be more pressure to improve various ESG metrics of the Samsung Group companies even further. As such, we believe this will have a positive impact on the Samsung Group companies, especially on Samsung C&amp;T. </p>
<p>Our <strong>base case NAV</strong> valuation of Samsung C&amp;T is 202,593 won per share, representing 42.2% higher than current share price. In our base case valuation, we used the current market cap/prices of its ownership in major affiliates including Samsung Electronics, Samsung Biologics, and Samsung Life Insurance. We also used a 40% holdco discount in our valuations. </p>
</div>

It was announced today that Samsung's Lee Jae-Yong will get out of jail as the Korean government will release him on parole this week after he spent 18 months in prison. The total original sentence time was for 30 months so Lee will no longer need to serve the remaining one year of jail time. Lee joins 800+ other convicts who will be released from various prisons in Korea on Friday. In our view, this could accelerate some of Samsung's major investment plans globally and could also have a positive impact on the Samsung Group companies. Lee Jae-Yong joins a long-list of Korean chaebol family members that have served some time in prison. 
Overall, we believe that there could be more investors' interest in Samsung C&amp;T with the release of Lee Jae-Yong from jail. Although he remains a figurehead, the persistent negative press on him will likely be relieved and there could be more pressure to improve various ESG metrics of the Samsung Group companies even further. As such, we believe this will have a positive impact on the Samsung Group companies, especially on Samsung C&amp;T. 
Our base case NAV valuation of Samsung C&amp;T is 202,593 won per share, representing 42.2% higher than current share price. In our base case valuation, we used the current market cap/prices of its ownership in major affiliates including Samsung Electronics, Samsung Biologics, and Samsung Life Insurance. We also used a 40% holdco discount in our valuations. 


Samsung's Lee Jae-Yong Gets Out of Jail (Again) & NAV Analysis of Samsung C&T

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/country-garden-services-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services Holdings (6098 HK)</a> and <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a>, <a href="https://www.smartkarma.com/entities/xinjiang-goldwind-science-technology-h" target="_blank" data-smartkarma-citation="entities:10112:1" rel="noopener">Xinjiang Goldwind Science &amp; Technology H (2208 HK)</a>, <a href="https://www.smartkarma.com/entities/shanghai-fosun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:8045:1" rel="noopener">Shanghai Fosun Pharmaceutical (Group) (2196 HK)</a> and <a href="https://www.smartkarma.com/entities/new-oriental-education-technology-group" target="_blank" data-smartkarma-citation="entities:32210:1" rel="noopener">New Oriental Education &amp; Technology Group (9901 HK)</a>. Shorts increased in the Consumer Discretionary, Financials, Real Estate, Communication Services and Industrial sectors.</p></div><div><p>In Japan, stocks increased on <a href="https://www.smartkarma.com/entities/daito-trust-construct-co-ltd" target="_blank" data-smartkarma-citation="entities:10503:1" rel="noopener">Daito Trust Construct (1878 JP)</a>, <a href="https://www.smartkarma.com/entities/money-forward-inc" target="_blank" data-smartkarma-citation="entities:25919:1" rel="noopener">Money Forward (3994 JP)</a>, <a href="https://www.smartkarma.com/entities/shimizu-corp" target="_blank" data-smartkarma-citation="entities:8530:1" rel="noopener">Shimizu Corp (1803 JP)</a>, <a href="https://www.smartkarma.com/entities/seiko-epson-corp" target="_blank" data-smartkarma-citation="entities:16793:1" rel="noopener">Seiko Epson (6724 JP)</a> and <a href="https://www.smartkarma.com/entities/giftee-inc" target="_blank" data-smartkarma-citation="entities:28280:1" rel="noopener">giftee Inc (4449 JP)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/kirin-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:16977:1" rel="noopener">Kirin Holdings (2503 JP)</a>, <a href="https://www.smartkarma.com/entities/base-inc" target="_blank" data-smartkarma-citation="entities:28353:1" rel="noopener">BASE Inc (4477 JP)</a>, <a href="https://www.smartkarma.com/entities/cyberagent-inc" target="_blank" data-smartkarma-citation="entities:8197:1" rel="noopener">CyberAgent Inc (4751 JP)</a>, <a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a> and <a href="https://www.smartkarma.com/entities/industrial-infrastructure" target="_blank" data-smartkarma-citation="entities:3822:1" rel="noopener">Industrial &amp; Infrastructure Fund Investment (3249 JP)</a>. Shorts increased in the Utilities sector while decreasing in the Consumer Staples sector.</p></div><div><p>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a>, <a href="https://www.smartkarma.com/entities/oci-co-ltd" target="_blank" data-smartkarma-citation="entities:1904:1" rel="noopener">Oci Co Ltd (010060 KS)</a>, <a href="https://www.smartkarma.com/entities/amorepacific-corp" target="_blank" data-smartkarma-citation="entities:20854:1" rel="noopener">Amorepacific Corp (090430 KS)</a>, <a href="https://www.smartkarma.com/entities/kumho-petro-chemical-co-ltd" target="_blank" data-smartkarma-citation="entities:2014:1" rel="noopener">Kumho Petro Chemical (011780 KS)</a> and <a href="https://www.smartkarma.com/entities/lg-display-co-ltd" target="_blank" data-smartkarma-citation="entities:7145:1" rel="noopener">LG Display (034220 KS)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao Corp (035720 KS)</a>, <a href="https://www.smartkarma.com/entities/doosan-heavy-industries-construction" target="_blank" data-smartkarma-citation="entities:7389:1" rel="noopener">Doosan Heavy Industries &amp; Construction (034020 KS)</a>, <a href="https://www.smartkarma.com/entities/hyundai-rotem-company" target="_blank" data-smartkarma-citation="entities:1554:1" rel="noopener">Hyundai Rotem Company (064350 KS)</a> and <a href="https://www.smartkarma.com/entities/lg-household-health-care" target="_blank" data-smartkarma-citation="entities:6501:1" rel="noopener">LG Household &amp; Health Care (051900 KS)</a>. </p></div><div><p>In Taiwan, shorts increased on <a href="https://www.smartkarma.com/entities/innolux-corp" target="_blank" data-smartkarma-citation="entities:4509:1" rel="noopener">Innolux Corp (3481 TT)</a>, <a href="https://www.smartkarma.com/entities/asustek-computer-inc" target="_blank" data-smartkarma-citation="entities:13002:1" rel="noopener">Asustek Computer (2357 TT)</a>, <a href="https://www.smartkarma.com/entities/delta-electronics-inc" target="_blank" data-smartkarma-citation="entities:12688:1" rel="noopener">Delta Electronics (2308 TT)</a>, <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a> and <a href="https://www.smartkarma.com/entities/asia-cement-corp" target="_blank" data-smartkarma-citation="entities:15350:1" rel="noopener">Asia Cement (1102 TT)</a> while shorts covered on <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a>, <a href="https://www.smartkarma.com/entities/quanta-computer-inc" target="_blank" data-smartkarma-citation="entities:2754:1" rel="noopener">Quanta Computer (2382 TT)</a>, <a href="https://www.smartkarma.com/entities/china-steel-corp" target="_blank" data-smartkarma-citation="entities:962:1" rel="noopener">China Steel (2002 TT)</a>, <a href="https://www.smartkarma.com/entities/winbond-electronics-corp" target="_blank" data-smartkarma-citation="entities:9177:1" rel="noopener">Winbond Electronics (2344 TT)</a> and <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Alibaba Group (9988 HK), Ping An Insurance (H) (2318 HK), Tencent (700 HK), Country Garden Services Holdings (6098 HK) and JD Health (6618 HK) while there was short covering on Meituan (3690 HK), BYD (1211 HK), Xinjiang Goldwind Science &amp; Technology H (2208 HK), Shanghai Fosun Pharmaceutical (Group) (2196 HK) and New Oriental Education &amp; Technology Group (9901 HK). Shorts increased in the Consumer Discretionary, Financials, Real Estate, Communication Services and Industrial sectors.In Japan, stocks increased on Daito Trust Construct (1878 JP), Money Forward (3994 JP), Shimizu Corp (1803 JP), Seiko Epson (6724 JP) and giftee Inc (4449 JP) while there was short covering on Kirin Holdings (2503 JP), BASE Inc (4477 JP), CyberAgent Inc (4751 JP), Renesas Electronics (6723 JP) and Industrial &amp; Infrastructure Fund Investment (3249 JP). Shorts increased in the Utilities sector while decreasing in the Consumer Staples sector.In Korea, shorts increased on LG Electronics (066570 KS), Oci Co Ltd (010060 KS), Amorepacific Corp (090430 KS), Kumho Petro Chemical (011780 KS) and LG Display (034220 KS) while shorts were covered on Samsung Electronics (005930 KS), Kakao Corp (035720 KS), Doosan Heavy Industries &amp; Construction (034020 KS), Hyundai Rotem Company (064350 KS) and LG Household &amp; Health Care (051900 KS). In Taiwan, shorts increased on Innolux Corp (3481 TT), Asustek Computer (2357 TT), Delta Electronics (2308 TT), AU Optronics (2409 TT) and Asia Cement (1102 TT) while shorts covered on United Microelectronics Corp (2303 TT), Quanta Computer (2382 TT), China Steel (2002 TT), Winbond Electronics (2344 TT) and Yageo Corporation (2327 TT). 

Asia Shorts: Alibaba, Tencent, Meituan, BYD, Daito, Kirin, BASE, LGE, OCI, Kakao, LGH&H, Innolux

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Equity Bottom-Up

<p>Samsung had big semiconductor revenue growth in the second quarter, driven mainly by a tight memory market which experienced price increases.  This brought the company's revenues slightly higher than Intel's.  Leading indicators imply that this distinction will be short-lived.</p>

Samsung had big semiconductor revenue growth in the second quarter, driven mainly by a tight memory market which experienced price increases.  This brought the company's revenues slightly higher than Intel's.  Leading indicators imply that this distinction will be short-lived.

Samsung 2Q21 Semiconductor Earnings Super Strong, For Now

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.

Samsung Electronics Pref Shares / Event-Driven

<p>Samsung Electronics 1P is again close to -2σ based on the 20-day moving average compared to Ord. Due to the buying inflow to the local semiconductor sector yesterday and today, there was a gap in share price rise between Samsung Electronics Ord/1P. As a result, the sigma moved close to -3 in only two trading days.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 224.281px;" data-sheets-value='{"1":2,"2":"Sigma (σ) on a 20-day moving average"}'>Sigma (σ) on a 20-day moving average</td>
<td style="text-align: right; width: 66.0833px;" data-sheets-value='{"1":2,"2":"Today"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>Today</td>
<td style="text-align: right; width: 91.8646px;" data-sheets-value='{"1":2,"2":"T-1"}'>T-1</td>
<td style="text-align: right; width: 90.3333px;" data-sheets-value='{"1":2,"2":"T-2"}'>T-2</td>
<td style="text-align: right; width: 91.1042px;" data-sheets-value='{"1":2,"2":"T-3"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>T-3</td>
<td style="text-align: right; width: 90.3333px;" data-sheets-value='{"1":2,"2":"T-4"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>T-4</td>
<td style="text-align: right; width: 92px;" data-sheets-value='{"1":2,"2":"T-5"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>T-5</td>
</tr>
<tr>
<td style="width: 224.281px;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd Preference Shares Non Voting"}' data-sheets-formula="=R[-8]C[0]">Samsung Electronics Co Ltd Preference Shares Non Voting</td>
<td style="text-align: right; width: 66.0833px;" data-sheets-value='{"1":3,"3":-1.7248462773151187}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$2")'>-1.72</td>
<td style="text-align: right; width: 91.8646px;" data-sheets-value='{"1":3,"3":-0.7038853714467251}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$3")'>-0.70</td>
<td style="text-align: right; width: 90.3333px;" data-sheets-value='{"1":3,"3":1.100880426633647}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$4")'>1.10</td>
<td style="text-align: right; width: 91.1042px;" data-sheets-value='{"1":3,"3":0.5954731177835678}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$5")'>0.60</td>
<td style="text-align: right; width: 90.3333px;" data-sheets-value='{"1":3,"3":0.737146622380329}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$6")'>0.74</td>
<td style="text-align: right; width: 92px;" data-sheets-value='{"1":3,"3":-0.12001620408726474}' data-sheets-numberformat='[null,2,"#,##0.00",1]' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$7")'>-0.12</td>
</tr>
<tr><td colspan="7" style="width: 746px;">Source: KRX</td></tr>
</tbody>
</table><p>Based on today's closing prices, the 1P discount is 9.53%. This is the same level as the 180-day average.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd Preference Shares Non Voting"}' data-sheets-formula="=R[-52]C[0]">Samsung Electronics Co Ltd Preference Shares Non Voting</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current sigma on a 20-day moving average"}'>Current sigma on a 20-day moving average</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-1.7248462773151187}' data-sheets-numberformat='[null,2,"#,##0.00σ",1]' data-sheets-formula='=indirect("$B"&amp;R69C[0])'>-1.72σ</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current discount"}'><strong>Current discount</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09529553679131486}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula='=indirect("$E"&amp;R70C[0])'><strong>9.53%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Δ to 180-day mean"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>Δ to 180-day mean</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0005967479021989908}' data-sheets-numberformat='[null,3,"0.00%p",1]' data-sheets-formula='=indirect("$B"&amp;R70C[0])'>0.06%p</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Δ to 180-day low"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>Δ to 180-day low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.042736753942075545}' data-sheets-numberformat='[null,3,"0.00%p",1]' data-sheets-formula='=indirect("$C"&amp;R70C[0])'>4.27%p</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Δ to 180-day high"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]'>Δ to 180-day high</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.036005752774921906}' data-sheets-numberformat='[null,3,"0.00%p",1]' data-sheets-formula='=indirect("$D"&amp;R70C[0])'>-3.60%p</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>Although the 1P discount has shown a downward trend since March of this year, it has fluctuated quite tight in the short-term intervals. Although the overall slowdown signal in the semiconductor sector affected the overall direction of the 1P discount, the uncertainty factor about the special dividend payment still prevented the one-sided decrease in the 1P discount.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/222/050/original/image_73298300321628059890127.png?1628059893" class="editor-image img-responsive" data-smartkarma-image-id="222050"></figure>

Samsung Electronics 1P is again close to -2σ based on the 20-day moving average compared to Ord. Due to the buying inflow to the local semiconductor sector yesterday and today, there was a gap in share price rise between Samsung Electronics Ord/1P. As a result, the sigma moved close to -3 in only two trading days.











Sigma (σ) on a 20-day moving average
Today
T-1
T-2
T-3
T-4
T-5


Samsung Electronics Co Ltd Preference Shares Non Voting
-1.72
-0.70
1.10
0.60
0.74
-0.12

Source: KRX

Based on today's closing prices, the 1P discount is 9.53%. This is the same level as the 180-day average.





Samsung Electronics Co Ltd Preference Shares Non Voting

Current sigma on a 20-day moving average
-1.72σ


Current discount
9.53%


Δ to 180-day mean
0.06%p


Δ to 180-day low
4.27%p


Δ to 180-day high
-3.60%p

Source: KRX

Although the 1P discount has shown a downward trend since March of this year, it has fluctuated quite tight in the short-term intervals. Although the overall slowdown signal in the semiconductor sector affected the overall direction of the 1P discount, the uncertainty factor about the special dividend payment still prevented the one-sided decrease in the 1P discount.

Samsung 1P Close To -2σ: Trade This Divergence for Three Reasons

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<div><p>Kakao Bank (KB), South Korea’s largest digital bank, raised up to US$2.2bn in its South Korean IPO. Kakao will hold a 27.26% stake post listing. The share will begin to trade on 6th Aug 2021.</p></div><div><p>Even though Kakao started operations only in July 2017, by 2020 it had already garnered more than 1% market share of overall loans and deposits in South Korea. KB’s loans have grown by 138% over 2018 to 1Q21 to reach KRW21.6tn, while its deposits have grown by 197% over the same period to reach KRW24.2tn. </p></div><div><p>Over 2018-20, its total income (Net interest income plus net fee income) grew by 216%, while it went from booking a loss in 2018 to reporting a 26% profit margin by 2020. KB’s total income was up another 60% YoY in 1Q21, while PAT was up 153% YoY.</p></div><div><p>We have covered various aspects of the deal in our previous notes, <a href="https://www.smartkarma.com/insights/kakao-bank-ipo-riding-on-parent-s-network-but-boundaries-with-kakao-pay-remain-unclear" target="_blank" rel="noopener">Kakao Bank IPO - Riding on parents network but boundaries with Kakao Pay remain unclear</a>, <a href="https://www.smartkarma.com/insights/kakao-bank-ipo-pricey-as-it-should-be" target="_blank" rel="noopener">Kakao Bank IPO - Pricey as It Should Be </a>and <a href="https://www.smartkarma.com/insights/kakao-bank-ipo-lack-of-lock-up-and-msci-ftse-index-implications" target="_blank" rel="noopener">Kakao Bank IPO - Lack of Lock-Up and MSCI, FTSE Index Implications</a>.</p></div><div><p>In this note, we will talk about the deal's trading dynamics.</p></div>

Kakao Bank (KB), South Korea’s largest digital bank, raised up to US$2.2bn in its South Korean IPO. Kakao will hold a 27.26% stake post listing. The share will begin to trade on 6th Aug 2021.Even though Kakao started operations only in July 2017, by 2020 it had already garnered more than 1% market share of overall loans and deposits in South Korea. KB’s loans have grown by 138% over 2018 to 1Q21 to reach KRW21.6tn, while its deposits have grown by 197% over the same period to reach KRW24.2tn. Over 2018-20, its total income (Net interest income plus net fee income) grew by 216%, while it went from booking a loss in 2018 to reporting a 26% profit margin by 2020. KB’s total income was up another 60% YoY in 1Q21, while PAT was up 153% YoY.We have covered various aspects of the deal in our previous notes, Kakao Bank IPO - Riding on parents network but boundaries with Kakao Pay remain unclear, Kakao Bank IPO - Pricey as It Should Be and Kakao Bank IPO - Lack of Lock-Up and MSCI, FTSE Index Implications.In this note, we will talk about the deal's trading dynamics.

Kakao Bank IPO Trading - One for Instis, Closer Look at FTSE and MSCI Inclusion. Remain Buyers

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (SMSD LI)

Samsung's Lee Jae-Yong Gets Out of Jail (Again) & NAV Analysis of Samsung C&T

It was announced today that Samsung's Lee Jae-Yong will get out of jail as the Korean government will release him on parole this week after he...

Douglas Kim

Asia Shorts: Alibaba, Tencent, Meituan, BYD, Daito, Kirin, BASE, LGE, OCI, Kakao, LGH&H, Innolux

The Insight looks at short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to aid...

Brian Freitas

Samsung 2Q21 Semiconductor Earnings Super Strong, For Now

Samsung's 2Q21 revenues rose above those of Intel. Is this a permanent situation, or will Samsung's revenues fall once again below Intel's?

Jim Handy

Samsung 1P Close To -2σ: Trade This Divergence for Three Reasons

Samsung 1P/Ord is again close to -2σ. I recommend trading this divergence for the three reasons I discussed in this post.

Sanghyun Park

Kakao Bank IPO Trading - One for Instis, Closer Look at FTSE and MSCI Inclusion. Remain Buyers

Kakao Bank, South Korea’s largest digital bank, raised up to US$2.2bn in its South Korean IPO. Kakao will hold a 27.26% stake post listing. The...

Sumeet Singh

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