Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In the past several years, one of the biggest risk factors on Samsung Electronics and other Samsung Group affiliates has been the huge inheritance tax payments by the Lee family.</li>
<li>Despite the weak share price performances of the four major Samsung Group affiliates, their consolidated equity increased by 31.4% on average from end of 2019 to end of 3Q 2024.</li>
<li>Once Lee family pays off the fifth installment in 2025, the market could look upon this situation more favorably due to reduced overhang associated with additional future inheritance tax payments.</li>
</ul>


In the past several years, one of the biggest risk factors on Samsung Electronics and other Samsung Group affiliates has been the huge inheritance tax payments by the Lee family.
Despite the weak share price performances of the four major Samsung Group affiliates, their consolidated equity increased by 31.4% on average from end of 2019 to end of 3Q 2024.
Once Lee family pays off the fifth installment in 2025, the market could look upon this situation more favorably due to reduced overhang associated with additional future inheritance tax payments.


Samsung Electronics: Trading Strategy Post Another Inheritance Tax Sale

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.

Event-Driven

<ul>
<li>Some speculate Samsung might delay the value-up announcement until after the February 3 ruling, using it strategically to influence the verdict and align with the appeal's outcome.</li>
<li>Market chatter even surrounds Samsung's HBM test delays with NVIDIA, with some linking it to Lee Jae-yong’s February 3 appeal ruling—though it seems more like speculative conspiracy.</li>
<li>If Lee Jae-yong wins his appeal on February 3, it could trigger key events like value-up disclosure and HBM pass, significantly impacting Samsung's short-term price action and positions.</li>
</ul>


Some speculate Samsung might delay the value-up announcement until after the February 3 ruling, using it strategically to influence the verdict and align with the appeal's outcome.
Market chatter even surrounds Samsung's HBM test delays with NVIDIA, with some linking it to Lee Jae-yong’s February 3 appeal ruling—though it seems more like speculative conspiracy.
If Lee Jae-yong wins his appeal on February 3, it could trigger key events like value-up disclosure and HBM pass, significantly impacting Samsung's short-term price action and positions.


Samsung Electronics' Key Inflection Point: Lee Jae-Yong's Final Appeal Ruling on February 3

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>Intel's Panther Lake chip set to drive growth in AI PC market and spark resurgence in semiconductor foundry industry by second half of 2025.</li><li>Rapidus to provide 2nm chip samples to Broadcom, highlighting advancements in semiconductor technology and potential for increased performance.</li><li>Taiwanese companies eye opportunities in expanding renewable energy market in the Philippines, showcasing interest in sustainable business practices. CES 2025 sees Nvidia unveiling robot collaborations while concerns emerge over South Korea's absence. Honda and Sony face uncertainty as Afeela 1 debuts, while Tata Elxsi and Qualcomm team up to develop virtual models of Snapdragon Digital Chassis solutions. UK-Taiwan tech partnerships strengthen as British Representative to Taiwan concludes term, reflecting deepening alliance between the two countries.</li></ul>

Intel's Panther Lake chip set to drive growth in AI PC market and spark resurgence in semiconductor foundry industry by second half of 2025.Rapidus to provide 2nm chip samples to Broadcom, highlighting advancements in semiconductor technology and potential for increased performance.Taiwanese companies eye opportunities in expanding renewable energy market in the Philippines, showcasing interest in sustainable business practices. CES 2025 sees Nvidia unveiling robot collaborations while concerns emerge over South Korea's absence. Honda and Sony face uncertainty as Afeela 1 debuts, while Tata Elxsi and Qualcomm team up to develop virtual models of Snapdragon Digital Chassis solutions. UK-Taiwan tech partnerships strengthen as British Representative to Taiwan concludes term, reflecting deepening alliance between the two countries.

Tech Supply Chain Tracker (11-Jan-2025): Intel's Panther Lake boosts AI PC growth, foundry recovery by 2H25.

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

<ul>
<li>Since the last rebalancing of our portfolio on 5th September, it has returned 13.5% vs 9.5% from MSCI-Asia-ex-Japan. Since inception (15th May), our portfolio has appreciated 20.1% vs MXASJ's 18.6%.</li>
<li>Six stocks, SK Hynix, TSMC, Samsung Electronics, Alibaba, China Hongqiao, Tencent, contributed almost the entire return of our portfolio. Overweight on Korea drove more than half the portfolio's return.</li>
<li>We turn more selective on Chinese discretionary consumption and step into the Korean defense sector. We exclude Anta Sports and Mediatek and include Hyundai Rotem and Hon Hai Precision.</li>
</ul>


Since the last rebalancing of our portfolio on 5th September, it has returned 13.5% vs 9.5% from MSCI-Asia-ex-Japan. Since inception (15th May), our portfolio has appreciated 20.1% vs MXASJ's 18.6%.
Six stocks, SK Hynix, TSMC, Samsung Electronics, Alibaba, China Hongqiao, Tencent, contributed almost the entire return of our portfolio. Overweight on Korea drove more than half the portfolio's return.
We turn more selective on Chinese discretionary consumption and step into the Korean defense sector. We exclude Anta Sports and Mediatek and include Hyundai Rotem and Hon Hai Precision.


Asian Equities: Model Portfolio Outperformed Sharply; Less China Consumption, More Korea Defence

<ul><li>AI inkjet breakthrough in semiconductor manufacturing promises more precise coating, revolutionizing tech industry processes.</li><li>China's price war in EV sector causes financial chaos and supply chain disruptions for 2 years, impacting global market.</li><li>US House considers OLED import ban following patent dispute with Samsung Display Corporation, keeping spotlight on patent issues.</li></ul>

AI inkjet breakthrough in semiconductor manufacturing promises more precise coating, revolutionizing tech industry processes.China's price war in EV sector causes financial chaos and supply chain disruptions for 2 years, impacting global market.US House considers OLED import ban following patent dispute with Samsung Display Corporation, keeping spotlight on patent issues.

Tech Supply Chain Tracker (26-Dec-2024): AI inkjet tech offers precise semiconductor coating.

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 (SMSN LI)

Samsung Electronics: Trading Strategy Post Another Inheritance Tax Sale

It is start of another year and that means another fat inheritance tax payment for Samsung Electronics (005930 KS) and other Samsung Group affiliates.

Douglas Kim

Samsung Electronics' Key Inflection Point: Lee Jae-Yong's Final Appeal Ruling on February 3

If Lee Jae-yong wins his appeal on February 3, it could trigger events like value-up disclosure and HBM pass, impacting Samsung's short-term price...

Sanghyun Park

Tech Supply Chain Tracker (11-Jan-2025): Intel's Panther Lake boosts AI PC growth, foundry recovery by 2H25.

Intel's Panther Lake drives AI PC growth, Rapidus supplies 2nm chips to Broadcom, Taiwanese firms eye Philippines' renewable energy market,...

Tech Supply Chain Tracker

Asian Equities: Model Portfolio Outperformed Sharply; Less China Consumption, More Korea Defence

China's economic data (FAI & industrial growth sharply lower than expected, retail sales growth underwhelming) underscores the need for nuanced...

Manishi Raychaudhuri

Tech Supply Chain Tracker (26-Dec-2024): AI inkjet tech offers precise semiconductor coating.

AI inkjet breakthrough enhances semiconductor production; China's EV price war disrupts market; US House considers OLED import ban after patent...

Tech Supply Chain Tracker

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