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 discuss some of the key beneficiaries in Korea that could actually stand to gain from such export restrictions. </li>
<li>We also discuss other Korean companies that could be negatively impacted by this move by the Chinese government. </li>
<li>Despite the uncertainties related to China’s export restrictions of rare earths minerals, we do not expect sudden collapse of the entire semiconductor and EVs value-chain in Korea.</li>
</ul>


In this insight, we discuss some of the key beneficiaries in Korea that could actually stand to gain from such export restrictions. 
We also discuss other Korean companies that could be negatively impacted by this move by the Chinese government. 
Despite the uncertainties related to China’s export restrictions of rare earths minerals, we do not expect sudden collapse of the entire semiconductor and EVs value-chain in Korea.


China's Export Restrictions on Rare Earth Minerals - Key Impact on Korean Companies

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>Samsung Life needs FSC approval for a 10-year holding plan on its Samsung Electronics stake. Without it, the whole plan could fall apart, so it’s all about regulatory green lights.</li>
<li>If FSC approves Samsung Life's long-term holding, they can't sell those shares for at least 5 years—no exit strategy for the next half-decade due to regulatory rules.</li>
<li>Samsung Life will convert part of its stake into long-term holdings, signaling how future buybacks and special dividends will balance in Samsung Electronics' next shareholder return program.</li>
</ul>


Samsung Life needs FSC approval for a 10-year holding plan on its Samsung Electronics stake. Without it, the whole plan could fall apart, so it’s all about regulatory green lights.
If FSC approves Samsung Life's long-term holding, they can't sell those shares for at least 5 years—no exit strategy for the next half-decade due to regulatory rules.
Samsung Life will convert part of its stake into long-term holdings, signaling how future buybacks and special dividends will balance in Samsung Electronics' next shareholder return program.


Converting Samsung Life's Samsung Electronics Stake to Long-Term Holdings: Clearing up the Confusion

<ul>
<li>Three major reasons why Samsung Electronics is our 2025 high conviction pick include attractive valuations, reduced concerns about inheritance tax overhang, and higher likely total shareholder returns.</li>
<li>Given that 2025 will be the last year of major inheritance tax payment for the Lee family, this reduced overhang could act as a positive sentiment on Samsung Electronics.</li>
<li>Pressures on Samsung to announce material improvement to shareholder returns are coming not just from existing shareholders but also from the Korean government due to Korea Corporate Value Up program.</li>
</ul>


Three major reasons why Samsung Electronics is our 2025 high conviction pick include attractive valuations, reduced concerns about inheritance tax overhang, and higher likely total shareholder returns.
Given that 2025 will be the last year of major inheritance tax payment for the Lee family, this reduced overhang could act as a positive sentiment on Samsung Electronics.
Pressures on Samsung to announce material improvement to shareholder returns are coming not just from existing shareholders but also from the Korean government due to Korea Corporate Value Up program.


2025 High Conviction: Samsung Electronics

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>1Q25 better than Consensus by a good margin, guided Operating Profit KRW 6.6tn versus Consensus 5.3tn. Better Smartphone and Memory price. Risk of demand boosted ahead of US tariffs. </li>
<li>Consensus expects sequential growth from 1Q to 4Q25 on better memory prices and HBM3E contribution (late, small, but finally). </li>
<li>The stock is cheap and outperforming, flat YTD and flat since the market correction started mid-Feb-25. Also outperforming SK Hynix. Main risk is AI demand outlook.</li>
</ul>


1Q25 better than Consensus by a good margin, guided Operating Profit KRW 6.6tn versus Consensus 5.3tn. Better Smartphone and Memory price. Risk of demand boosted ahead of US tariffs. 
Consensus expects sequential growth from 1Q to 4Q25 on better memory prices and HBM3E contribution (late, small, but finally). 
The stock is cheap and outperforming, flat YTD and flat since the market correction started mid-Feb-25. Also outperforming SK Hynix. Main risk is AI demand outlook.


Samsung Elec Better 1Q25 on Smartphone. 2-4Q25 Upside Due to Memory Price Recovery

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

Samsung Electronics Pref Shares / Event-Driven

<ul>
<li>Over the last year, the discount of <a href="https://www.smartkarma.com/entities/samsung-electronics-pref-shares" target="_blank" data-smartkarma-citation="entities:23591:1" rel="noopener">Samsung Electronics Pref Shares (005935 KS)</a> to <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> has increased from 5% to 17%.</li>
<li>The preferred shares have adequate liquidity, a large issue market cap, and now trade at a much higher dividend yield. A special dividend will further increase the dividend yield differential.</li>
<li>Breaking from history, the preferred shares discount has continued to increase as the stock has moved higher. With the preferred shares trading near its widest discount, that could change.</li>
</ul>


Over the last year, the discount of Samsung Electronics Pref Shares (005935 KS) to Samsung Electronics (005930 KS) has increased from 5% to 17%.
The preferred shares have adequate liquidity, a large issue market cap, and now trade at a much higher dividend yield. A special dividend will further increase the dividend yield differential.
Breaking from history, the preferred shares discount has continued to increase as the stock has moved higher. With the preferred shares trading near its widest discount, that could change.


Samsung Electronics: Prefs Need to Catch Up

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.

Samsung Electronics Pref Shares (005935 KS)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Samsung Electronics Pref Shares (005935 KS)

China's Export Restrictions on Rare Earth Minerals - Key Impact on Korean Companies

Despite the uncertainties related to China’s export restrictions of rare earths minerals, we do not expect sudden collapse of the entire...

Douglas Kim

Converting Samsung Life's Samsung Electronics Stake to Long-Term Holdings: Clearing up the Confusion

Turning Samsung Life’s stake in Samsung Electronics into long-term holdings: Sorting out the noise and digging into the key moves that matter most...

Sanghyun Park

2025 High Conviction: Samsung Electronics

A BIG relief rally on Samsung Electronics likely next week. Trump administration just announced that smartphones, computers, semiconductor devices,...

Douglas Kim

Samsung Elec Better 1Q25 on Smartphone. 2-4Q25 Upside Due to Memory Price Recovery

Samsung's 1Q25 results beat consensus, guided higher operating profit. Expecting growth in 4Q25 with better memory prices. Stock cheap and...

Nicolas Baratte

Samsung Electronics: Prefs Need to Catch Up

Samsung Electronics preferred shares have a large market cap, are liquid, and offer a higher div yield compared to the ordinary shares. With the...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China's Export Restrictions on Rare Earth Minerals - Key Impact on Korean Companies

Despite the uncertainties related to China’s export restrictions of rare earths minerals, we do not expect sudden collapse of the entire...

Douglas Kim

Converting Samsung Life's Samsung Electronics Stake to Long-Term Holdings: Clearing up the Confusion

Turning Samsung Life’s stake in Samsung Electronics into long-term holdings: Sorting out the noise and digging into the key moves that matter most...

Sanghyun Park

2025 High Conviction: Samsung Electronics

A BIG relief rally on Samsung Electronics likely next week. Trump administration just announced that smartphones, computers, semiconductor devices,...

Douglas Kim

Samsung Elec Better 1Q25 on Smartphone. 2-4Q25 Upside Due to Memory Price Recovery

​Samsung's 1Q25 results beat consensus, guided higher operating profit. Expecting growth in 4Q25 with better memory prices. Stock cheap and...

Nicolas Baratte

Samsung Electronics: Prefs Need to Catch Up

Samsung Electronics preferred shares have a large market cap, are liquid, and offer a higher div yield compared to the ordinary shares. With the...

Brian Freitas

Samsung's 1Q25 results beat consensus, guided higher operating profit. Expecting growth in 4Q25 with better memory prices. Stock cheap and...