Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>After the market close on 27 February, Samsung Display announced that it will sell its 4.95% stake in Sfa Engineering (056190 KS) in a block deal sale. </li>
<li>We would take the trade. We like the relatively large block deal sale discount as well as the company's attractive valuations. </li>
<li>SFA Engineering is trading at P/E of 8.3x, EV/EBITDA of 2.7x, and P/B of 0.7x in 2024, which are much lower than historical valuations.</li>
</ul>


After the market close on 27 February, Samsung Display announced that it will sell its 4.95% stake in Sfa Engineering (056190 KS) in a block deal sale. 
We would take the trade. We like the relatively large block deal sale discount as well as the company's attractive valuations. 
SFA Engineering is trading at P/E of 8.3x, EV/EBITDA of 2.7x, and P/B of 0.7x in 2024, which are much lower than historical valuations.


Block Deal Sale of 5% Stake In SFA Engineering by Samsung Display

Douglas Research Advisory

Equity Capital Markets

<ul>
<li>CK Solution is getting ready to complete its IPO in KOSPI in November. Its IPO price range is from 15,700 won to 18,000 won. </li>
<li>The IPO offering amount ranges from 49.4 billion won to 56.6 billion won. The book building for the institutional investors lasts from 4 to 8 November. </li>
<li>CK Solution specializes in dry room system for the rechargeable batteries manufacturing process. Rechargeable battery sector accounted for 92.9% of total sales in 1H 2024 followed by semiconductor (3.1%).</li>
</ul>


CK Solution is getting ready to complete its IPO in KOSPI in November. Its IPO price range is from 15,700 won to 18,000 won. 
The IPO offering amount ranges from 49.4 billion won to 56.6 billion won. The book building for the institutional investors lasts from 4 to 8 November. 
CK Solution specializes in dry room system for the rechargeable batteries manufacturing process. Rechargeable battery sector accounted for 92.9% of total sales in 1H 2024 followed by semiconductor (3.1%).


Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>NPS will likely use the KRX Value-Up Index as its benchmark, with Long-Term Growth and Value categories likely to adopt it.</li>
<li>When NPS shifts to the Value-Up Index, KOSDAQ stocks will likely drive significant flow impacts due to their lower overlap.</li>
<li>These non-overlapping KOSDAQ stocks, attracting over 1 trillion won, could see significant price impacts as funds gradually flow in.</li>
</ul>


NPS will likely use the KRX Value-Up Index as its benchmark, with Long-Term Growth and Value categories likely to adopt it.
When NPS shifts to the Value-Up Index, KOSDAQ stocks will likely drive significant flow impacts due to their lower overlap.
These non-overlapping KOSDAQ stocks, attracting over 1 trillion won, could see significant price impacts as funds gradually flow in.


NPS Cash Inflow Projections for KRX Value-Up Index & Surging Interest in KOSDAQ Stocks

<ul>
<li>KOSDAQ stocks are expected to make up 10-15% of the Value-Up Index, with 10-15 names benefiting. Even with smaller passive funds, the impact on these stocks could be significant.</li>
<li>KOSDAQ Global Index criteria overlap with the Value-Up Index, and KRX’s push suggests many KOSDAQ Global stocks will also appear in the Value-Up Index.</li>
<li>In the past 30 days, the KOSDAQ Global Index dropped 5.14%, but 5 of the top 10 gainers either announced value-ups or received value-up picks from brokers.</li>
</ul>


KOSDAQ stocks are expected to make up 10-15% of the Value-Up Index, with 10-15 names benefiting. Even with smaller passive funds, the impact on these stocks could be significant.
KOSDAQ Global Index criteria overlap with the Value-Up Index, and KRX’s push suggests many KOSDAQ Global stocks will also appear in the Value-Up Index.
In the past 30 days, the KOSDAQ Global Index dropped 5.14%, but 5 of the top 10 gainers either announced value-ups or received value-up picks from brokers.


Korea Value-Up Index Drops on the 24th: Hunt for the Winners in the KOSDAQ Global Index

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX Stocks as of Dec 15th which has an aggregated short interest worth USD10.4bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Hlb, Lg Electronics, Samsung C&amp;T, Samsung Electron, Posco Holdings I, Sk Hynix.</li>
</ul>


We analyzed the changes in short interest of KRX Stocks as of Dec 15th which has an aggregated short interest worth USD10.4bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Hlb, Lg Electronics, Samsung C&amp;T, Samsung Electron, Posco Holdings I, Sk Hynix.


KRX Short Interest Weekly (Dec 15th): HLB, Lg Electronics, Samsung C&T, Samsung Electron

South Korea

SFA Engineering Corp. manufactures factory automation and logistics systems. The Company's products include manufacturing system used for producing a picture tube.  SFA Engineering also produces stacker cranes, sorter, conveyor, and loader system for automated distribution center.

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

Sfa Engineering (056190 KS)

Block Deal Sale of 5% Stake In SFA Engineering by Samsung Display

Samsung Display announced that it will sell its 4.95% stake in Sfa Engineering in a block deal sale. We would take the trade. We like the sale...

Douglas Kim

CK Solution IPO Preview

CK Solution is set to complete its IPO on KOSPI in November with a price range of 15,700 to 18,000 won. The company specializes in dry room...

Douglas Kim

NPS Cash Inflow Projections for KRX Value-Up Index & Surging Interest in KOSDAQ Stocks

This post estimating how much cash NPS is looking to throw into the KRX Value-Up Index and why KOSDAQ stocks are becoming hot topics in the market.

Sanghyun Park

Korea Value-Up Index Drops on the 24th: Hunt for the Winners in the KOSDAQ Global Index

This post finds beneficiaries within the KOSDAQ Global Index as the Korea Value-Up Index details, including the constituents, will be released on...

Sanghyun Park

KRX Short Interest Weekly (Dec 15th): HLB, Lg Electronics, Samsung C&T, Samsung Electron

We analyzed KRX short interest report for the past week and highlight short interest changes in Hlb, Lg Electronics, Samsung C&T, Samsung Electron,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Block Deal Sale of 5% Stake In SFA Engineering by Samsung Display

Samsung Display announced that it will sell its 4.95% stake in Sfa Engineering in a block deal sale. We would take the trade. We like the sale...

Douglas Kim

CK Solution IPO Preview

​CK Solution is set to complete its IPO on KOSPI in November with a price range of 15,700 to 18,000 won. The company specializes in dry room...

Douglas Kim

NPS Cash Inflow Projections for KRX Value-Up Index & Surging Interest in KOSDAQ Stocks

This post estimating how much cash NPS is looking to throw into the KRX Value-Up Index and why KOSDAQ stocks are becoming hot topics in the market.

Sanghyun Park

Korea Value-Up Index Drops on the 24th: Hunt for the Winners in the KOSDAQ Global Index

This post finds beneficiaries within the KOSDAQ Global Index as the Korea Value-Up Index details, including the constituents, will be released on...

Sanghyun Park

KRX Short Interest Weekly (Dec 15th): HLB, Lg Electronics, Samsung C&T, Samsung Electron

We analyzed KRX short interest report for the past week and highlight short interest changes in Hlb, Lg Electronics, Samsung C&T, Samsung Electron,...

Ke Yan, CFA, FRM

CK Solution is set to complete its IPO on KOSPI in November with a price range of 15,700 to 18,000 won. The company specializes in dry room...