IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

China Tourism Group Duty Free Corp Ltd / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-tourism-group-duty-free-corp-ltd" target="_blank" data-smartkarma-citation="entities:12278:1" rel="noopener">China Tourism Group Duty Free Corp Ltd (601888 CH)</a>/CTGDF, the largest travel retail operator in the world, aims to launch an H Share listing to raise US$2-3 billion on Friday.</li>
<li>CTGDF is a play on the normalization of domestic travel. However, the H Share listing timing is not ideal as a vital summer travel market, Sanya, is under renewed lockdown. </li>
<li>The recovery timing has again shifted, with expectations of a 4Q recovery, but 2022 consensus expectations look slightly optimistic. We prefer to remain on the sidelines.</li>
</ul>



China Tourism Group Duty Free Corp Ltd (601888 CH)/CTGDF, the largest travel retail operator in the world, aims to launch an H Share listing to raise US$2-3 billion on Friday.
CTGDF is a play on the normalization of domestic travel. However, the H Share listing timing is not ideal as a vital summer travel market, Sanya, is under renewed lockdown. 
The recovery timing has again shifted, with expectations of a 4Q recovery, but 2022 consensus expectations look slightly optimistic. We prefer to remain on the sidelines.


CTG Duty Free H Share Listing: Another False Dawn?

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>Starting 18 March, the current $5,000 purchase limit at the domestic duty free shops will be abolished for the locals.</li>
<li>The removal of the $5,000 purchase limit at duty free shops in Korea should encourage purchase of luxury women's apparel, bags, and cosmetics.</li>
<li>The removal of the purchase limit should help the major duty free operators in Korea including Hotel Shilla (008770 KS) and Shinsegae (004170 KS).  </li>
</ul>


Starting 18 March, the current $5,000 purchase limit at the domestic duty free shops will be abolished for the locals.
The removal of the $5,000 purchase limit at duty free shops in Korea should encourage purchase of luxury women's apparel, bags, and cosmetics.
The removal of the purchase limit should help the major duty free operators in Korea including Hotel Shilla (008770 KS) and Shinsegae (004170 KS).  


Elimination of Purchase Limits at Duty Free Shops in Korea

Event-Driven

<ul>
<li>On 22 February, the KRX announced that LG Energy Solution (373220 KS) will be included in numerous local indices including KOSPI 200, KOSPI 100, and KRX 100 effective 3/11/2022.</li>
<li>This has been widely expected by the market. Due to the inclusion in KOSPI 200, investors will be able to short LG Energy Solution starting 11 March. </li>
<li>Once Dongwon F&amp;B is excluded from the KOSPI 200 index, this could be a key buying opportunity on this stock, given the company's solid fundamentals. </li>
</ul>


On 22 February, the KRX announced that LG Energy Solution (373220 KS) will be included in numerous local indices including KOSPI 200, KOSPI 100, and KRX 100 effective 3/11/2022.
This has been widely expected by the market. Due to the inclusion in KOSPI 200, investors will be able to short LG Energy Solution starting 11 March. 
Once Dongwon F&amp;B is excluded from the KOSPI 200 index, this could be a key buying opportunity on this stock, given the company's solid fundamentals. 


KOSPI 200: LG Energy Solution Inclusion and Dongwon F&B Exclusion

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>KRX has announced the Fast Entry inclusion of <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> in the KOSPI200 Index at the close on 10 March. <a href="https://www.smartkarma.com/entities/dongwon-f-b-co-ltd" target="_blank" data-smartkarma-citation="entities:3274:1" rel="noopener">Dongwon F&amp;B (049770 KS)</a> will be deleted.</li>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a>'s inclusion in the KRX Secondary Battery Index and the BBIG Index should be announced in the next few days. That will add to passive buying.</li>
<li>Local institutions have been buyers on <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> since listing while retail and foreign investors have been sellers. There is a biggish lock up expiry coming up.</li>
</ul>


KRX has announced the Fast Entry inclusion of LG Energy Solution (373220 KS) in the KOSPI200 Index at the close on 10 March. Dongwon F&amp;B (049770 KS) will be deleted.

LG Energy Solution (373220 KS)'s inclusion in the KRX Secondary Battery Index and the BBIG Index should be announced in the next few days. That will add to passive buying.
Local institutions have been buyers on LG Energy Solution (373220 KS) since listing while retail and foreign investors have been sellers. There is a biggish lock up expiry coming up.


KOSPI200 Index Rebalance (March): LG Energy IN; Dongwon F&B Out

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.

<p>Korea has 6 tight sector pairs worth monitoring regularly. Of them, <strong>Hyundai Dept/Shinsegae now appears in an extreme diversion at -2.87σ on a 20-day moving average</strong>. Their 180-day correlation coefficient is 0.92369.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td 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;" data-sheets-value='{"1":2,"2":"Today"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Today</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"T-1"}'>T-1</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"T-2"}'>T-2</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shinhan Financial Group Co., Ltd./KB Financial Group Inc"}' data-sheets-formula='=Data!R[-11]C[1]&amp;"/"&amp;Data!R[-11]C[2]'>Shinhan Financial Group Co., Ltd./KB Financial Group Inc</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.037739760425131}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$2")'>2.04</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.7137569380785163}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$3")'>1.71</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.160993227615466}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$4")'>2.16</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LG Uplus Corp/SK Telecom Co Ltd"}' data-sheets-formula='=Data!R[-12]C[3]&amp;"/"&amp;Data!R[-12]C[4]'>LG Uplus Corp/SK Telecom Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.4295746334880794}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$2")'>1.43</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4296221017317747}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$3")'>0.43</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.24660010671563912}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$4")'>-0.25</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kia Corp/Hyundai Motor Co"}' data-sheets-formula='=Data!R[-13]C[5]&amp;"/"&amp;Data!R[-13]C[6]'>Kia Corp/Hyundai Motor Co</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-2.099785179684263}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$2")'>-2.10</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.909372721906592}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$3")'>-0.91</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-2.0407109696616685}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$4")'>-2.04</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Celltrion HealthCare Co Ltd/Celltrion, Inc."}' data-sheets-formula='=Data!R[-14]C[7]&amp;"/"&amp;Data!R[-14]C[8]'>Celltrion HealthCare Co Ltd/Celltrion, Inc.</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.09559180069113433}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$2")'>-0.10</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.21251880342441315}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$3")'>-0.21</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.31044173489418}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$4")'>-0.31</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"BGF Retail Co Ltd/GS Retail Co Ltd"}' data-sheets-formula='=Data!R[-15]C[9]&amp;"/"&amp;Data!R[-15]C[10]'>BGF Retail Co Ltd/GS Retail Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.8212563464223854}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$2")'>2.82</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.6113428733650603}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$3")'>1.61</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2360588141562515}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$4")'>0.24</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hyundai Department Store Co Ltd/Shinsegae Inc"}' data-sheets-formula='=Data!R[-16]C[11]&amp;"/"&amp;Data!R[-16]C[12]'><strong>Hyundai Department Store Co Ltd/Shinsegae Inc</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-2.8654321706876544}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$2")'><strong>-2.87</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-2.6015371114013477}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$3")'><strong>-2.60</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-1.807722354711979}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect(R[0]C8&amp;"!$I$4")'><strong>-1.81</strong></td>
</tr>
<tr><td colspan="4">Source: KRX<strong><br></strong>
</td></tr>
</tbody>
</table><p>The current price ratio is 5.46% below the 180-day average and 17.28% below the 180-day high. What's noteworthy is that the price ratio fell 12.2% only in 9 trading sessions, causing a 4σ movement downwardly for Hyundai Dept.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/204/512/original/Hyundai+Dept.+vs.+Shinsegae.png?1620244530" class="editor-image img-responsive" data-smartkarma-image-id="204512"></figure></section><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr><td colspan="2" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Hyundai Department Store Co Ltd/Shinsegae Inc"}' data-sheets-formula="=R[-49]C[-10]">Hyundai Department Store Co Ltd/Shinsegae Inc</td></tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"Current price ratio"}'>Current price ratio</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.28462757527733756}' data-sheets-numberformat='{"1":2,"2":"#,##0.00000","3":1}' data-sheets-formula='=indirect("$B"&amp;R74C[0])'>0.28463</td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"%Δ to 180-day mean"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>%Δ to 180-day mean</strong></td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":-0.05460355438237345}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=indirect("$C"&amp;R74C[0])'><strong>-5.46%</strong></td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"%Δ to 180-day high"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>%Δ to 180-day high</strong></td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":-0.1727905582093986}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=indirect("$D"&amp;R74C[0])'><strong>-17.28%</strong></td>
</tr>
<tr>
<td style="width: 351.818px;" data-sheets-value='{"1":2,"2":"%Δ to 180-day low"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>%Δ to 180-day low</td>
<td style="text-align: right; width: 350.909px;" data-sheets-value='{"1":3,"3":0.0910723718964607}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=indirect("$E"&amp;R74C[0])'>9.11%</td>
</tr>
<tr><td colspan="2" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

Korea has 6 tight sector pairs worth monitoring regularly. Of them, Hyundai Dept/Shinsegae now appears in an extreme diversion at -2.87σ on a 20-day moving average. Their 180-day correlation coefficient is 0.92369.








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


Shinhan Financial Group Co., Ltd./KB Financial Group Inc
2.04
1.71
2.16


LG Uplus Corp/SK Telecom Co Ltd
1.43
0.43
-0.25


Kia Corp/Hyundai Motor Co
-2.10
-0.91
-2.04


Celltrion HealthCare Co Ltd/Celltrion, Inc.
-0.10
-0.21
-0.31


BGF Retail Co Ltd/GS Retail Co Ltd
2.82
1.61
0.24


Hyundai Department Store Co Ltd/Shinsegae Inc
-2.87
-2.60
-1.81

Source: KRX 


The current price ratio is 5.46% below the 180-day average and 17.28% below the 180-day high. What's noteworthy is that the price ratio fell 12.2% only in 9 trading sessions, causing a 4σ movement downwardly for Hyundai Dept.





Hyundai Department Store Co Ltd/Shinsegae Inc

Current price ratio
0.28463


%Δ to 180-day mean
-5.46%


%Δ to 180-day high
-17.28%


%Δ to 180-day low
9.11%

Source: KRX



Hyundai Dept & Shinsegae At -2.9σ Due to Duty-Free Factor, but Should Head for Mean Reversion Now

South Korea

Shinsegae Co., Ltd. operates department stores in South Korea.  The Company retails food, clothing, household goods, electronics, and other items through several branch stores.

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

Shinsegae (004170 KS)

Elimination of Purchase Limits at Duty Free Shops in Korea

Starting 18 March, the current $5,000 purchase limit at the domestic duty free shops will be abolished for the locals which should help Hotel...

Douglas Kim

KOSPI 200: LG Energy Solution Inclusion and Dongwon F&B Exclusion

On 22 February, the KRX announced that LG Energy Solution (373220 KS) will be included in numerous local indices including KOSPI 200, KOSPI 100,...

Douglas Kim

KOSPI200 Index Rebalance (March): LG Energy IN; Dongwon F&B Out

LG Energy will be added to the KOSPI200 Index at the close on 10 March, while Dongwon F&B will be deleted. There will be a large KOSPI200 basket...

Brian Freitas

Hyundai Dept & Shinsegae At -2.9σ Due to Duty-Free Factor, but Should Head for Mean Reversion Now

Hyundai Dept and Shinsegae are on the radar among the Korean sector pairs as the duo is in an extreme diversion. This post discusses three reasons...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CTG Duty Free H Share Listing: Another False Dawn?

We are inclined to avoid the H Share listing as with a renewed lockdown in a key summer travel region, CTGDF has had one too many false dawns of...

Arun George

Elimination of Purchase Limits at Duty Free Shops in Korea

Starting 18 March, the current $5,000 purchase limit at the domestic duty free shops will be abolished for the locals which should help Hotel...

Douglas Kim

KOSPI 200: LG Energy Solution Inclusion and Dongwon F&B Exclusion

On 22 February, the KRX announced that LG Energy Solution (373220 KS) will be included in numerous local indices including KOSPI 200, KOSPI 100,...

Douglas Kim

KOSPI200 Index Rebalance (March): LG Energy IN; Dongwon F&B Out

LG Energy will be added to the KOSPI200 Index at the close on 10 March, while Dongwon F&B will be deleted. There will be a large KOSPI200 basket...

Brian Freitas

Hyundai Dept & Shinsegae At -2.9σ Due to Duty-Free Factor, but Should Head for Mean Reversion Now

Hyundai Dept and Shinsegae are on the radar among the Korean sector pairs as the duo is in an extreme diversion. This post discusses three reasons...

Sanghyun Park