Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<div class="content-highlight">
<p data-testid="paragraph-0"><a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation (096770 KS)</a> confirmed today that it plans to <a href="https://www.reuters.com/business/energy/sk-innovation-expects-h2-refining-margins-gradually-improve-demand-rebounds-2021-08-03/" target="_blank" rel="noopener">split-off</a> its battery unit business. The company mentioned that it will separate out its battery and oil &amp; gas production businesses into individual units by October. These new companies would continue to be owned by SK Innovation. SK Innovation first mentioned in July that it is considering on splitting off its battery unit business and today's announcement is a confirmation of this initial  consideration.</p>
<p data-testid="paragraph-0">On September 16th, there will be an EGM to finally approve the formation of two new corporations including <strong>SK Battery Co</strong> (tentative name) and<strong> SK E&amp;P Corp</strong> (tentative name) which are expected to be officially launched on October 1st. </p>
<p>In our view, it appears that the market has mostly discounted the potential negative impact of the split-off the battery business which now has been confirmed. SK Innovation first hinted that it may split-off the battery business on July 1st. Since then, SK Innovation's share price has declined 17.6%. SK Innovation's market cap has declined by 4.8 trillion won in this period. It is fair to say that the market has overreacted to this potential split-off.</p>
<p>Now that the split-off has actually been announced, this could lead to reduced selling of SK Innovation as many investors see that the split-off could add long-term value for SK Battery and SK Innovation. </p>
</div>


SK Innovation (096770 KS) confirmed today that it plans to split-off its battery unit business. The company mentioned that it will separate out its battery and oil &amp; gas production businesses into individual units by October. These new companies would continue to be owned by SK Innovation. SK Innovation first mentioned in July that it is considering on splitting off its battery unit business and today's announcement is a confirmation of this initial  consideration.
On September 16th, there will be an EGM to finally approve the formation of two new corporations including SK Battery Co (tentative name) and SK E&amp;P Corp (tentative name) which are expected to be officially launched on October 1st. 
In our view, it appears that the market has mostly discounted the potential negative impact of the split-off the battery business which now has been confirmed. SK Innovation first hinted that it may split-off the battery business on July 1st. Since then, SK Innovation's share price has declined 17.6%. SK Innovation's market cap has declined by 4.8 trillion won in this period. It is fair to say that the market has overreacted to this potential split-off.
Now that the split-off has actually been announced, this could lead to reduced selling of SK Innovation as many investors see that the split-off could add long-term value for SK Battery and SK Innovation. 


SK Innovation: To Split SK Battery & SK E&P Business Units

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.

<h2>Split overview</h2><p>SK Innovation held a board meeting today and announced that it had decided to spin out (physical division) the battery business and the petroleum development (E&amp;P) business, respectively.</p><div class="content-highlight"><p><strong>The new corporations 'SK Battery Co., Ltd. (tentative name)' and 'SK E&amp;P Co., Ltd. (tentative name)' are scheduled to be officially launched on October 1 after getting shareholder approval on September 16.</strong></p></div><p>After the split, there will be three companies in total. SK innovation will remain as a listed corporation, which plans to conduct R&amp;D, business development, and M&amp;As as a holding company. The two new companies will become unlisted corporations. An overview of each company is as follows.</p><table class="table table-striped"><tbody>
<tr><td colspan="4" style="width: 25%;">Company overviews</td></tr>
<tr>
<td style="width: 25%;">Type</td>
<td style="width: 25%;">Surviving corporation</td>
<td style="width: 25%;">Spinoff company 1</td>
<td style="width: 25%;">Spinoff company 2</td>
</tr>
<tr>
<td style="width: 25%;">Name</td>
<td style="width: 25%;"><strong>SK Innovation Co., Ltd.</strong></td>
<td style="width: 25%;"><strong>SK Battery Co., Ltd.</strong></td>
<td style="width: 25%;"><strong>SK ENP Co., Ltd. </strong></td>
</tr>
<tr>
<td style="width: 25%;">Business area</td>
<td style="width: 25%;">All businesses except those subject to the spin-offs that are transferred to the new companies according to the spin-off plan</td>
<td style="width: 25%;">Battery business, including secondary battery business, e-mobility business, and ESS business</td>
<td style="width: 25%;">Overseas E&amp;P business and LNG-related businesses</td>
</tr>
<tr><td colspan="4" style="width: 25%;">Source: DART</td></tr>
</tbody></table><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/222/019/original/Screen+Shot+2021-08-03+at+10.39.14+PM.png?1628044771" class="editor-image img-responsive" data-smartkarma-image-id="222019"></figure><div class="content-highlight"><p><strong>This split is a physical division (or a simple spinout) that SK Innovation owns 100% of the new corporations. Therefore, a split ratio is not calculated.</strong></p></div><p>The following are the financials of each company as of March 31, 2021. More debt was transferred to SK Battery than initially expected. It is evident that SK Innovation intends to utilize the financing through the listing of SK Battery as a recapitalization of the entire company.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Financials"}'>Financials</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"SK Innovation Co., Ltd."}'>SK Innovation Co., Ltd.</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"SK Battery Co., Ltd."}'>SK Battery Co., Ltd.</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"SK ENP Co., Ltd."}'><div><div>SK ENP Co., Ltd.</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Q21 assets"}'>1Q21 assets</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":15880.741732131}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>₩15,880.7B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4630.887470696}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>₩4,630.9B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":771.093058802}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>₩771.1B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Q21 liabilities"}'>1Q21 liabilities</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2054.321132037}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>₩2,054.3B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2504.424587866}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>₩2,504.4B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":96.702765349}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>₩96.7B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"1Q21 equity"}'><strong>1Q21 equity</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":13826.420600094}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><strong>₩13,826.4B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2126.46288283}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><strong>₩2,126.5B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":674.390293453}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><strong>₩674.4B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"FY2020 sales"}'><strong>FY2020 sales</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2156.034428388}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><strong>₩2,156.0B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1592.944329042}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><strong>₩1,592.9B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":59.268989295}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><strong>₩59.3B</strong></td>
</tr>
<tr><td colspan="4" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>The future schedule is as follows. Since this event is a simple physical division, minority shareholders are not entitled to stock appraisal rights. However, they are granted the right to object to this division in shareholders' meeting, and the extraordinary general meeting is scheduled for September 16.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Schedule"}'>Schedule</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Board resolution"}'>Board resolution</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44411}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'>08. 03</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shareholder meeting"}'><strong>Shareholder meeting</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44455}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'><strong>09. 16</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Split record date"}'>Split record date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44470}' data-sheets-numberformat='{"1":5,"2":"mm. dd","3":1}'>10. 01</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

Split overviewSK Innovation held a board meeting today and announced that it had decided to spin out (physical division) the battery business and the petroleum development (E&amp;P) business, respectively.The new corporations 'SK Battery Co., Ltd. (tentative name)' and 'SK E&amp;P Co., Ltd. (tentative name)' are scheduled to be officially launched on October 1 after getting shareholder approval on September 16.After the split, there will be three companies in total. SK innovation will remain as a listed corporation, which plans to conduct R&amp;D, business development, and M&amp;As as a holding company. The two new companies will become unlisted corporations. An overview of each company is as follows.
Company overviews

Type
Surviving corporation
Spinoff company 1
Spinoff company 2


Name
SK Innovation Co., Ltd.
SK Battery Co., Ltd.
SK ENP Co., Ltd. 


Business area
All businesses except those subject to the spin-offs that are transferred to the new companies according to the spin-off plan
Battery business, including secondary battery business, e-mobility business, and ESS business
Overseas E&amp;P business and LNG-related businesses

Source: DART
This split is a physical division (or a simple spinout) that SK Innovation owns 100% of the new corporations. Therefore, a split ratio is not calculated.The following are the financials of each company as of March 31, 2021. More debt was transferred to SK Battery than initially expected. It is evident that SK Innovation intends to utilize the financing through the listing of SK Battery as a recapitalization of the entire company.







Financials

Name
SK Innovation Co., Ltd.
SK Battery Co., Ltd.
SK ENP Co., Ltd.


1Q21 assets
₩15,880.7B
₩4,630.9B
₩771.1B


1Q21 liabilities
₩2,054.3B
₩2,504.4B
₩96.7B


1Q21 equity
₩13,826.4B
₩2,126.5B
₩674.4B


FY2020 sales
₩2,156.0B
₩1,592.9B
₩59.3B

Source: DART

The future schedule is as follows. Since this event is a simple physical division, minority shareholders are not entitled to stock appraisal rights. However, they are granted the right to object to this division in shareholders' meeting, and the extraordinary general meeting is scheduled for September 16.





Schedule

Board resolution
08. 03


Shareholder meeting
09. 16


Split record date
10. 01

Source: DART



SK Innovation Split Overview & Implications

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/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/china-merchants-bank-co-ltd-3388a037-4214-4997-b45d-520518cfdb57" target="_blank" data-smartkarma-citation="entities:10987:1" rel="noopener">China Merchants Bank H (3968 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/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> and <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/weimob-inc" target="_blank" data-smartkarma-citation="entities:27394:1" rel="noopener">Weimob Inc. (2013 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a>, <a href="https://www.smartkarma.com/entities/nongfu-spring" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (9633 HK)</a> and <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a>. Shorts increased in the Communication Services, Consumer Discretionary, Financials and Health Care sectors.</p></div><div><p>In Japan, stocks increased on <a href="https://www.smartkarma.com/entities/shimano-inc" target="_blank" data-smartkarma-citation="entities:3777:1" rel="noopener">Shimano Inc (7309 JP)</a>, <a href="https://www.smartkarma.com/entities/harmonic-drive-systems-inc" target="_blank" data-smartkarma-citation="entities:10238:1" rel="noopener">Harmonic Drive Systems (6324 JP)</a>, <a href="https://www.smartkarma.com/entities/cocokara-fine-inc" target="_blank" data-smartkarma-citation="entities:15447:1" rel="noopener">Cocokara Fine (3098 JP)</a>, <a href="https://www.smartkarma.com/entities/nippon-steel-corporation" target="_blank" data-smartkarma-citation="entities:961:1" rel="noopener">Nippon Steel Corporation (5401 JP)</a> and <a href="https://www.smartkarma.com/entities/casio-computer-co-ltd" target="_blank" data-smartkarma-citation="entities:18338:1" rel="noopener">Casio Computer (6952 JP)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/pharma-foods-international" target="_blank" data-smartkarma-citation="entities:10530:1" rel="noopener">Pharma Foods International (2929 JP)</a>, <a href="https://www.smartkarma.com/entities/sumco-corp" target="_blank" data-smartkarma-citation="entities:379:1" rel="noopener">SUMCO Corp (3436 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/showa-denko-k-k" target="_blank" data-smartkarma-citation="entities:1496:1" rel="noopener">Showa Denko K.K. (4004 JP)</a> and <a href="https://www.smartkarma.com/entities/kobe-steel-ltd" target="_blank" data-smartkarma-citation="entities:209:1" rel="noopener">Kobe Steel Ltd (5406 JP)</a>. Shorts increased in the Consumer Discretionary, Industrials and Consumer Staples sectors while decreasing in the Health Care and Information Technology sectors.</p></div><div><p>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/hmm-co-ltd" target="_blank" data-smartkarma-citation="entities:13494:1" rel="noopener">HMM Co., Ltd. (011200 KS)</a>, <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>, <a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation (096770 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> and <a href="https://www.smartkarma.com/entities/pan-ocean-co-ltd" target="_blank" data-smartkarma-citation="entities:5279:1" rel="noopener">Pan Ocean (028670 KS)</a> while shorts were covered on <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/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a>, <a href="https://www.smartkarma.com/entities/gs-retail-co-ltd" target="_blank" data-smartkarma-citation="entities:3867:1" rel="noopener">GS Retail (007070 KS)</a>, <a href="https://www.smartkarma.com/entities/ncsoft-corp" target="_blank" data-smartkarma-citation="entities:5169:1" rel="noopener">NCSOFT Corp (036570 KS)</a> and <a href="https://www.smartkarma.com/entities/samsung-biologics-co-ltd" target="_blank" data-smartkarma-citation="entities:22932:1" rel="noopener">Samsung Biologics Co., (207940 KS)</a>. </p></div><div><p>In Taiwan, shorts increased 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/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 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/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/sitronix-technology-corp" target="_blank" data-smartkarma-citation="entities:5684:1" rel="noopener">Sitronix Technology (8016 TT)</a> while shorts covered on <a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/silergy-corp" target="_blank" data-smartkarma-citation="entities:13998:1" rel="noopener">Silergy Corp (6415 TT)</a>, <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a> and <a href="https://www.smartkarma.com/entities/chunghwa-telecom-co-ltd" target="_blank" data-smartkarma-citation="entities:9181:1" rel="noopener">Chunghwa Telecom (2412 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 Tencent (700 HK), China Merchants Bank H (3968 HK), Ping An Insurance (H) (2318 HK), Meituan (3690 HK) and Sunny Optical (2382 HK) while there was short covering on Weimob Inc. (2013 HK), Xiaomi Corp (1810 HK), JD.com Inc. (9618 HK), Nongfu Spring (9633 HK) and WuXi AppTec Co. Ltd. (2359 HK). Shorts increased in the Communication Services, Consumer Discretionary, Financials and Health Care sectors.In Japan, stocks increased on Shimano Inc (7309 JP), Harmonic Drive Systems (6324 JP), Cocokara Fine (3098 JP), Nippon Steel Corporation (5401 JP) and Casio Computer (6952 JP) while there was short covering on Pharma Foods International (2929 JP), SUMCO Corp (3436 JP), BASE Inc (4477 JP), Showa Denko K.K. (4004 JP) and Kobe Steel Ltd (5406 JP). Shorts increased in the Consumer Discretionary, Industrials and Consumer Staples sectors while decreasing in the Health Care and Information Technology sectors.In Korea, shorts increased on HMM Co., Ltd. (011200 KS), LG Display (034220 KS), SK Innovation (096770 KS), Kakao Corp (035720 KS) and Pan Ocean (028670 KS) while shorts were covered on Doosan Heavy Industries &amp; Construction (034020 KS), Doosan Infracore (042670 KS), GS Retail (007070 KS), NCSOFT Corp (036570 KS) and Samsung Biologics Co., (207940 KS). In Taiwan, shorts increased on United Microelectronics Corp (2303 TT), Novatek Microelectronics Corp (3034 TT), Quanta Computer (2382 TT), Winbond Electronics (2344 TT) and Sitronix Technology (8016 TT) while shorts covered on Yang Ming Marine Transport (2609 TT), TSMC (2330 TT), Silergy Corp (6415 TT), Yageo Corporation (2327 TT) and Chunghwa Telecom (2412 TT).

Asia Shorts: Tencent, CMB, Ping An, Weimob, WuXi, Shimano, Cocokara, HMM, Kakao, Doosan, Yang Ming

<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/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Kuaishou Technology (1024 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a>, <a href="https://www.smartkarma.com/entities/weimob-inc" target="_blank" data-smartkarma-citation="entities:27394:1" rel="noopener">Weimob Inc. (2013 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 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/geely-automobile-holdings-ltd" target="_blank" data-smartkarma-citation="entities:127:1" rel="noopener">Geely Auto (175 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/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a> and <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>. Shorts increased in the Materials, Communication Services and Industrials sectors, while decreasing in the Consumer Discretionary, Financials and Information Technology sectors.</p></div><div><p>In Japan, stocks increased on <a href="https://www.smartkarma.com/entities/showa-denko-k-k" target="_blank" data-smartkarma-citation="entities:1496:1" rel="noopener">Showa Denko K.K. (4004 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/premier-investment-corp" target="_blank" data-smartkarma-citation="entities:19428:1" rel="noopener">Premier Investment (8956 JP)</a>, <a href="https://www.smartkarma.com/entities/screen-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5563:1" rel="noopener">SCREEN Holdings (7735 JP)</a> and <a href="https://www.smartkarma.com/entities/activia-properties-inc" target="_blank" data-smartkarma-citation="entities:9498:1" rel="noopener">Activia Properties (3279 JP)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/kubota-corp" target="_blank" data-smartkarma-citation="entities:12926:1" rel="noopener">Kubota Corp (6326 JP)</a>, <a href="https://www.smartkarma.com/entities/asics-corp" target="_blank" data-smartkarma-citation="entities:16287:1" rel="noopener">ASICS Corp (7936 JP)</a>, <a href="https://www.smartkarma.com/entities/nabtesco-corp" target="_blank" data-smartkarma-citation="entities:13176:1" rel="noopener">Nabtesco Corp (6268 JP)</a>, <a href="https://www.smartkarma.com/entities/cocokara-fine-inc" target="_blank" data-smartkarma-citation="entities:15447:1" rel="noopener">Cocokara Fine (3098 JP)</a> and <a href="https://www.smartkarma.com/entities/pharma-foods-international" target="_blank" data-smartkarma-citation="entities:10530:1" rel="noopener">Pharma Foods International (2929 JP)</a>. Shorts increased in the Information Technology, Real Estate and Materials sectors while decreasing in the Industrials and Consumer Discretionary sectors.</p></div><div><p>In Korea, shorts increased on <a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation (096770 KS)</a>, <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>, <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a>, <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> and <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> while shorts were covered on <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/hmm-co-ltd" target="_blank" data-smartkarma-citation="entities:13494:1" rel="noopener">HMM Co., Ltd. (011200 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-electro-mechanics-co" target="_blank" data-smartkarma-citation="entities:539:1" rel="noopener">Samsung Electro Mechanics Co, Ltd. (009150 KS)</a> and <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>.</p></div><div><p>In Taiwan, shorts increased on <a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 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>, <a href="https://www.smartkarma.com/entities/yuanta-financial-holding-co" target="_blank" data-smartkarma-citation="entities:685:1" rel="noopener">Yuanta Financial Holding Co (2885 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> and <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> while shorts covered on <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 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/wan-hai-lines-ltd" target="_blank" data-smartkarma-citation="entities:14262:1" rel="noopener">Wan Hai Lines (2615 TT)</a>, <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a> and <a href="https://www.smartkarma.com/entities/wisdom-marine-lines-co-ltd" target="_blank" data-smartkarma-citation="entities:10001:1" rel="noopener">Wisdom Marine Lines (2637 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 Kuaishou Technology (1024 HK), JD.com Inc. (9618 HK), Weimob Inc. (2013 HK), Wuxi Biologics (2269 HK) and Tencent (700 HK) while there was short covering on Meituan (3690 HK), Geely Auto (175 HK), Ping An Insurance (H) (2318 HK), Sunny Optical (2382 HK) and Alibaba Group (9988 HK). Shorts increased in the Materials, Communication Services and Industrials sectors, while decreasing in the Consumer Discretionary, Financials and Information Technology sectors.In Japan, stocks increased on Showa Denko K.K. (4004 JP), Shimizu Corp (1803 JP), Premier Investment (8956 JP), SCREEN Holdings (7735 JP) and Activia Properties (3279 JP) while there was short covering on Kubota Corp (6326 JP), ASICS Corp (7936 JP), Nabtesco Corp (6268 JP), Cocokara Fine (3098 JP) and Pharma Foods International (2929 JP). Shorts increased in the Information Technology, Real Estate and Materials sectors while decreasing in the Industrials and Consumer Discretionary sectors.In Korea, shorts increased on SK Innovation (096770 KS), SK Hynix (000660 KS), Hyundai Motor Co (005380 KS), Celltrion Inc (068270 KS) and Samsung Electronics (005930 KS) while shorts were covered on Doosan Heavy Industries &amp; Construction (034020 KS), HMM Co., Ltd. (011200 KS), Samsung SDI (006400 KS), Samsung Electro Mechanics Co, Ltd. (009150 KS) and Oci Co Ltd (010060 KS).In Taiwan, shorts increased on Yang Ming Marine Transport (2609 TT), AU Optronics (2409 TT), Yuanta Financial Holding Co (2885 TT), Quanta Computer (2382 TT) and United Microelectronics Corp (2303 TT) while shorts covered on Evergreen Marine Corp (2603 TT), China Steel (2002 TT), Wan Hai Lines (2615 TT), Pegatron Corp (4938 TT) and Wisdom Marine Lines (2637 TT). 

Asia Shorts: Kuaishou, JD, Geely, Alibaba, Shimizu, Kubota, ASICS, SK Inno, Hynix, Doosan, Yang Ming

<p>SK Innovation announced at today's IR presentation that it is considering spinning off the rechargeable battery business. <span>At the same time, SK Innovation said that it would achieve an EBITDA of ₩2.5T in the battery business by 2025.</span></p><p>The specific performance targets for each year of the battery business are as follows.</p><ul>
<li><strong>First, they said that the battery business would turn to the black next year. After that, the company plans to achieve an EBITDA of ₩1T in 2023 and an EBITDA of ₩2.5T in 2025.</strong></li>
<li><strong>For SK IE Technology, they set EBITDA targets of ₩300B next year, ₩700B in 2023, and ₩1.4T in 2025.</strong></li>
</ul>

SK Innovation announced at today's IR presentation that it is considering spinning off the rechargeable battery business. At the same time, SK Innovation said that it would achieve an EBITDA of ₩2.5T in the battery business by 2025.The specific performance targets for each year of the battery business are as follows.
First, they said that the battery business would turn to the black next year. After that, the company plans to achieve an EBITDA of ₩1T in 2023 and an EBITDA of ₩2.5T in 2025.
For SK IE Technology, they set EBITDA targets of ₩300B next year, ₩700B in 2023, and ₩1.4T in 2025.


SK Innovation Battery Spinoff: What's Known at This Point

South Korea

SK Innovation Co., Ltd. refines, markets, and distributes oil.  The Company produces a variety of petroleum products, such as gasoline, kerosene, liquefied petroleumgas (LPG), and diesel oil.  SK Energy also manufactures petrochemical p roducts, including paraxylene, synthetic resins, styrene monomer, and ethylene.

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