Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>There are some major surprises (both inclusions and exclusions) in the Korea Value Up index. </li>
<li>In particular, the telecom sector (SK Telecom and KT) and large cap holding companies (Samsung C&amp;T and LG Corp) are surprising exclusions in the index.</li>
<li>There are many surprising inclusions in the Korea Value Up Index. We provide 30 companies are surprising inclusions in the Korea Value Up Index (19 KOSDAQ and 11 KOSPI listed).</li>
</ul>


There are some major surprises (both inclusions and exclusions) in the Korea Value Up index. 
In particular, the telecom sector (SK Telecom and KT) and large cap holding companies (Samsung C&amp;T and LG Corp) are surprising exclusions in the index.
There are many surprising inclusions in the Korea Value Up Index. We provide 30 companies are surprising inclusions in the Korea Value Up Index (19 KOSDAQ and 11 KOSPI listed).


Korea Value Up Index - Surprising Inclusions and Exclusions

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.

Equity Bottom-Up

HD Hyundai Heavy Industries  / Equity Bottom-Up

<ul>
<li>The memory giants, Samsung and SK Hynix, have driven the Korean collapse, as AI anxiety and competition concern takes hold. However, there's more to Korea than memory and AI capex.</li>
<li>Throughout last month's carnage, Korean earnings estimates continued to be upgraded - not only in tech but also in financials, retail, basic materials, energy and industrial services.</li>
<li>Based on strong growth, attractive valuations, healthy balance-sheets, robust earnings upgrades, we highlight 15 non-tech Korean companies. Companies from industrials, select household products, basic materials have the strongest growth forecasts.</li>
</ul>


The memory giants, Samsung and SK Hynix, have driven the Korean collapse, as AI anxiety and competition concern takes hold. However, there's more to Korea than memory and AI capex.
Throughout last month's carnage, Korean earnings estimates continued to be upgraded - not only in tech but also in financials, retail, basic materials, energy and industrial services.
Based on strong growth, attractive valuations, healthy balance-sheets, robust earnings upgrades, we highlight 15 non-tech Korean companies. Companies from industrials, select household products, basic materials have the strongest growth forecasts.


Asian Equities: Korea - If Not Memory, Then What?

<ul>
<li>Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. </li>
<li>SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.</li>
<li>Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.</li>
</ul>


Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. 
SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.
Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.


Event-Driven

<ul>
<li><em><strong>SK Inc (034730 KS) announced that it plans to sell about 1.25 trillion won worth of its stake (13.94%) in SK Biopharmaceuticals (326030 KS) through a PRS contract.</strong></em></li>
<li>SK Inc plans to sell 10.917 million shares of SK Biopharm on 30 March 2026. Selling price for SK Biopharm is 114,500 won.</li>
<li>We believe that this PRS transaction is likely to positively impact SK Inc and SKC. However, it should have a slight negative impact on SK Biopharm.</li>
</ul>


SK Inc (034730 KS) announced that it plans to sell about 1.25 trillion won worth of its stake (13.94%) in SK Biopharmaceuticals (326030 KS) through a PRS contract.
SK Inc plans to sell 10.917 million shares of SK Biopharm on 30 March 2026. Selling price for SK Biopharm is 114,500 won.
We believe that this PRS transaction is likely to positively impact SK Inc and SKC. However, it should have a slight negative impact on SK Biopharm.


SK Inc: Selling 1.25 Trillion Won Worth of SK Biopharm Through a PRS Contract

<ul>
<li>SK Hynix achieved record high results in terms of sales and operating profit in 2025, fueled by growing demand for artificial intelligence (AI) semiconductors. </li>
<li>SK Hynix announced that it plans to cancel 15.3 million treasury shares, representing 2.1% of its outstanding shares (728 million) to enhance shareholder value.</li>
<li>SK Hynix announced that it plans to establish an AI solutions company (tentatively named "AI Co") in the United States and invest up to US$10 billion (14.3 trillion won).</li>
</ul>


SK Hynix achieved record high results in terms of sales and operating profit in 2025, fueled by growing demand for artificial intelligence (AI) semiconductors. 
SK Hynix announced that it plans to cancel 15.3 million treasury shares, representing 2.1% of its outstanding shares (728 million) to enhance shareholder value.
SK Hynix announced that it plans to establish an AI solutions company (tentatively named "AI Co") in the United States and invest up to US$10 billion (14.3 trillion won).


SK Hynix: Record Results, Cancellation of Treasury Shares, & Start of an AI Solution Co in the US

South Korea

SK Telecom Co., Ltd. is a Korean mobile and telecommunications operator. The Company provides cellular voice, wireless data, and wireless internet services. SK Telecom also offers fixed line services and platform services.

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

SK Telecom (017670 KS)

Korea Value Up Index - Surprising Inclusions and Exclusions

There are many surprising inclusions and exclusions in the Korea Value Up Index. We provide 30 companies that are surprising inclusions and 10...

Douglas Kim

Asian Equities: Korea - If Not Memory, Then What?

KR memory giants have driven equity crash, but many non-tech firms show strong growth, cheap valuation, healthy balance sheets & EPS upgrades. We...

Manishi Raychaudhuri

2026 High Conviction Idea: SK Inc

SK Inc (034730 KS) just announced that it will cancel about 20% of its outstanding shares, representing 4.8 trillion won ($3.3 billion). This is...

Douglas Kim

SK Inc: Selling 1.25 Trillion Won Worth of SK Biopharm Through a PRS Contract

SK Inc (034730 KS) announced that it plans to sell about 1.25 trillion won worth of its stake (13.94%) in SK Biopharmaceuticals (326030 KS) through...

Douglas Kim

SK Hynix: Record Results, Cancellation of Treasury Shares, & Start of an AI Solution Co in the US

SK Hynix achieved record high results in terms of sales and operating profit in 2025, fueled by growing demand for artificial intelligence (AI)...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Korea Value Up Index - Surprising Inclusions and Exclusions

There are many surprising inclusions and exclusions in the Korea Value Up Index. We provide 30 companies that are surprising inclusions and 10...

Douglas Kim

Asian Equities: Korea - If Not Memory, Then What?

​KR memory giants have driven equity crash, but many non-tech firms show strong growth, cheap valuation, healthy balance sheets & EPS upgrades. We...

Manishi Raychaudhuri

2026 High Conviction Idea: SK Inc

SK Inc (034730 KS) just announced that it will cancel about 20% of its outstanding shares, representing 4.8 trillion won ($3.3 billion). This is...

Douglas Kim

SK Inc: Selling 1.25 Trillion Won Worth of SK Biopharm Through a PRS Contract

SK Inc (034730 KS) announced that it plans to sell about 1.25 trillion won worth of its stake (13.94%) in SK Biopharmaceuticals (326030 KS) through...

Douglas Kim

SK Hynix: Record Results, Cancellation of Treasury Shares, & Start of an AI Solution Co in the US

SK Hynix achieved record high results in terms of sales and operating profit in 2025, fueled by growing demand for artificial intelligence (AI)...

Douglas Kim

KR memory giants have driven equity crash, but many non-tech firms show strong growth, cheap valuation, healthy balance sheets & EPS upgrades. We...