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>KMW replaces AfreecaTV in BBIG. There is no constituent change for Battery and Bio. Seojin and Intellion replace NHN KCP and Danal in Internet. Nexon Games replaces Devsisters in Game.</li>
<li>The effective date has been postponed to the 13th, and the ETF operators will conduct the rebalancing trading at the close tomorrow, the 8th.</li>
<li>Regarding relative passive impact, KMW and AfreecaTV should receive the most attention, and this pattern is already appearing today.</li>
</ul>


KMW replaces AfreecaTV in BBIG. There is no constituent change for Battery and Bio. Seojin and Intellion replace NHN KCP and Danal in Internet. Nexon Games replaces Devsisters in Game.
The effective date has been postponed to the 13th, and the ETF operators will conduct the rebalancing trading at the close tomorrow, the 8th.
Regarding relative passive impact, KMW and AfreecaTV should receive the most attention, and this pattern is already appearing today.


KRX K-New Deal Rebalancing: Official Results & Passive Flows

<ul>
<li>KMW is the most important name in this rebalancing. It will be a newcomer to the K-New Deal, replacing AfreecaTV for Top Three in INTERNET.</li>
<li>KMW's inflow will be very substantial at 8.60x ADTV, whereas AfreecaTV will suffer an outflow equivalent to 1.69x ADTV.</li>
<li>In addition, HLB will replace Hanmi Science, and Seojin System will take over Danal. Webzen also replaces Devsisters.</li>
</ul>


KMW is the most important name in this rebalancing. It will be a newcomer to the K-New Deal, replacing AfreecaTV for Top Three in INTERNET.
KMW's inflow will be very substantial at 8.60x ADTV, whereas AfreecaTV will suffer an outflow equivalent to 1.69x ADTV.
In addition, HLB will replace Hanmi Science, and Seojin System will take over Danal. Webzen also replaces Devsisters.


KRX K-New Deal September Rebalancing: Screening Results

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

Index Rebalance

<ul>
<li>The review period for the September rebalance of the KRX New Deal indices started on 1 May and will run till 29 July. Implementation is on 8 September.</li>
<li>
<a href="https://www.smartkarma.com/entities/intellian-technologies-inc" target="_blank" data-smartkarma-citation="entities:34895:1" rel="noopener">Intellian Technologies (189300 KS)</a> and <a href="https://www.smartkarma.com/entities/seojin-system-co-ltd" target="_blank" data-smartkarma-citation="entities:24032:1" rel="noopener">Seojin System Co, Ltd. (178320 KS)</a> could replace <a href="https://www.smartkarma.com/entities/danal-co-ltd" target="_blank" data-smartkarma-citation="entities:19682:1" rel="noopener">Danal Co Ltd (064260 KS)</a> and <a href="https://www.smartkarma.com/entities/kcp-co-ltd" target="_blank" data-smartkarma-citation="entities:16045:1" rel="noopener">Kcp Co Ltd (060250 KS)</a> in the Internet Index.</li>
<li>
<a href="https://www.smartkarma.com/entities/nexon-games-co-ltd" target="_blank" data-smartkarma-citation="entities:35967:1" rel="noopener">Nexon Games (225570 KS)</a> could replace <a href="https://www.smartkarma.com/entities/devsisters-co-ltd" target="_blank" data-smartkarma-citation="entities:14096:1" rel="noopener">Devsisters (194480 KS)</a> in the Game Index, and <a href="https://www.smartkarma.com/entities/kmw-co-ltd" target="_blank" data-smartkarma-citation="entities:2834:1" rel="noopener">KMW Co Ltd (032500 KS)</a> could replace <a href="https://www.smartkarma.com/entities/afreecatv-co-ltd" target="_blank" data-smartkarma-citation="entities:20163:1" rel="noopener">AfreecaTV (067160 KS)</a> in the BBIG Index.</li>
</ul>


The review period for the September rebalance of the KRX New Deal indices started on 1 May and will run till 29 July. Implementation is on 8 September.

Intellian Technologies (189300 KS) and Seojin System Co, Ltd. (178320 KS) could replace Danal Co Ltd (064260 KS) and Kcp Co Ltd (060250 KS) in the Internet Index.

Nexon Games (225570 KS) could replace Devsisters (194480 KS) in the Game Index, and KMW Co Ltd (032500 KS) could replace AfreecaTV (067160 KS) in the BBIG Index.


KRX New Deal Index Rebalance Preview: KMW Into BBIG to Drive Flows

<ul>
<li>The review period for the September rebalance of the KRX New Deal indices started on 1 May and will run till 31 July. Implementation is on 8 September.</li>
<li>
<a href="https://www.smartkarma.com/entities/intellian-technologies-inc" target="_blank" data-smartkarma-citation="entities:34895:1" rel="noopener">Intellian Technologies (189300)</a> could replace <a href="https://www.smartkarma.com/entities/danal-co-ltd" target="_blank" data-smartkarma-citation="entities:19682:1" rel="noopener">Danal Co Ltd (064260)</a> in the Internet index, while <a href="https://www.smartkarma.com/entities/kmw-co-ltd" target="_blank" data-smartkarma-citation="entities:2834:1" rel="noopener">KMW Co Ltd (032500 KS)</a> could replace <a href="https://www.smartkarma.com/entities/afreecatv-co-ltd" target="_blank" data-smartkarma-citation="entities:20163:1" rel="noopener">AfreecaTV (067160 KS)</a> in the top 3 index stocks.</li>
<li>
<a href="https://www.smartkarma.com/entities/nexon-games-co-ltd" target="_blank" data-smartkarma-citation="entities:35967:1" rel="noopener">Nexon Games (225570 KS)</a> could replace <a href="https://www.smartkarma.com/entities/devsisters-co-ltd" target="_blank" data-smartkarma-citation="entities:14096:1" rel="noopener">Devsisters (194480 KS)</a> in the Game Index, though the flows are small on the stocks given the small benchmarked AUM.</li>
</ul>


The review period for the September rebalance of the KRX New Deal indices started on 1 May and will run till 31 July. Implementation is on 8 September.

Intellian Technologies (189300) could replace Danal Co Ltd (064260) in the Internet index, while KMW Co Ltd (032500 KS) could replace AfreecaTV (067160 KS) in the top 3 index stocks.

Nexon Games (225570 KS) could replace Devsisters (194480 KS) in the Game Index, though the flows are small on the stocks given the small benchmarked AUM.


KRX New Deal Index Rebalance Preview: Buying on KMW; Selling on AfreecaTV

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>One Store revised its IPO filings, changing the comps but maintaining the same price range of 34,300 won to 41,700 won.</li>
<li>The bankers used new comps in the valuation analysis (Tencent, Naver, Kakao Corp, and Nexon). The P/S multiple is slightly higher than previously but IPO discount range is also higher.</li>
<li>Our target price of 48,713 won is 28% higher than the mid-point of the IPO price range of 38,000 won. </li>
</ul>


One Store revised its IPO filings, changing the comps but maintaining the same price range of 34,300 won to 41,700 won.
The bankers used new comps in the valuation analysis (Tencent, Naver, Kakao Corp, and Nexon). The P/S multiple is slightly higher than previously but IPO discount range is also higher.
Our target price of 48,713 won is 28% higher than the mid-point of the IPO price range of 38,000 won. 


One Store IPO: Changes Comps But Maintains Same IPO Price Range

South Korea

Soop Co., Ltd. offers new media platform services. The Company provides digital media storage, streaming, downloading, video on demand, advertising services, and other services. Soop offers services in South Korea.

Price Gauge
52-week Range	0.00 - 0.00
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Soop (067160 KS)

KRX K-New Deal Rebalancing: Official Results & Passive Flows

This post provides the official constituent change results of the KRX K-New Deal rebalancing in September and assesses the passive impacts of...

Sanghyun Park

KRX K-New Deal September Rebalancing: Screening Results

This post presents the screening results of the KRX K-New Deal rebalancing in September, as the screening period ended at the end of July.

Sanghyun Park

KRX New Deal Index Rebalance Preview: KMW Into BBIG to Drive Flows

We see 2 changes for the Internet Index and 1 for the Game Index. More importantly, KMW couple replace AfreecaTV in the BBIG Index and that will...

Brian Freitas

KRX New Deal Index Rebalance Preview: Buying on KMW; Selling on AfreecaTV

The September rebalance of the KRX New Deal Indices could see buying on KMW & selling on AfreecaTV. There will be other changes too but the impact...

Brian Freitas

One Store IPO: Changes Comps But Maintains Same IPO Price Range

The bankers used new comps in the OneStore IPO valuation analysis (Tencent, Naver, Kakao Corp, and Nexon). The P/S multiple is slightly higher than...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

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