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>I recommend focusing on the ceiling regression play. In this regard, SK Innovation has the most notable regression spread, and we should use Samsung SDI as a hedge against it.</li>
<li>As for constituent change, SungEel HiTech is firmly positioned with a market cap of ₩1.34T and a float rate of 50%. And it belongs to the Waste batteries keyword.</li>
<li>But, it is unclear whether SungEel will be in the top 25 in scoring. We should patiently wait until confirmation as it's still a worthy candidate requiring our attention.</li>
</ul>


I recommend focusing on the ceiling regression play. In this regard, SK Innovation has the most notable regression spread, and we should use Samsung SDI as a hedge against it.
As for constituent change, SungEel HiTech is firmly positioned with a market cap of ₩1.34T and a float rate of 50%. And it belongs to the Waste batteries keyword.
But, it is unclear whether SungEel will be in the top 25 in scoring. We should patiently wait until confirmation as it's still a worthy candidate requiring our attention.


KODEX FnGuide Battery ETF Rebalancing Checkup

<ul>
<li>So far, SungEel is in the top 50, currently ranked 38th. Given that the gap with 50th place is more than ₩100B, its early entry in December is very likely.</li>
<li>Rsupport is currently at the bottom with an average daily market cap of ₩0.27T. However, there are four other names under ₩0.30T, so we have to wait a little longer.</li>
<li>SungEel can expect a passive inflow equivalent to 1.0x ADTV. Combined with potential passive inflows from the local battery ETFs, it will form a quite solid flow momentum until December.</li>
</ul>


So far, SungEel is in the top 50, currently ranked 38th. Given that the gap with 50th place is more than ₩100B, its early entry in December is very likely.
Rsupport is currently at the bottom with an average daily market cap of ₩0.27T. However, there are four other names under ₩0.30T, so we have to wait a little longer.
SungEel can expect a passive inflow equivalent to 1.0x ADTV. Combined with potential passive inflows from the local battery ETFs, it will form a quite solid flow momentum until December.


SungEel HiTech: KOSDAQ 150 Early Entry in December

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>SOCAR announced its IPO book building results. The IPO price has been determined at 28,000 won (18% lower than the low end of the IPO range).</li>
<li>Our base case target price for SOCAR is 27,176 won, which is 3% lower than the IPO price of 28,000 won. </li>
<li>We remain Negative on this IPO due to lack of upside. There were 348 companies involved in the IPO survey with the final demand ratio of 56 to 1.</li>
</ul>


SOCAR announced its IPO book building results. The IPO price has been determined at 28,000 won (18% lower than the low end of the IPO range).
Our base case target price for SOCAR is 27,176 won, which is 3% lower than the IPO price of 28,000 won. 
We remain Negative on this IPO due to lack of upside. There were 348 companies involved in the IPO survey with the final demand ratio of 56 to 1.


<ul>
<li>We discuss end of the mandatory lock-up periods for 49 stocks in Korea in August 2022, among which 3 are in KOSPI and 46 are in KOSDAQ.</li>
<li>These 49 stocks on average could be subject to further selling pressures in August and could underperform relative to the market. </li>
<li>Among these 49 stocks, the top five market cap stocks include Wemade, HPSP, Sungeel Hitech, Wemade Max, and Eoflow. These companies could be exposed to greater selling pressures in August. </li>
</ul>


We discuss end of the mandatory lock-up periods for 49 stocks in Korea in August 2022, among which 3 are in KOSPI and 46 are in KOSDAQ.
These 49 stocks on average could be subject to further selling pressures in August and could underperform relative to the market. 
Among these 49 stocks, the top five market cap stocks include Wemade, HPSP, Sungeel Hitech, Wemade Max, and Eoflow. These companies could be exposed to greater selling pressures in August. 


End of Mandatory Lock-Up Periods for 49 Companies in Korea in August 2022

Soosan Industries / Equity Capital Markets

<ul>
<li>Soosan Industries had disappointing IPO book building results. The demand ratio from the institutional investors was 130 to 1 which is lower than some of the recent IPOs. </li>
<li>The IPO price has been determined at 35,000 won. Soosan Industries is one of the leading companies in Korea for providing maintenance services for nuclear power plant equipment in Korea.</li>
<li>Our base case valuation of Soosan Industries is target price of 56,383 won per share, which is 61% higher than the IPO price of 35,000 won. </li>
</ul>


Soosan Industries had disappointing IPO book building results. The demand ratio from the institutional investors was 130 to 1 which is lower than some of the recent IPOs. 
The IPO price has been determined at 35,000 won. Soosan Industries is one of the leading companies in Korea for providing maintenance services for nuclear power plant equipment in Korea.
Our base case valuation of Soosan Industries is target price of 56,383 won per share, which is 61% higher than the IPO price of 35,000 won. 


Soosan Industries IPO Book Building Results

South Korea

Sungeel Hitech Co., Ltd. operates as a leading secondary battery recycling company. The Company provides lithium ion battery recycling, sustainable rechargeable battery recycling, waste batteries full circulatory recycling, and circulation services. Sungeel Hitech markets its products worldwide.

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Sungeel Hitech (365340 KS)

KODEX FnGuide Battery ETF Rebalancing Checkup

This post previews the KODEX FnGuide Secondary Battery ETF rebalancing in September. It is Korea's largest-AUM local battery ETF.

Sanghyun Park

SungEel HiTech: KOSDAQ 150 Early Entry in December

This post investigates the possibility of SungEel HiTech's early entry to the KOSDAQ 150 at the upcoming rebalancing in December.

Sanghyun Park

SOCAR IPO Book Building Results

SOCAR announced its IPO book building results. The IPO price has been determined at 28,000 won (18% lower than the low end of the IPO range).

Douglas Kim

End of Mandatory Lock-Up Periods for 49 Companies in Korea in August 2022

We discuss end of the mandatory lock-up periods for 49 stocks in Korea in August 2022, among which 3 are in KOSPI and 46 are in KOSDAQ.

Douglas Kim

Soosan Industries IPO Book Building Results

Soosan Industries had disappointing IPO book building results. Our base case valuation is target price of 56,383 won per share, which is 61% higher...

Douglas Kim

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