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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

We are half way through the review period for the December rebalance of the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a>. The Korea Exchange (KRX) will announce the results of the December 2021 review in November and the constituent changes will be effective after the close of trading on 9 December.At the current time we see 15 potential changes to the index in December.The potential inclusions are <a href="https://www.smartkarma.com/entities/eubiologics-co-ltd" target="_blank" data-smartkarma-citation="entities:23739:1" rel="noopener">Eubiologics (206650 KS)</a>, Cellid (299660 KS), <a href="https://www.smartkarma.com/entities/nanos-co-ltd" target="_blank" data-smartkarma-citation="entities:16796:1" rel="noopener">Nanos Co Ltd (151910 KS)</a>, <a href="https://www.smartkarma.com/entities/access-bio-inc-kdr" target="_blank" data-smartkarma-citation="entities:5729:1" rel="noopener">Access Bio Inc (950130 KS)</a>, <a href="https://www.smartkarma.com/entities/huons-co-ltd" target="_blank" data-smartkarma-citation="entities:16275:1" rel="noopener">Huons Co Ltd (084110 KS)</a>, <a href="https://www.smartkarma.com/entities/wonik-qnc-corp" target="_blank" data-smartkarma-citation="entities:6828:1" rel="noopener">Wonik QnC Corp (074600 KS)</a>, <a href="https://www.smartkarma.com/entities/komico-ltd" target="_blank" data-smartkarma-citation="entities:24033:1" rel="noopener">KoMiCo Ltd. (183300 KS)</a>, <a href="https://www.smartkarma.com/entities/kona-i-co-ltd" target="_blank" data-smartkarma-citation="entities:19695:1" rel="noopener">Kona I Co Ltd (052400 KS)</a>, <a href="https://www.smartkarma.com/entities/tk-chemical-corp" target="_blank" data-smartkarma-citation="entities:13428:1" rel="noopener">Tk Chemical (104480 KS)</a>, GiantStep (289220KS), <a href="https://www.smartkarma.com/entities/saraminhr-co-ltd" target="_blank" data-smartkarma-citation="entities:8494:1" rel="noopener">SaraminHR (143240 KS)</a>, <a href="https://www.smartkarma.com/entities/interpark-holdings-corp" target="_blank" data-smartkarma-citation="entities:12073:1" rel="noopener">Interpark Holdings (035080 KS)</a>, <a href="https://www.smartkarma.com/entities/dk-d-i-co-ltd" target="_blank" data-smartkarma-citation="entities:9948:1" rel="noopener">Dk D&amp;I Co Ltd (033310 KS)</a>, <a href="https://www.smartkarma.com/entities/aptc-co-ltd" target="_blank" data-smartkarma-citation="entities:27355:1" rel="noopener">APTC Co Ltd (089970 KS)</a> and Aptabio Therapeutics (293780 KS).The potential deletions are <a href="https://www.smartkarma.com/entities/unison-co-ltd-south-korea" target="_blank" data-smartkarma-citation="entities:18617:1" rel="noopener">Unison Co Ltd (018000 KS)</a>, <a href="https://www.smartkarma.com/entities/advanced-process-systems-corporation" target="_blank" data-smartkarma-citation="entities:24087:1" rel="noopener">Advanced Process Systems (265520 KS)</a>, <a href="https://www.smartkarma.com/entities/winix-inc" target="_blank" data-smartkarma-citation="entities:19972:1" rel="noopener">Winix Inc (044340 KS)</a>, <a href="https://www.smartkarma.com/entities/telcon-inc" target="_blank" data-smartkarma-citation="entities:15231:1" rel="noopener">Telcon Inc (200230 KS)</a>, <a href="https://www.smartkarma.com/entities/ubiquoss-inc" target="_blank" data-smartkarma-citation="entities:14341:1" rel="noopener">Ubiquoss Holding (078070 KS)</a>, <a href="https://www.smartkarma.com/entities/danawa-co-ltd" target="_blank" data-smartkarma-citation="entities:7191:1" rel="noopener">Danawa Co Ltd (119860 KS)</a>, <a href="https://www.smartkarma.com/entities/icure-pharm-inc" target="_blank" data-smartkarma-citation="entities:27142:1" rel="noopener">Icure Pharm Inc (175250 KS)</a>, <a href="https://www.smartkarma.com/entities/wisol-co-ltd" target="_blank" data-smartkarma-citation="entities:14463:1" rel="noopener">Wisol Co Ltd (122990 KS)</a>, <a href="https://www.smartkarma.com/entities/spigen-korea-co-ltd" target="_blank" data-smartkarma-citation="entities:9852:1" rel="noopener">Spigen Korea (192440 KS)</a>, <a href="https://www.smartkarma.com/entities/dongkuk-structures-constru" target="_blank" data-smartkarma-citation="entities:20412:1" rel="noopener">Dongkuk Structures &amp; Constru (100130 KS)</a>, <a href="https://www.smartkarma.com/entities/lemon-co-ltd" target="_blank" data-smartkarma-citation="entities:28841:1" rel="noopener">Lemon Co Ltd (294140 KQ)</a>, <a href="https://www.smartkarma.com/entities/g-treebnt-co-ltd" target="_blank" data-smartkarma-citation="entities:1933:1" rel="noopener">G Treebnt (115450 KS)</a> , <a href="https://www.smartkarma.com/entities/toptec-co-ltd" target="_blank" data-smartkarma-citation="entities:7332:1" rel="noopener">Toptec Co Ltd (108230 KS)</a>, <a href="https://www.smartkarma.com/entities/daea-ti-co-ltd" target="_blank" data-smartkarma-citation="entities:1473:1" rel="noopener">Daea Ti Co Ltd (045390 KS)</a> and <a href="https://www.smartkarma.com/entities/optoelectronics-solutions-co" target="_blank" data-smartkarma-citation="entities:2098:1" rel="noopener">Optoelectronics Solutions Co (138080 KS)</a>.There are 6 potential inclusions and 13 potential deletions that have over 2 days of ADV to trade from passive funds.With short selling only permitted on current <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> constituents, the potential inclusions have outperformed the exclusions and we expect this to continue. Short selling has picked up significantly on quite a few potential deletions and kept the stocks under pressure.

We are half way through the review period for the December rebalance of the KOSDAQ 150 Index (KOSDQ150 INDEX). The Korea Exchange (KRX) will announce the results of the December 2021 review in November and the constituent changes will be effective after the close of trading on 9 December.At the current time we see 15 potential changes to the index in December.The potential inclusions are Eubiologics (206650 KS), Cellid (299660 KS), Nanos Co Ltd (151910 KS), Access Bio Inc (950130 KS), Huons Co Ltd (084110 KS), Wonik QnC Corp (074600 KS), KoMiCo Ltd. (183300 KS), Kona I Co Ltd (052400 KS), Tk Chemical (104480 KS), GiantStep (289220KS), SaraminHR (143240 KS), Interpark Holdings (035080 KS), Dk D&amp;I Co Ltd (033310 KS), APTC Co Ltd (089970 KS) and Aptabio Therapeutics (293780 KS).The potential deletions are Unison Co Ltd (018000 KS), Advanced Process Systems (265520 KS), Winix Inc (044340 KS), Telcon Inc (200230 KS), Ubiquoss Holding (078070 KS), Danawa Co Ltd (119860 KS), Icure Pharm Inc (175250 KS), Wisol Co Ltd (122990 KS), Spigen Korea (192440 KS), Dongkuk Structures &amp; Constru (100130 KS), Lemon Co Ltd (294140 KQ), G Treebnt (115450 KS) , Toptec Co Ltd (108230 KS), Daea Ti Co Ltd (045390 KS) and Optoelectronics Solutions Co (138080 KS).There are 6 potential inclusions and 13 potential deletions that have over 2 days of ADV to trade from passive funds.With short selling only permitted on current KOSDAQ 150 Index (KOSDQ150 INDEX) constituents, the potential inclusions have outperformed the exclusions and we expect this to continue. Short selling has picked up significantly on quite a few potential deletions and kept the stocks under pressure.

KOSDAQ150 Index Rebalance Preview: Inclusions Outperforming as Short Sell Ban Helps

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

The Korea Exchange announced its KOSDAQ150 and KRX300 indices rebalances today. There were 17 new additions and 17 deletions for KOSDAQ150. Most of the stocks that were expected to be included in KOSDAQ 150 were officially included in the rebalance. However there were a few surprises. For example <a href="https://www.smartkarma.com/entities/nanos-co-ltd" target="_blank" data-smartkarma-citation="entities:16796:1" rel="noopener">Nanos Co Ltd (151910 KS),</a>which was one of the stocks that was expected to be included in KOSDAQ150, did not get included in this indext this time. On the other hand, the following stocks including <a href="https://www.smartkarma.com/entities/sang-a-frontec-co-ltd" target="_blank" data-smartkarma-citation="entities:20692:1" rel="noopener">Sang A Frontec (089980 KS)</a>, Novarex (194700 KS(, CIS (222080 KS), MedPacto (215980 KS), <a href="https://www.smartkarma.com/entities/koreacenter-com-co-ltd" target="_blank" data-smartkarma-citation="entities:28329:1" rel="noopener">Koreacenter.com Co Ltd (290510 KS)</a>, and Soulbrain (357780 KS) which were not on the top of the lists of getting selected into the KOSDAQ150 index by the locals, were formally selected be part of the new KOSDAQ150 inclusions.  The Korea Exchange also made changes to the KRX300 index. Although the KRX300 index is not currently as important as KOSPI200 and KOSDAQ150 indices, it is increasingly gaining in importance among the local institutional investors. The KRX300 had 33 new additions and 35 deletions.

The Korea Exchange announced its KOSDAQ150 and KRX300 indices rebalances today. There were 17 new additions and 17 deletions for KOSDAQ150. Most of the stocks that were expected to be included in KOSDAQ 150 were officially included in the rebalance. However there were a few surprises. For example Nanos Co Ltd (151910 KS),which was one of the stocks that was expected to be included in KOSDAQ150, did not get included in this indext this time. On the other hand, the following stocks including Sang A Frontec (089980 KS), Novarex (194700 KS(, CIS (222080 KS), MedPacto (215980 KS), Koreacenter.com Co Ltd (290510 KS), and Soulbrain (357780 KS) which were not on the top of the lists of getting selected into the KOSDAQ150 index by the locals, were formally selected be part of the new KOSDAQ150 inclusions.  The Korea Exchange also made changes to the KRX300 index. Although the KRX300 index is not currently as important as KOSPI200 and KOSDAQ150 indices, it is increasingly gaining in importance among the local institutional investors. The KRX300 had 33 new additions and 35 deletions. 

KOSDAQ150 and KRX300 Indices Rebalances (Overlapping Additions & Deletions)

Equity Capital Markets

<div class="content-highlight">Apple, Orange, Blackberry......and now Lemon. Yes, a Korean company called <a href="https://www.smartkarma.com/entities/lemon-co-ltd" target="_blank" data-smartkarma-citation="entities:28841:1" rel="noopener">Lemon (294140 KQ) </a>is getting ready to complete an IPO at the end of this month, which is likely to receive exceptional demand. The company's core products include EMI (electromagnetic interference) shielding products, Nano textile membrane, and protective masks. </div>The book-building for the institutional investors will start next week on 12 February 2020. The lead underwriters of this deal include Mirae Asset Daewoo Securities and Hyundai Motor Securities. The IPO price range is from 6,200 won to 7,200 won. The IPO deal size is from $21 million to $25 million.The company's masks (dust protection and regular protective), which were launched in December 2019 has been very timely since there has been a HUGE demand for high-quality masks in Korea, China, and all around the world due to the rapid spread of the novel Coronavirus.<div class="content-highlight">According to Lemon, the company has been operating its masks manufacturing facility at <a href="http://www.sentv.co.kr/news/view/567881" target="_blank" rel="noopener">100% capacity utilization</a> since February 3rd and can produce 4 million mask units per month. The company has already received 12 million mask units in new orders so it is fully booked.</div>

Apple, Orange, Blackberry......and now Lemon. Yes, a Korean company called Lemon (294140 KQ) is getting ready to complete an IPO at the end of this month, which is likely to receive exceptional demand. The company's core products include EMI (electromagnetic interference) shielding products, Nano textile membrane, and protective masks. The book-building for the institutional investors will start next week on 12 February 2020. The lead underwriters of this deal include Mirae Asset Daewoo Securities and Hyundai Motor Securities. The IPO price range is from 6,200 won to 7,200 won. The IPO deal size is from $21 million to $25 million.The company's masks (dust protection and regular protective), which were launched in December 2019 has been very timely since there has been a HUGE demand for high-quality masks in Korea, China, and all around the world due to the rapid spread of the novel Coronavirus.According to Lemon, the company has been operating its masks manufacturing facility at 100% capacity utilization since February 3rd and can produce 4 million mask units per month. The company has already received 12 million mask units in new orders so it is fully booked.

Equity Bottom-Up

Toptec Co Ltd (108230 KS) is a leading factory automation equipment manufacturer in Korea with a market cap of 1.05 trillion won. There is no sell-side coverage on this stock right now. <a href="https://www.smartkarma.com/entities/7332" target="_blank" data-smartkarma-citation="entities:7332:1">Toptec Co Ltd (108230 KS)</a> shares have been on a rollercoaster ride in the past week. On January 15th, there were media accounts that mentioned SK Telecom may be interested in acquiring Toptec. On January 16th, SK Telecom mentioned that it has been reviewing Toptec as a potential M&amp;A candidate. On January 17th, SK…

Toptec Co Ltd (108230 KS) is a leading factory automation equipment manufacturer in Korea with a market cap of 1.05 trillion won. There is no sell-side coverage on this stock right now. Toptec Co Ltd (108230 KS) shares have been on a rollercoaster ride in the past week. On January 15th, there were media accounts that mentioned SK Telecom may be interested in acquiring Toptec. On January 16th, SK Telecom mentioned that it has been reviewing Toptec as a potential M&amp;A candidate. On January 17th, SK…

Toptec: A Leading Factory Automation Equipment Player in Korea

Thematic (Sector/Industry)

<ul><li><div class="content-highlight">In this report, we have identified more than 40 stocks in the Korean stock market that have announced share buyback programs in the past four months. Many of these stocks that have been buying back their shares have been outperforming the market in recent weeks. Share buybacks continue to be an "alpha generating" catalyst in the Korean stock market. Time and again, companies that buyback stocks in Korea tend to outperform the market.</div></li></ul><ul><li>In terms of size, the share buyback announcement by Samsung…</li></ul>

In this report, we have identified more than 40 stocks in the Korean stock market that have announced share buyback programs in the past four months. Many of these stocks that have been buying back their shares have been outperforming the market in recent weeks. Share buybacks continue to be an "alpha generating" catalyst in the Korean stock market. Time and again, companies that buyback stocks in Korea tend to outperform the market.In terms of size, the share buyback announcement by Samsung…

Alpha Generation from Share Buybacks in Korea (August - November 2017)

South Korea

TOPTEC Co., Ltd. manufactures factory automated systems mainly used in the manufacturing process of Flat Panel Displays, such as Liquid Crystal Displays, Plasma Display Panels, and Organic Light Emitting Diodes.

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Toptec Co Ltd (108230 KS)

KOSDAQ150 Index Rebalance Preview: Inclusions Outperforming as Short Sell Ban Helps

Halfway through the review period, we see 15 potential changes to the index. The potential inclusions are outperforming the exclusions as short...

Brian Freitas

KOSDAQ150 and KRX300 Indices Rebalances (Overlapping Additions & Deletions)

We highlight the KOSDAQ150 and KRX300 indices rebalances. There are some interesting new names, especially among those that are over lapping in...

Douglas Kim

Lemon IPO Preview

Apple, Orange, Blackberry......and now Lemon. Yes, a Korean company called Lemon (294140 KQ) is getting ready to complete an IPO at the end of this...

Douglas Kim

Toptec: A Leading Factory Automation Equipment Player in Korea

Toptec Co Ltd (108230 KS) is a leading factory automation equipment manufacturer in Korea with a market cap of 1.05 trillion won. There is no...

Douglas Kim

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KOSDAQ150 Index Rebalance Preview: Inclusions Outperforming as Short Sell Ban Helps

Halfway through the review period, we see 15 potential changes to the index. The potential inclusions are outperforming the exclusions as short...

Brian Freitas

KOSDAQ150 and KRX300 Indices Rebalances (Overlapping Additions & Deletions)

We highlight the KOSDAQ150 and KRX300 indices rebalances. There are some interesting new names, especially among those that are over lapping in...

Douglas Kim

Lemon IPO Preview

Apple, Orange, Blackberry......and now Lemon. Yes, a Korean company called Lemon (294140 KQ) is getting ready to complete an IPO at the end of this...

Douglas Kim

Toptec: A Leading Factory Automation Equipment Player in Korea

Toptec Co Ltd (108230 KS) is a leading factory automation equipment manufacturer in Korea with a market cap of 1.05 trillion won. There is no...

Douglas Kim

Alpha Generation from Share Buybacks in Korea (August - November 2017)

In this report, we have identified more than 40 stocks in the Korean stock market that have announced share buyback programs in the past four...

Douglas Kim