Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Dec 6th which has an aggregated holding worth USD463.4bn.</li>
<li>We estimate that foreign flows to be outflows of USD711mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in SK Hynix, Naver, Samsung Electronics, KB Financial.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Dec 6th which has an aggregated holding worth USD463.4bn.
We estimate that foreign flows to be outflows of USD711mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in SK Hynix, Naver, Samsung Electronics, KB Financial.


KRX Foreign Holding Weekly (Dec 6th): SK Hynix, Naver, Samsung Electronics, KB Financial

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

<ul>
<li>Headline NPL figures at <a href="https://www.smartkarma.com/entities/kb-financial-group-inc" target="_blank" data-smartkarma-citation="entities:718:1" rel="noopener">KB Financial (105560 KS)</a> are already of major concern rising by 49% in the past year to 3Q24</li>
<li>Granular loan classification data is of even greater concern, where substandard loans are up from KRW1,153bn to KRW1,715bn over the same period</li>
<li>This more benign bucket of NPLs well overshadows loss loans, can migration can mean a substantial rise in credit costs</li>
</ul>


Headline NPL figures at KB Financial (105560 KS) are already of major concern rising by 49% in the past year to 3Q24
Granular loan classification data is of even greater concern, where substandard loans are up from KRW1,153bn to KRW1,715bn over the same period
This more benign bucket of NPLs well overshadows loss loans, can migration can mean a substantial rise in credit costs


KB Financial - NPLs from KRW2.1tr to KRW3.1tr YoY Vs +6% Loans. Substandard Loans: Big Issue

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Nov 22nd which has an aggregated holding worth USD491.7bn.</li>
<li>We estimate that foreign flows to be outflows of USD772mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Naver, SK Hynix, Samsung Electronics.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Nov 22nd which has an aggregated holding worth USD491.7bn.
We estimate that foreign flows to be outflows of USD772mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Naver, SK Hynix, Samsung Electronics.


KRX Foreign Holding Weekly (Nov 22nd): Naver, SK Hynix, Samsung Electronics

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>Profitability ratio trends were mixed in 3Q24, with most of the South Korean banks seeing improved post-provision returns to September-end, helped by generally lower cost of risk trends</li>
<li>Hana Financial remains our big-cap pick for its attractive valuations, PEG and equity risk premia; there is potential for its inclusion in a planned Value-Up index rebalancing scheduled for December</li>
<li>Among the smaller caps, Woori stands out in terms of valuation, PEG ratio, credit quality and it has registered improving pre- provision profitability and efficiency ratio</li>
</ul>


Profitability ratio trends were mixed in 3Q24, with most of the South Korean banks seeing improved post-provision returns to September-end, helped by generally lower cost of risk trends
Hana Financial remains our big-cap pick for its attractive valuations, PEG and equity risk premia; there is potential for its inclusion in a planned Value-Up index rebalancing scheduled for December
Among the smaller caps, Woori stands out in terms of valuation, PEG ratio, credit quality and it has registered improving pre- provision profitability and efficiency ratio


South Korean Banks; Hana Financial (086790 KS) And Woori (316140 KS) Remain Our Key Positive Picks

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

Event-Driven

<ul>
<li>12 ETFs (9 passive and 3 active) and 1 ETN tracking the Korea Value-Up Index will start trading on the KRX on 4 November.</li>
<li>At listing, the combined AUM across the 13 products is KRW 511bn (US$370m). So not a lot of impact on the stocks in the index.</li>
<li>The expectation is that there will be a lot of money that starts to track the index after the ETF listing. Looking at Japan, that is not a success story.</li>
</ul>


12 ETFs (9 passive and 3 active) and 1 ETN tracking the Korea Value-Up Index will start trading on the KRX on 4 November.
At listing, the combined AUM across the 13 products is KRW 511bn (US$370m). So not a lot of impact on the stocks in the index.
The expectation is that there will be a lot of money that starts to track the index after the ETF listing. Looking at Japan, that is not a success story.


Korea Value-Up ETFs: Listing on 4 Nov with US$370m AUM

South Korea

Woori Financial Group Inc. provides commercial banking services. The Company offers deposit services, loan services, bill services, settlement services, credit card, international, online banking, and other related services. Woori Financial Group also operates banking and retail banking businesses.

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Woori Financial Group (316140 KS)

KRX Foreign Holding Weekly (Dec 6th): SK Hynix, Naver, Samsung Electronics, KB Financial

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in SK Hynix, Naver, Samsung Electronics, KB Financial.

Ke Yan, CFA, FRM

KB Financial - NPLs from KRW2.1tr to KRW3.1tr YoY Vs +6% Loans. Substandard Loans: Big Issue

KB Financial shows relatively benign credit costs, but NPLs are surging, and its substandard loan growth is especially high. Risks remain for much...

Daniel Tabbush

KRX Foreign Holding Weekly (Nov 22nd): Naver, SK Hynix, Samsung Electronics

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Naver, SK Hynix, Samsung Electronics.

Ke Yan, CFA, FRM

South Korean Banks; Hana Financial (086790 KS) And Woori (316140 KS) Remain Our Key Positive Picks

Among South Korean banks, Hana and Woori stand out; attractively valued Hana has potential for inclusion in a planned Value-Up index rebalancing,...

Victor Galliano

Korea Value-Up ETFs: Listing on 4 Nov with US$370m AUM

12 ETFs (9 passive and 3 active) and 1 ETN tracking the Korea Value-Up Index will start trading on the KRX on 4 November. Total assets at launch...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KRX Foreign Holding Weekly (Dec 6th): SK Hynix, Naver, Samsung Electronics, KB Financial

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in SK Hynix, Naver, Samsung Electronics, KB Financial.

Ke Yan, CFA, FRM

KB Financial - NPLs from KRW2.1tr to KRW3.1tr YoY Vs +6% Loans. Substandard Loans: Big Issue

KB Financial shows relatively benign credit costs, but NPLs are surging, and its substandard loan growth is especially high. Risks remain for much...

Daniel Tabbush

KRX Foreign Holding Weekly (Nov 22nd): Naver, SK Hynix, Samsung Electronics

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Naver, SK Hynix, Samsung Electronics.

Ke Yan, CFA, FRM

South Korean Banks; Hana Financial (086790 KS) And Woori (316140 KS) Remain Our Key Positive Picks

​Among South Korean banks, Hana and Woori stand out; attractively valued Hana has potential for inclusion in a planned Value-Up index rebalancing,...

Victor Galliano

Korea Value-Up ETFs: Listing on 4 Nov with US$370m AUM

12 ETFs (9 passive and 3 active) and 1 ETN tracking the Korea Value-Up Index will start trading on the KRX on 4 November. Total assets at launch...

Brian Freitas

Among South Korean banks, Hana and Woori stand out; attractively valued Hana has potential for inclusion in a planned Value-Up index rebalancing,...