Daily Brief Equity Bottom-Up: Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 4Q 2026 and more

• In this insight, I discuss numerous gap trade opportunities involving Korean preferred and common shares in 4Q 2026.
• Preferred companies’ share price discount (relative to the common shares) on the 27 pairs below was 46.9% as of 1 October 2026, down slightly from 47.2% on 3 July 2026. 
• There has been an increasing number of pairs (such as Samsung Electronics pref) where the preferred shares are starting to outperform their common share counterparts in the past three months. 

• PwC has declined to sign Nidec’s accounts for a second consecutive year — a disclaimer of opinion that leaves ¥1.1tn of disclosed losses technically unaudited and unverified.
• The 28 October TSE Special Alert review is a hard binary: resolution or formal delisting proceedings. Institutional mandates requiring audited financials cannot engage until PwC signs.
• AVOID / REDUCE maintained; FV ¥2,000 on 8x normalised FY2027E EBITDA, discounted 30% for audit and delisting risk. The loss quantum is known — the audit gap is not.

• Multi-Chem is a founder-led cybersecurity and IT infrastructure distributor benefiting from long-term growth in cybersecurity, cloud infrastructure and digital transformation spending across the Asia-Pacific region.
• Through its M.Tech subsidiary, the company has built a meaningful position in value-added IT distribution, supported by established vendor relationships, regional scale, recurring customer demand and a strong net cash balance sheet.
• The company has delivered consistent profitability, healthy returns on capital and strong cash generation, supporting a solid record of shareholder returns.

• From January 1, 2001 to September 29, 2026, Monster returned about 2,070×, topping a leaderboard of great compounders that includes Nvidia and Apple, all of them capital-light.
• Its moat is a habit with no technology cycle to re-win, built through twice Red Bull’s volume for the price, upgraded distribution and Coca-Cola’s partnership.
• Earnings did the work: after re-rating to about 34× by 2006, returns tracked per-share earnings; at roughly 38× today, owners need long, durable growth.

• Advanced Micro Devices is pushing deeper into artificial intelligence after agreeing to acquire World Labs, the AI research company co-founded by Fei-Fei Li, in an $8.2 billion all-stock transaction.
• World Labs develops frontier AI models capable of generating and reasoning about three-dimensional environments, potentially extending AMD’s ambitions beyond supplying processors and accelerators into the model, software, and physical-AI layers of the computing stack.
• The transaction comes as AMD’s AI business is scaling rapidly: second-quarter 2026 revenue rose 50% year over year to a record $11.5 billion, while Data Center revenue more than doubled to $6.7 billion and represented 58% of company sales.

• We forecast 3Q26E OP ₩108.2T, above the consensus range ₩104–107T. Micron’s +30% NAND pricing skews risk upward to ₩117T; the won costs ₩6T. Ignore an FX revenue miss.
• January’s ₩55–75T cash allocation is the real catalyst, not the 3Q26 prelim. Our FCF math points to ₩110T; share cancellation beats dividends for EPS. 
• Our forecasts is FY26E OP ₩373T, EPS ₩44,961; FY27E EPS ₩55,055. TP ₩400,000 held at 7.3x FY27E, the bottom of Samsung’s 10-year band. Maintain BULLISH.

• OKP Holdings (OKP) is a cash-rich, execution-led play on Singapore’s public infrastructure pipeline.

• A decade of specialising in LTA commuter and cycling path works has lifted gross margins from single digits to above 30%, and the order book reached S$797.9m, ~3.4x trailing revenue.

• The shares have re-rated sharply since 2024, but ~S$172.3m of net cash as at 30 June 2026 still underpins modest valuations, ex-cash.

• NVIDIA Corporation (NVDA US) maintains an industry-defining monopoly in accelerated computing and artificial intelligence infrastructure, driven by its proprietary full-stack hardware-software architecture spanning GPUs, custom networking fabric (NVLink, InfiniBand, Spectrum-X), and the ubiquitous CUDA developer ecosystem.
• Financial execution exhibits historic operating leverage and scale, with annual revenue expanding from $60.9B in FY2024 to $215.9B in FY2026 (a 100.05% 3-year CAGR) and net income reaching $120.1B, generating $96.7B in annual free cash flow while maintaining gross margins above 71%.
• While datacenter physical constraints (power grid capacity, thermal dissipation) and geopolitical trade controls present structural hurdles, strong secular tailwinds across hyperscale generative computing, sovereign AI deployments, and enterprise software monetization provide long-term earnings visibility.

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• Off-Balance Sheet Deleveraging via Brahma AI: The $150 million Brahma AI transaction led by Multiples PE at a $2 billion valuation is fundamentally a structured balance sheet play. By reducing voting rights from 89.27% to 24.99% while retaining a 65.67% economic stake, Prime Focus successfully deconsolidates a highly cash-burn-heavy AI R&D unit from its heavily leveraged financials, transferring assets off-balance sheet without losing long-term upside.
• Complex Web of Related-Party Transactions (RPTs): To package Brahma AI, Prime Focus executed a massive series of internal restructurings, including selling $111 million of DNEG assets to Brahma and executing slump sales of PFT units. These RPTs, approved at the September 30, 2026 AGM, raise transfer pricing and tax-leakage risks, signaling that the parent continues to use intercompany transfers to manage liquidity and valuations across jurisdictions.
• Liquidity Overhang and Capital Infusion Risks: Despite resolving the ₹408 crore Raspalfa insolvency case in August 2026 and securing a ₹3,000 crore fundraising authorization, Prime Focus remains highly leveraged with ₹5,717 crore in total debt as of FY26. The company’s history of personal promoter guarantees and extreme liquidity management under pressure suggests any upcoming QIP or debt issuance will be expensive and dilutive to minority shareholders.

• Founded 2014, KOSDAQ-listed 2025; full-stack mobile ad platform                         
• Korea’s only listed GCPP: Google’s top-tier official partner
• Revenue from new RTB-based platforms up 214% YoY in 1Q2