In today’s briefing:
- Kangji Medical (9997 HK): Speedy Turnaround On Pre-Cons
- Potential Spillover Trades from Next Month’s KOSDAQ150 Weeklies Launch
- Tracing Korea’s Flow Dynamics: Short-Term Sector Rotation Plays
- Pop Mart (9992 HK): Index Inclusion & Beyond. Toy Craze or Emerging ACG Play?
- SK Chemicals: A Potential EB Issue of 240 Billion Won Using Its Stake in SK Bioscience
- Harim Holdings – EB Issue of Its Treasury Shares for 143 Billion Won
- MannKind’s Acquisition of scPharmaceuticals: Strategic CVR Valuation and FDA Approval Prospects for SCP-111
Kangji Medical (9997 HK): Speedy Turnaround On Pre-Cons
- Kangji Medical Instrument (9997 HK) announced last night all pre-cons have been squared away. That must be some kind of record to secure SAMR approval for a Hong Kong-listed privatisation.
- Back on the 12th August, Kangji Medical announced a less-than-ideal Offer, by way of a Scheme, from a consortium led by TPG and Qatar Investment Authority, together with the founders.
- What next? The Scheme Doc dispatch remains the 31st October, unless announced otherwise, as the Cayman Court is still on its six week “vacation”.
Potential Spillover Trades from Next Month’s KOSDAQ150 Weeklies Launch
- KRX plans to list KOSDAQ150 weekly options next month, likely October 27, and is lining up market makers to ensure two-way liquidity from day one.
- Early volumes for KOSDAQ150 weeklies will be thin, making MMs cautious, but some may step in despite risks.
- Early KOSDAQ150 weeklies could trigger spillover trades, as thin volumes and active MMs lead to IV–spot gaps, price dislocations, and triangular arbitrage opportunities.
Tracing Korea’s Flow Dynamics: Short-Term Sector Rotation Plays
- Korea’s seeing classic sector rotation: H1 hot money is exiting shipbuilding and defense ETFs, with 7% of AUM out in a week, as traders hunt the next wave of flows.
- Short-Term plays focus on two angles: policy-driven sectors like retail/dividends, and less-run names. Secondary batteries lead flows, topping local sector ETF net inflows lately.
- Sector rotation trades focus on Sept 11 rebalances: TIGER Secondary Battery TOP 10 and KRX Semis. Long-short setups on top names plus rotation flows could spark notable price moves.
Pop Mart (9992 HK): Index Inclusion & Beyond. Toy Craze or Emerging ACG Play?
- Pop Mart (9992 HK) will be added to both the Hang Seng Index (HSI) and the Hang Seng China Enterprises Index (HSCEI) — effective Monday, September 8, 2025.
- Beyond the tail winds from this technical upgrade, stock’s further upside rests on investor conviction on its potential to continue to deliver strong growth beyond the short term.
- Pop Mart’s near term growth rests on proving IP durability and executing global scale-up.
SK Chemicals: A Potential EB Issue of 240 Billion Won Using Its Stake in SK Bioscience
- Hankyung Business Daily reported today that SK Chemicals (285130 KS) is pursuing an issuance of exchangeable bonds (EB) worth 240 billion won using its stake in SK Bioscience (302440 KS).
- SK Chemicals has not officially announced its plans to issue such EB which is likely to have a positive impact on SK Chemicals and negative impact on SK Bioscience.
- SK Chemicals’ market cap is now 1.1 trillion won. Its 66.4% stake in SK Bioscience is worth 2.6 trillion won.
Harim Holdings – EB Issue of Its Treasury Shares for 143 Billion Won
- Harim Holdings (003380 KS) announced that it plans to sell its 14.744 million treasury shares through an issuance of EB worth 143 billion won.
- The EB exchange price is 9,713 won (15.6% higher than its current price). The company plans to use the EB proceeds to pay down debt and for working capital.
- We are NEGATIVE on Harim Holdings’ EB issue using its treasury shares as the main asset to be exchanged.
MannKind’s Acquisition of scPharmaceuticals: Strategic CVR Valuation and FDA Approval Prospects for SCP-111
- MannKind acquires scPharmaceuticals for $5.35/share plus a CVR up to $1.00; market values CVR at $0.17.
- SCP-111’s FDA approval is crucial for CVR value; pivotal trials complete with positive results, sNDA submission expected Q3 2025.
- Sales milestone challenging; FUROSCIX revenue below $110m threshold; MannKind’s distribution network key for growth.
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