Daily Brief South Korea: Aimed Bio, Korea Stock Exchange KOSPI 200, Hyundai Motor, T&L Co Ltd and more

• Our base case valuation of Aimedbio is implied market cap of 882 billion won or target price of 13,256 won per share over a one year view in 2026. 
• This represents 21% upside over a one year period. Our cumulative sales and operating profit estimates from 2025 to 2029 are 11.4% and 48.3% lower than the company’s estimates, respectively.
• Aimedbio is not an easy company to value. Core investment thesis of the company is that it has an excellent technologies for antibody-based therapeutics, primarily antibody-drug conjugates (ADCs).

• Sanghyun Park recently posted a comprehensive insight regarding South Korea’s move toward forcing firms to cancel treasury shares. I invite you to read it if you haven’t yet.
• The KOSPI 200 index passive flows will probably be deeply impacted by this legal reform, we could see this happening soon, before the December KOSPI 200 reshuffle.
• Since funds moves could start any time, here is a quantitative-model-based analysis of the most probable trends, with a short-term focus (next 3-4 weeks).

• Sanae Taikichi will become the next Prime Minister of Japan. This is likely to have a Negative impact on the Korean automakers including Hyundai Motor and Kia Corp.
• Sanae Takaichi is a firm advocate of the late Prime Minister Shinzo Abe’s “Abenomics” strategy to boost the economy with aggressive spending and easing monetary policy.
• The weakening JPY combined with existing tariff rate advantage versus the South Korea could further positively impact the Japanese auto makers versus the Korean auto makers. 

• T&L Co Ltd is a rapidly growing manufacturer of advanced wound care and orthopedic products, capitalizing on its specialized polymer technology. The company has demonstrated exceptional financial performance, with revenue and net income growing at a 3-year CAGR of 34.5% and 33.3%, respectively.
• Despite strong fundamentals, the company’s valuation is under pressure due to significant external risks, primarily the threat of potential U.S. tariffs which could impact profitability. This has led to a recent 29% decline in share price and significant net selling by foreign investors.
• Future growth is contingent on the successful execution of its strategic initiatives, which include aggressive expansion into European markets and diversification into new, high-growth product areas like microneedle and cannabis patches.

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