Daily Brief South Korea: Doosan Corp, Samsung Electronics Pref Shares, Manyo , LS Materials and more

• Gov’t likely to ease CVC rules; street chatter sees high odds. Tied to KRW150tn Growth Fund push, with corporates lobbying—cleanest path to juice capital flow.
• Holdcos at center of CVC‑easing; scrapping disclosure rule unlocks external capital. Street read: fast flip from control towers to re‑rating plays as real investment shops with growth portfolios.
• KFTC flags 177 holdcos, 14 with CVCs (13 listed). Street sees momentum flows hitting these 13 names; play via basket/overweight, with Doosan, Hyosung, LX as preferred plays.

• Samsung Electronics (005930 KS) has been in a furious rally for 8 weeks recently, trashing completely our previous forecast (we said the stock had limited upside, short-term forecast).
• Stock is up 95% since its Feb 2025 low, we have been Samsung Electronics bulls at least since January 2025, but surely we did not expect this monster rally.
• The stock inevitably will pullback, and a 1.7 Trillion KRW block deal sale by the owners is in motion. We identify short-term support zones to buy during the incoming pullback.

• Manyo is a fast-growing K-beauty brand specializing in natural and organic skincare, with a strong position in the domestic South Korean market and expanding global reach, particularly in Japan and the US.
• The company has demonstrated a robust growth trajectory, driven by the global demand for clean beauty and the popularity of K-beauty trends. Its successful IPO in 2023 and recent acquisition by a private equity firm are expected to fuel further product innovation and international expansion.
• Key risks include intense competition within the global cosmetics industry, reliance on the continued popularity of K-beauty trends, and the need to maintain brand differentiation and pricing power in a crowded market.

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• LS Materials is a key global player in the ultracapacitor market, a sector poised for significant growth driven by the expansion of electric vehicles (EVs), renewable energy, and industrial automation. The company is strategically positioned to capitalize on these long-term secular trends.
• The company’s financial performance has been volatile, with recent quarters showing margin pressure and negative free cash flow. While revenue grew in 2024, net income saw a significant decline, highlighting potential profitability challenges and the capital-intensive nature of its growth strategy.
• Future growth is tied to the successful expansion into the EV components market, including a joint venture for high-strength aluminum parts, and the adoption of its ultracapacitor technology as a complementary solution to lithium-ion batteries, particularly in high-power and extreme temperature applications.

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