In today’s briefing:
- Total Net Asset Value of ETFs Based on FnGuide Indices Exceeds 30 Trillion Won (US$21 Billion)
- KOSDAQ150 Index Rebalance Preview: Large Number of Changes Likely in December; Huge Outperformance
- Hanwha Aerospace: Best Ever Results in 3Q 2025
- Korea Small Cap Gem #48: Daewon Sanup
- Hanmi Pharm (128940 KS): Flagship Drugs Boost 3Q25 Result Amid Obesity Pipeline Progress
- Long Kia (000270 KS) Vs. Short Hyundai (005380 KS): Quant Model Hits Trigger Zone in Korean Autos
Total Net Asset Value of ETFs Based on FnGuide Indices Exceeds 30 Trillion Won (US$21 Billion)
- FnGuide is one of the key beneficiaries of the increased index investing in Korea.
- Total net assets of ETFs tracking FnGuide indices surged from about 14 trillion won at the end of 2024 to about 30 trillion won as of end of October 2025.
- There has been a sharp increase in foreign ownership of FnGuide from 0.4% at the end of 2023 to 14.5% as of 3 November 2025.
KOSDAQ150 Index Rebalance Preview: Large Number of Changes Likely in December; Huge Outperformance
- With the review period for the December rebalance complete, we highlight 17 potential changes for the KOSDAQ 150 Index (KOSDQ150 INDEX).
- The estimated impact on the potential inclusions ranges from 0.1-3.2 days of ADV while the impact on the potential deletions varies from 0.7-11.2 days of ADV.
- The forecast adds have outperformed the forecast deletes over the last 6 months with a big move higher in the last couple of months. Trim positions into strength.
Hanwha Aerospace: Best Ever Results in 3Q 2025
- In 3Q25, Hanwha Aerospace reported sales of 6.5 trillion won (up 146.5% YoY and 1.6% lower than consensus) and operating profit of 856.4 billion won (up 79.5% YoY).
- The company’s results in 3Q 2025 were its best ever in its history. The strong results were driven by its land defense business and its shipbuilding unit Hanwha Ocean.
- Given the company’s excellent growth in sales and profits in the past several years as well as its strong order backlog, its valuationsremain attractive.
Korea Small Cap Gem #48: Daewon Sanup
- Daewon Sanup’s net cash as percentage of market cap is 171%. This is one of the highest net cash/market cap ratios in the Korean stock market.
- Daewon Sanup is one of the largest Korean automobile seat manufacturers. It is also one of the beneficiaries of the reduction in US auto tariffs to 15% (from 25% previously).
- The company is trading at dirt cheap valuations. It is trading at P/E of 2.3x and P/B of 0.4x based on LTM financials.
Hanmi Pharm (128940 KS): Flagship Drugs Boost 3Q25 Result Amid Obesity Pipeline Progress
- Hanmi Pharm (128940 KS) has reported mixed performance for 3Q25. Despite flat topline and high R&D investment, mid-single digit growth in operating profit is the key highlight of 3Q25 result.
- Interim topline results of Phase 3 trials for efpeglenatide have raised expectations that the drug will establish itself as a “national obesity drug” based on excellent efficacy and proven safety.
- The company submitted clinical trial application to FDA for HM17321. Hanmi received FDA approval to initiate a Phase 2 clinical trial with HM15275, which is expected to commence this month.
Long Kia (000270 KS) Vs. Short Hyundai (005380 KS): Quant Model Hits Trigger Zone in Korean Autos
- Context: The Kia (000270 KS) vs. Hyundai (005380 KS) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Kia (000270 KS) and short Hyundai (005380 KS) targets a 12% return.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
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