In today’s briefing:
- FnGuide Top10 Index Rebalance Preview: Big Flow in Large Cap Stocks
- Samsung SDI Rights Trade Period & Short Ban: Quick Clarity
- Overhang on KDB’s Sell Down of Its 19.5% Stake in Hanwha Ocean
- Samsung Electronics: Global Funds Hit Rock Bottom
- Krafton: Acquisition of Controlling Stake in Neptune from Kakao Games
- S-Oil: Q1 Base Oils Profit Falls
FnGuide Top10 Index Rebalance Preview: Big Flow in Large Cap Stocks
- The Mirae Asset Tiger Top 10 ETF (292150 KS) tracks the FnGuide Top 10 Index and has an AUM of around US$660m.
- We currently forecast two potential changes at the next rebalance in June – both are high probability changes.
- The trade has performed well historically with positive performance till implementation followed by reversion post implementation in most cases.
Samsung SDI Rights Trade Period & Short Ban: Quick Clarity
- Samsung SDI kept the trading window open until May 12, not May 9 — so stock rights will trade for a total of six sessions.
- If all shorts are closed by May 16, we can still subscribe. Spot hedging isn’t allowed, but outright shorts for pricing plays are fine.
- Entry cost is effectively capped at 146,200 won, and it’s still very unlikely the final price exceeds that, so using it as the rights entry cap still makes sense.
Overhang on KDB’s Sell Down of Its 19.5% Stake in Hanwha Ocean
- Korea Development Bank (KDB) is capitalizing on the huge share price appreciation of Hanwha Ocean (042660 KS) to sell some of its stake in the company through block deal sales.
- KDB plans to sell its 19.5% stake in Hanwha Ocean. However, the initial block deal sale will be for about 13 million shares (4.3% of outstanding shares).
- Hanwha Ocean’s lofty valuations are difficult to justify. As KDB is getting ready to sell more shares, this could cause further overhang on its shares over the next 3-6 months.
Samsung Electronics: Global Funds Hit Rock Bottom
- Global equity fund ownership in Samsung Electronics has dropped to the bottom of its 10-year range.
- The percentage of global funds invested has fallen from 32.6% to 23.5% over the past 12-months.
- Key Growth investors from Schroders to Templeton exit the stock, leaving an investor base largely comprised of Value oriented funds.
Krafton: Acquisition of Controlling Stake in Neptune from Kakao Games
- On 29 April, Krafton announced that it plans to acquire a 39.37% controlling stake in Neptune Company from Kakao Games for 165 billion won ($114.9 million).
- Prior to this deal, Krafton owned a 3.2% stake in Neptune. After this deal is completed, Krafton will own a 42.53% stake (19.86 million shares) of Neptune.
- Krafton reported excellent results in 1Q 2025. The company beat its sales, operating profit, and net profit by 10.1%, 18.3%, and 13.8%, respectively in 1Q 2025.
S-Oil: Q1 Base Oils Profit Falls
- Base oils unit’s Q1 profit falls to lowest in more than four years
- Profit margin slides as Group III prices slump faster than feedstock costs
- Base oil unit’s Q1 profit contrasts with loss for refining and petchem units
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
