In today’s briefing:
- Play the Timing Sweet Spot Between KOSPI 200 Rebal and Short Selling Coming Back into Play
- SGIC IPO Valuation Analysis
- Did Hynix Meet Expectations ?
Play the Timing Sweet Spot Between KOSPI 200 Rebal and Short Selling Coming Back into Play
- Short selling returns March 31, after 85% of the KOSPI 200’s rebalancing. Stocks set for removal will be prime short targets.
- Stocks removed have solid liquidity, tight passive impact gaps between them, and with short selling restarting March 31, we could see intensified volume in the short basket.
- With rebalance ahead, price action may start early. Market exposure means aggressive moves could happen before the end of March, so consider building futures positions before short selling resumes.
SGIC IPO Valuation Analysis
- Our base case valuation of Seoul Guarantee Insurance is target price of 32,463 won per share, which is 2.1% higher than the high end of the IPO price range.
- All in all, we are not particularly impressed with SGIC’s lack of top-line sales growth and worsening operating profit and margins in 1Q-3Q 2024.
- Despite the much lower IPO price range and a promise for higher shareholder returns, we remain Negative on this IPO.
Did Hynix Meet Expectations ?
- As we hit Chinese New Year break, we want to examine if Hynix’s earnings and investor call met investor expectations
- 6 key questions going in and where we are post SK Hynix (000660 KS) reporting and before Samsung Electronics (005930 KS) reports early February
- The consensus is that the key questions were not answered. Well, not all answered and some remains to be seen.
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