In today’s briefing:
- Korea Zinc Announces a Third Party Capital Raise of 2.9 Trillion Won & 11 Trillion Won US Investment
- A Tender Offer and Delisting of Shinsegae Food by E-Mart
- Korea Zinc: US Government–Linked JV Raises Strategic Valuation Floor; TP to ₩2.1m
- Lucror Analytics – Morning Views Asia
Korea Zinc Announces a Third Party Capital Raise of 2.9 Trillion Won & 11 Trillion Won US Investment
- On 15 December, Korea Zinc (010130 KS) announced a large scale third party capital raise of 2.85 trillion won (US$2.2 billion).
- Korea Zinc plans to issue 2.21 million new common shares (11.4% of current outstanding shares) at the issue price of 1,291,330 won per share (22.7% lower than current price).
- Korea Zinc announced a strategic partnership with the U.S. government and U.S.-based defense contractors to invest approximately 11 trillion won (US$7.4 billion) in constructing a critical minerals smelter in Tennessee, U.S.
A Tender Offer and Delisting of Shinsegae Food by E-Mart
- On 15 December, it was announced that E Mart Inc (139480 KS) is conducting a tender offer and delisting of Shinsegae Food (031440 KS).
- Tender offer price is 48,120 won (20% higher than the closing price on 12 December).
- Shinsegae Food is currently trading at very low valuations. It is trading at P/E of 5.3x, P/B of 0.4x, and EV/EBITDA of 1.5x based on 2026 consensus earnings estimates.
Korea Zinc: US Government–Linked JV Raises Strategic Valuation Floor; TP to ₩2.1m
- US government–linked investment in a planned US smelter JV materially lifts Korea Zinc’s long-term strategic relevance and downside valuation floor, even though project cash flows are long-dated and execution-heavy.
- Near–medium term earnings remain supported by zinc TC recovery, structurally higher rare-metals margins (led by antimony and germanium), and treasury-share cancellations, driving improved EPS visibility.
- We raise our target price to ₩2.1m, reflecting partial governance-discount compression and a higher strategic multiple, while maintaining conservative assumptions on timing and returns.
Lucror Analytics – Morning Views Asia
- The UST curve twisted steeper on Friday, continuing the steepening trend following the Fed’s rate cut decision last Wednesday.
- The yield on the 2Y UST declined 2 bps to 3.52%, while the yield on the 10Y UST rose 3 bps to 4.18%.
- Equities fell on investor anxiety over AI stocks, after Broadcom provided a disappointing sales outlook.
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