In today’s briefing:
- Korea: 11 Potential Index Deletions in February
- LG CNS: First Day Trading Strategy Post IPO
- Samsung Life Insurance Is Considering on Incorporating Samsung F&M Insurance as a Subsidiary
- Alteogen (196170 KS): More ALT-B4 Licensing Deal to Follow; Fund Raise Wipes Off Uncertainty
- Hana Financial: Share Buyback and Cancellation of 400 Billion Won + 50% Total Shareholder Return
Korea: 11 Potential Index Deletions in February
- There are 11 stocks (maybe 12) in Korea that could be deleted from a global index in February and that will result in large selling from passive trackers.
- With announcement in a week and implementation in just over 3 weeks, there is positioning in a lot of the names.
- With short selling still banned, positioning will not be as high as the passive selling and the stocks could still drop over the next few weeks.
LG CNS: First Day Trading Strategy Post IPO
- In this insight, we discuss the first day trading strategy of LG CNS which starts trading on 5 February.
- On the first day of trading, we believe LG CNS’s shares could trade at higher levels, overshooting its intrinsic valuations.
- We recommend investors to take some profits off the table if the share price shoots higher by 30% to 50%+ from the IPO price on the first day.
Samsung Life Insurance Is Considering on Incorporating Samsung F&M Insurance as a Subsidiary
- After the market close on 4 February, several local news outlets reported that Samsung Life Insurance is considering on incorporating Samsung Fire & Marine Insurance as a subsidiary.
- Share cancellation by Samsung F&M Insurance would lead to an increase in ownership stake of Samsung F&M Insurance by Samsung Life Insurance which would violate the current Insurance Business Act.
- It is unlikely for Samsung Life Insurance to sell some of its stake in Samsung F&M Insurance, but Samsung Life Insurance could increase its stake in Samsung F&M Insurance.
Alteogen (196170 KS): More ALT-B4 Licensing Deal to Follow; Fund Raise Wipes Off Uncertainty
- In November 2024, Alteogen Inc (196170 KS) entered into an exclusive license agreement with Daiichi Sankyo for an upfront payment of $20M (KRW28B).
- With increasing number of players developing ADC drugs mainly targeting various cancers, we can expect more big-ticket licensing deals for ALT-B4, going ahead.
- On February 4, Alteogen has raised ~KRW155B through redeemable convertible preference shares. Over the last few months, Alteogen shares had a roller coaster ride due to fund raising rumors.
Hana Financial: Share Buyback and Cancellation of 400 Billion Won + 50% Total Shareholder Return
- On 4 February, Hana Financial (086790 KS) announced a share buyback and cancellation of 400 billion won worth of treasury shares, representing 2.3% of its market cap.
- Hana Financial plans to achieve a total shareholder return ratio of 50% by 2027. Its total shareholder return ratio increased to 37.8% in 2024, up 4.8% YoY.
- Hana Financial’s total cash dividend per common share is 3,600 won in 2024 (up 5.9% YoY). Hana Financial’s total shareholder return ratio increased to 37.8% in 2024, up 4.8% YoY.
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