Daily Brief South Korea: Samyang Holdings, SK Inc, FnGuide Inc and more

• On 13 October, Value Partners has come out in support of Samyang Holdings (000070 KS)’s equity spin-off plan but on the condition that the company must cancel its treasury shares.
• Value Partners believes Samyang Holdings is currently severely undervalued, trading at a P/B of 0.34x. A shareholders meeting for Samyang Holdings is scheduled for 14 October. 
• We have a positive view of this equity spin-off. Our NAV valuation of Samyang Holdings suggests an implied price per share of 127,138 won (28.6% higher than current price).

• In yesterday’s hearing, Lotte skipped alternatives and signaled treasury burn, seen as bowing to political pressure, sparking a notable NXT post-market reaction.
• The mandatory treasury burn story hinges on major local holdings and their follow-through. Lotte’s hearing gave a live read, boosting the narrative’s traction in the near-term local market.
• Traders’ takeaway: holding cos with large treasury stakes could outperform, signaling a chance for outright longs, relative weight plays, or NAV discount tightening—time to get more aggressive locally.

Key points (machine generated)

• FnGuide, established in 2000, is a leading provider of market data and equity indices in South Korea.
• The company operates in three segments: financial market data, equity indices, and fund ratings, with the latter having limited market share.
• FnGuide’s ‘Value-Up’ plan focuses on improving stability, profitability, and growth, positioning it alongside global competitors like Factset and S&P Global.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.