In today’s briefing:
- [Quiddity Index] Oct25 KOSPI 200 Leaderboard for Dec25 Rebal: Still 6+6, New 1.5 Pairs to Trade
- CMTX IPO Valuation Analysis
- Korea Small Cap Gem #46: Flitto
[Quiddity Index] Oct25 KOSPI 200 Leaderboard for Dec25 Rebal: Still 6+6, New 1.5 Pairs to Trade
- KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX). It’s popular.
- 87% of the reference period for the December 2025 rebal is complete. We see up to 6 ADDs and 6 DELs. Obvious ADD vs Downweight trades have not worked recently.
- Of the “1.5 pairs” I liked last time which worked fundamentally, both are down hard. Trades here are rotated.
CMTX IPO Valuation Analysis
- Our base case valuation of CMTX is implied market cap of 1 trillion won or 106,847 won per share. CMTX is a likely inclusion candidate in KOSDAQ150 index in 2026.
- Our base case valuation is based on P/E of 14.9x using our estimated net profit of 69 billion won in 2026.
- Our base case valuation is 65% higher than the high end of the IPO price range. Given the excellent upside, we have a Positive View of this IPO.
Korea Small Cap Gem #46: Flitto
- One of the key emerging catalysts for Flitto is the rapid adoption of the company’s AI-based simultaneous interpretation solution called Live Translation by companies such as Apple.
- Global big tech companies such as Apple, Meta, and Amazon Web Services (AWS) have used the service for their own events, which has accelerated its growth.
- Flitto had its best ever quarterly results in 2Q25. It had sales of 9.4 billion won (up 156% YoY). Operating margin surged from -38.5% in 2Q24 to 25.9% in 2Q25.
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