Daily Brief South Korea: SK Hynix, Korea Zinc, Classys, Soosan Industries and more

• Hynix tagged L2: cash‑only, no margin. >40% two‑day rip triggers KRX halt. L2 caps distort tape; Square’s Oct 27–Nov 10 run showed the messy playbook.
• Hynix L2 review: five >200% YoY prints since Nov 4, but no fresh 15‑day high—₩620k from Nov 3 still the cap, yesterday stalled just below.
• Break above ₩620k likely triggers L2, leverage caps, volatile tape, Square outperformance; hold below into Monday kills L2 risk, keeps Hynix’s relative bid with retail still piling in.

• MBK Partners acquired an additional 2.7% stake in Korea Zinc raising its total ownership to 39.7%. This is likely to fuel additional positive share price momentum on Korea Zinc.
• This is likely to rekindle a potential M&A fight for the management control of the company. 
• This additional additional purchase of Korea Zinc by MBK Partners is a signal, not noise. Another M&A fight is likely in the next AGM in March 2026. 

• Classys is a high-growth medical aesthetics company poised for significant global expansion, driven by its flagship ‘Ultraformer’ (HIFU) and ‘Volnewmer’ (RF) product lines. The company’s growth strategy is centered on penetrating new, high-value markets such as the United States and Europe, supported by recent and anticipated regulatory approvals.
• The business model, which combines initial equipment sales with recurring revenue from high-margin consumables, has delivered a robust financial profile characterized by strong revenue growth and impressive profitability. Consumables now account for a significant and growing portion of sales, providing a stable and predictable revenue stream.
• Near-term challenges include potential margin compression due to shifts in product and geographic sales mix, as well as foreign exchange volatility. Long-term success is contingent on effective execution of its global expansion strategy, navigating intense competition, and maintaining its pace of innovation.

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• Soosan Industries is a key player in the South Korean power plant maintenance sector, specializing in essential services for the nation’s nuclear and thermal power generation facilities. The company is positioned to benefit from the government’s renewed focus on nuclear energy as a cornerstone of its long-term electricity supply plan.
• The company exhibits attractive valuation metrics, with a low price-to-earnings and price-to-book ratio compared to the broader market. This, combined with a consistent dividend history, may appeal to value-oriented investors.
• Recent financial performance indicates top-line pressure and margin contraction, reflecting potential cyclicality and a competitive operating environment. Future growth is heavily tied to securing new maintenance contracts and the execution of the national energy strategy, which includes both the extension of life for existing plants and the construction of new ones.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.