In today’s briefing:
- Playing Korea’s Hot Secondary Battery Sector Rotation
- Korea Small Cap Gem #43: Total Soft Bank
- Dentium – Cancellation of 2.44 Million Treasury Shares (22% of Outstanding Shares)
Playing Korea’s Hot Secondary Battery Sector Rotation
- Battery-Sector rotation is heating up in Korea as active ETFs sharply boost LG Energy Solution and Samsung SDI, signaling renewed sector focus amid ESS growth and easing valuation pressures.
- Watch for supply-demand dislocations during battery-sector ETF rebalances; top-heavy names may see concentrated flows, amplifying trading intensity and driving larger-than-normal price swings.
- The 25% cap reversion could move LG Energy Solution down and SK Innovation up ~5pp, with flows hitting -0.2x/+0.6x DTV, potentially amplified by aggressive sector inflows.
Korea Small Cap Gem #43: Total Soft Bank
- Total Soft Bank (045340 KS) is a Korean software company focused on digital solutions (enterprise industrial software, SaaS) for the maritime shipping and port logistics value chain.
- The company had best ever results in 2Q25. It had sales of 9.7 billion won (up 140.6% YoY) and operating profit of 5.1 billion won (up 947% YoY) in 2Q25.
- Using a P/E ratio of 15x on the estimated net profit of 15.5 billion won (2027E), it would suggest market cap of 233 billion won (207% higher than current levels).
Dentium – Cancellation of 2.44 Million Treasury Shares (22% of Outstanding Shares)
- Dentium announced that it has decided to cancel all of its 2.44 million treasury shares (22% of its outstanding shares).
- This is massive and should have a positive impact on Dentium’s share price.
- Although the company reported a disappointing results in 2Q 2025 and its exports to China are slowing down, the company still generates healthy operating margins (18.9% in 2Q 2025).
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