In today’s briefing:
- Identifying the SK Square Vs. Hynix Price Ratio Reversion Alpha Setup
- SK Telecom (017670 KS): Increasing Foreign Room & Passive Buying
- Why We’re Eyeing KRX’s Sep 29 KCMC Event for Dividend Momentum Trades
- [Quiddity Index Aug25] KOSPI 200 Leaderboard for Dec25 Rebal: 6 ADDs, 6 DELs, Two Recommended Trades
- Kolon Mobility (450140 KS)’s Delisting Offer
- LG Chem: Flurry of Asset Sales Raises the Probability of A Partial Sale of LG Energy Solution
- Global Markets Tactical Outlook WEEKLY: August 11 – August 15
- SKC: Plans to Issue EB Worth 125 Billion Won
Identifying the SK Square Vs. Hynix Price Ratio Reversion Alpha Setup
- Hunting the reversion point for Square-Hynix price ratio amid local buzz: need clear pro-business tax signals and Hynix’s downtrend to continue despite today’s bounce.
- Tax tweak likely turns neutral despite gov’s cautious tone today. Hynix’s bounce faces headwinds from supply ramp and yield issues, so fresh rally odds remain slim.
- Focus on hunting SK Square vs. Hynix price ratio reversion, pairing it with Samsung Long/Hynix Short for a strong short-term trade setup to ride the trend.
SK Telecom (017670 KS): Increasing Foreign Room & Passive Buying
- Foreign room in SK Telecom (017670 KS) is over 21% now and increasing as foreign investors sell stock.
- Further foreign selling could take foreign room past 25% and that will result in passive inflows for the stock. Timing is dependent on when the 25% threshold is crossed.
- SK Telecom has underperformed its peers over the last 3 months and that has shrunk its valuation premium. Watch for a further increase in foreign room for an entry point.
Why We’re Eyeing KRX’s Sep 29 KCMC Event for Dividend Momentum Trades
- KCMC 2025 will likely reveal fresh, unpriced stimulus details, potentially sparking a price rally like last year’s 2% KOSPI 200 jump on the value-up ETF rollout.
- The key wildcard at KCMC 2025 is dividends—shifting from Yoon’s Japan-style ROE grind to a Taiwan-style push for bigger shareholder payouts.
- With Sept 29 approaching, dividend policy buzz may drive price moves—smart to prep dividend momentum trades to front-run this catalyst.
[Quiddity Index Aug25] KOSPI 200 Leaderboard for Dec25 Rebal: 6 ADDs, 6 DELs, Two Recommended Trades
- 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).
- We expect up to 6 ADDs and 6 DELs for the December-2025 index rebal based on the latest available data. Same count as a month ago, but 5/12 name changes.
- We have new charts available for all expected ADDs/DELs showing a variety of data we think worthwhile in terms of judging trade opportunity and risk. And two recommended trades.
Kolon Mobility (450140 KS)’s Delisting Offer
- Kolon Corp (002020 KS)(KC) is seeking to delist 75.23%-held Kolon Mobility Group (450140 KS) (KM), an auto importer.
- Via a dual approach, KC is offering ₩4,000 per KM common share and ₩5,950 per KM preferred share. Any untendered shares will be swapped into KC shares.
- The tender offer period is from 8th August to 8th September, with payment on the 10th September. There is no minimum acceptance condition.
LG Chem: Flurry of Asset Sales Raises the Probability of A Partial Sale of LG Energy Solution
- In the past three months, LG Chem has announced two asset sales worth 1.6 trillion won including dermal filler and water filter businesses.
- Due to worsening balance sheet and need to raise additional capital, there is an increasing probability of LG Chem selling a partial stake in LGES in the next 6-12 months.
- Our NAV valuation of LG Chem suggests implied NAV per share of 414,325 won, which is 49% higher than current levels.
Global Markets Tactical Outlook WEEKLY: August 11 – August 15
- A quick synoptic look at the tactical setups for the indices, stocks, commodities and bonds we cover, for the week August 11 – August 15.
- OVERBOUGHT at the WEEKLY Close: NVIDIA Corp (NVDA US), Meta (META US) , Samsung Electronics (005935 KS) , Softbank Group (9984 JP) ,
- OVERSOLD at the WEEKLY Close: BYD (1211 HK) , NIFTY Index (NIFTY INDEX)
SKC: Plans to Issue EB Worth 125 Billion Won
- On 11 August, SKC Co Ltd (011790 KS) announced that it will issue exchangeable bonds (EB) worth 125 billion won.
- The exchange price is 114,714 won, which is a 14% premium to the reference stock price calculated based on the market price.
- We are Negative on SKC’s EB issue of 125 billion won which is likely to put a negative sentiment on its share price.
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