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South Korea Archives | Page 12 of 126 | Smartkarma

Aug 18
0

Daily Brief South Korea: Isupetasys and more

By | Daily Briefs, South Korea

In today’s briefing:

  • KOSPI Size Indices: Passive Flows for Many Active Changes

KOSPI Size Indices: Passive Flows for Many Active Changes

By Brian Freitas

  • The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.
  • Nearing the end of the review period, we forecast 49 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 1 to SmallCap.
  • There are a number of stocks that will have passive flow from global index trackers over the next few weeks, while some are potential changes to the KOSPI2 in December.

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Aug 17
0

Daily Brief South Korea: Samsung Electronics and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (15 to 29 August 2025)

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (15 to 29 August 2025)

By Douglas Kim

  • In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (15 to 29 August 2025).
  • Shipbuilding and rechargeable battery were two of the best performing sectors in the past two weeks.
  • Top 10 picks in this bi-weekly include Samsung Electronics, LG Uplus, Hyundai Elevator, KT&G, KEPCO E&C, Dentium, NCsoft, JYP Entertainment, LG Chem, and Ecopro BM. 

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Aug 16
0

Daily Brief South Korea: SK Innovation, Total Soft Bank, Dentium and more

By | Daily Briefs, South Korea

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

By Sanghyun Park

  • 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

By Douglas Kim

  • 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)

By Douglas Kim

  • 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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Aug 15
0

Daily Brief South Korea: HMM Co., Ltd., Webtoon Entertainment and more

By | Daily Briefs, South Korea

In today’s briefing:

  • HMM KRW 2T Tender: Full Pro-Rata Risk Assessment
  • HMM: Tender Offer of 8% of Outstanding Shares and Cancellation
  • Webtoon Entertainment: Secures a Big Contract With Disney

HMM KRW 2T Tender: Full Pro-Rata Risk Assessment

By Sanghyun Park

  • Watch next Monday’s premium and the share slice we can grab—these will drive hedge sizing with futures or other plays.
  • Premium sits in the late 10% range, above expectations; HMM’s float is tight, with 80%+ effectively locked by KDB, KOBC, NPS, and passive holders.
  • The tender pool is capped at ~15% of shares; with KDB taking 3–3.5%, about 4.5–5% remains available for the market.

HMM: Tender Offer of 8% of Outstanding Shares and Cancellation

By Douglas Kim

  • After the market close on 14 August, HMM Co., Ltd. (011200 KS) announced a tender offer of 81.8 million treasury shares (8% of outstanding shares).
  • An even bigger factor on HMM’s share price than this tender offer could be the continued decline in the global shipping rates which is negative on the company. 
  • Overall, we would be cautious on HMM over the next one year. HMM also reported worse than expected operating profit in 2Q 2025 due to weaker global shipping rates.

Webtoon Entertainment: Secures a Big Contract With Disney

By Douglas Kim

  • Webtoon Entertainment (WBTN US) has secured a big contract with The Walt Disney Co (DIS US) including Avengers and Spider Man to become available in webtoon format. 
  • We believe Webtoon Entertainment could grab about 20% of the global market for webtoons in 2030 which would be about $4 billion in revenues.
  • Assuming a net margin of 10% and a P/E multiple of 20x, it suggests market cap of $8 billion for Webtoon Entertainment by 2030 (264% upside from current levels).

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Aug 14
0

Daily Brief South Korea: Samsung Biologics , Hugel Inc, Jyp Entertainment and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Current Samsung Biologics Split Dynamics with Alpha Potential Both Ways
  • Hugel Inc (145020 KS): Strong Overseas Sales Drive 2Q Performance; Positive Outlook
  • JYP Entertainment: Explosive Earnings Growth in 2Q 2025

Current Samsung Biologics Split Dynamics with Alpha Potential Both Ways

By Sanghyun Park

  • One of the hottest local plays is gauging KRX and FSS leanings on Biologics split, which could drive short-term alpha across the three Samsung names alongside battery and HBM flows.
  • Short-Term focus is KRX pre-listing review and FSS registration window. Once approval and lock-up kick in, Biologics and Samsung Electronics could outperform Samsung C&T.
  • From a risk-hedge angle, this is a long-short alpha setup: if the split fails, Samsung C&T likely takes the hit, offering alpha potential both ways.

Hugel Inc (145020 KS): Strong Overseas Sales Drive 2Q Performance; Positive Outlook

By Tina Banerjee

  • Hugel Inc (145020 KS) has reported strong 2Q25 result, with all key parameters marking the highest quarterly figures in the company’s history and contributed to a record first-half performance.
  • Overseas revenue of toxin and derma fillers rose 21% YoY to KRW70B, accounting for 63% of the company’s total sales, boosted by robust growth in the U.S., China, and Europe.
  • Hugel is well-positioned to report ~20% annual revenue growth through 2027 through global expansion amid favorable industry backdrop.

JYP Entertainment: Explosive Earnings Growth in 2Q 2025

By Douglas Kim

  • JYP Entertainment reported an explosive growth in sales and profits in 2Q 2025. It achieved sales of 215.8 billion won (up 125.5% YoY and 6.4% higher than consensus).
  • JYP also had an operating profit of 52.9 billion won (up 466.5% YoY and 23.3% higher than consensus in 2Q 2025.
  • JYP’s much better than expected results in 2Q 2025 confirms its ability to monetize the growing popularity of K-Pop globally. 

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Aug 13
0

Daily Brief South Korea: Korea Stock Exchange KOSPI 200, Samsung Electronics, KT Corp, LS Corp and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Stealthy Long-Short Flow Playing Out Via Local KOSPI 200 Covered Call ETFs
  • Samsung Electronics (005930 KS) Tactical Outlook : New Rally After Large Pullback?
  • KT Corp: Excellent 2Q 2025 Earnings Driven by Market Share Gain and Improving AI/Cloud Businesses
  • LS Corp: Treasury Share Cancellation of 171 Billion Won

Stealthy Long-Short Flow Playing Out Via Local KOSPI 200 Covered Call ETFs

By Sanghyun Park

  • Covered call ETFs ramped up KOSPI 200 weekly call selling, pushing premiums unusually low despite modest overall volume—likely a key driver behind the premium compression.
  • KOSPI 100 outperformed KOSPI 200 small-mid caps by 3.7%p last month, probably boosted by call-selling ETFs’ delta-hedge buying concentrated in large caps.
  • Watch for hedge buy flows ramping up before big events. Timing short-term longs in large caps and shorts in smaller KOSPI 200 names around these windows can yield solid alpha.

Samsung Electronics (005930 KS) Tactical Outlook : New Rally After Large Pullback?

By Nico Rosti

  • Samsung Electronics (005930 KS) has been rallying for quite a while in the last few weeks, and we have been bullish on the stock since the start of the year. 
  • At the moment the stock is very overbought according to our model, we see potential for a pullback, possibly something larger than a buy the dip.
  • A 2 or even a 3 weeks correction should not be ruled out at this stage, 64700 is the limit support zone we are looking at, the short profit target.

KT Corp: Excellent 2Q 2025 Earnings Driven by Market Share Gain and Improving AI/Cloud Businesses

By Douglas Kim

  • The most important reason for KT’s excellent results in 2Q 2025 was due to the major hacking incident at SK Telecom in May 2025.
  • The company’s growing AI business and successful real estate sales also contributed to the company’s improving results in 2Q 2025. 
  • KT is likely to benefit from higher profits and returns on capital in the next couple of years as the penetration of 5G service surpasses more than 80%.

LS Corp: Treasury Share Cancellation of 171 Billion Won

By Douglas Kim

  • On 12 August, LS Corp (006260 KS) announced that it will cancel 1 million treasury shares (171 billion won), representing 3.1% of its outstanding shares.
  • This is significant, especially because the company has not cancelled any shares in the past five years. This move signals the company’s willingness to provide greater returns to its shareholders.
  • LS plans to increase its dividend by at least 5% annually, to reach dividend payout of at least 30% by 2030.

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Aug 12
0

Daily Brief South Korea: SK Square , SK Telecom, Korea Stock Exchange KOSPI 200, Hyundai Autoever , Kolon Mobility Group, LG Chem Ltd, Samsung Electronics, SKC Co Ltd and more

By | Daily Briefs, South Korea

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

By Sanghyun Park

  • 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

By Brian Freitas

  • 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

By Sanghyun Park

  • 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

By Travis Lundy

  • 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

By David Blennerhassett

  • 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

By Douglas Kim

  • 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

By Nico Rosti

SKC: Plans to Issue EB Worth 125 Billion Won

By Douglas Kim

  • 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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Aug 10
0

Daily Brief South Korea: Shinhan Financial, Korea District Heating and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korea Local Banks: New Dividend Tax Effectively Locks in a De Facto Minimum Yield Play
  • Asian Dividend Gems: Korea District Heating Corp (KDHC)

Korea Local Banks: New Dividend Tax Effectively Locks in a De Facto Minimum Yield Play

By Sanghyun Park

  • We’ve got a locked-in floor on ’26 DPS and clear upside, providing a solid dividend yield baseline—ideal for leaning into aggressive trade setups.
  • We can lean into spot longs with covered calls, but yields (especially KB, Shinhan) aren’t yet compelling. A pullback before the ’26 dividend run is a prime entry window.
  • Plus, a bank long-short: long KB/Shinhan, short Hana/Woori. KB and Shinhan face payout increases, with ’26 guidance in 4Q25 earnings as the catalyst.

Asian Dividend Gems: Korea District Heating Corp (KDHC)

By Douglas Kim

  • There are three major reasons why we like Korea District Heating (071320 KS). First, the company has been sharply improving its shareholder return program (especially for dividends).
  • The BOD members of KDHC and other major Korean utility companies are increasingly likely to focus on improving shareholder value by raising prices.
  • Its valuations remain attractive. It is trading at P/E of 3.2x, P/B of 0.4x, and EV/EBITDA of 6.8x based on 2025 consensus estimates.

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Aug 09
0

Daily Brief South Korea: SK Hynix, T’Way Air and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Yeouido Views Grow: Hynix’s Contract Risks & Samsung Supply Push Drive Long-Short Play Through 1H26
  • T’Way Air – Capital Raise Plan of 200 Billion Won (49% of Market Cap)

Yeouido Views Grow: Hynix’s Contract Risks & Samsung Supply Push Drive Long-Short Play Through 1H26

By Sanghyun Park

  • Street chatter says Hynix’s HBM4 hike tops ~20%, not covering costs — and Nvidia’s pushing similar cuts on its flagship 12-Hi HBM3E.
  • Yeouido’s watching “Blind” posts from Samsung engineers saying 1c 12-Hi HBM4 yields look strong — fueling bets Samsung will cut prices, ramp HBM3E now, and challenge Hynix in HBM4.
  • In Yeouido, the Samsung long/Hynix short theme is seen as a structural trade through 1H next year amid Hynix’s contract uncertainty and Samsung’s supply entry potential.

T’Way Air – Capital Raise Plan of 200 Billion Won (49% of Market Cap)

By Douglas Kim

  • On 7 August, T’Way Air (091810 KS) announced a large scale capital raise plan worth 200 billion won, representing 49% of its current market cap (409 billion won).
  • This capital raise plan will include a third-party allocation worth 110 billion won based on the market price without discount. It will also issue CB/BW worth 90 billion won
  • We maintain Negative on T’Way Air. The capital raise of 200 billion won is likely to be dilutive to existing shareholders and its valuations remain high relative to its peers.

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Aug 08
0

Daily Brief South Korea: Samsung Electronics, Kolon Mobility Group, T&L Co Ltd, KT&G Corporation and more

By | Daily Briefs, South Korea

In today’s briefing:

  • How Chip Tariffs Shake up Samsung’s HBM Pricing Play Based on Fresh Local Intel
  • Tender Offer and Delisting of Kolon Mobility Group by Kolon Corp
  • Korea Small Cap Gem #42: T&L Co
  • KT&G: Solid Results in 2Q 2025 + Treasury Shares Cancellation of 300 Billion Won

How Chip Tariffs Shake up Samsung’s HBM Pricing Play Based on Fresh Local Intel

By Sanghyun Park

  • Samsung’s 12-high HBM3E qual at NVIDIA may slip to Oct–Nov. But tariff timing uncertainty still leaves room for a near-term demand spike.
  • Samsung’s 1c-based HBM4 is yielding better than expected, but it’s 30% pricier than Hynix’s. Tariff treatment of the Taylor fab could make or break its HBM4 competitiveness.
  • Too early to call HBM4, but Samsung’s HBM3E pricing plus tariff uncertainty could spark urgent NVIDIA buying — triggering a near-term volume spike before next-gen ramps.

Tender Offer and Delisting of Kolon Mobility Group by Kolon Corp

By Douglas Kim

  • Kolon Corp (002020 KS) announced that it is conducting a tender offer and delisting of Kolon Mobility Group (450140 KS).
  • The tender offer prices are 4,000 won per common share (20.3% higher than current price) and 5,950 won per preferred share (25.3% higher than current price) for Kolon Mobility Group.
  • The tender offer prices and stock swap ratios are especially attractive for Kolon Mobility Group shareholders.

Korea Small Cap Gem #42: T&L Co

By Douglas Kim

  • T&L’s key investment highlights include its exceptional sales growth led by its core wound dressing/cosmetic product Mighty Patch.
  • It had a CAGR sales growth of 44% from 2020 to 2024. Its operating profit increased at even faster rate (CAGR of 56% from 2020 to 2024. 
  • Considering T&L’s 40%+ per year sales growth and 50%+ per year operating profit growth from 2020 to 2024 combined with 30%+ ROE, the company is deeply undervalued. 

KT&G: Solid Results in 2Q 2025 + Treasury Shares Cancellation of 300 Billion Won

By Douglas Kim

  • KT&G reported solid results in 2Q 2025. It had sales of 1.5 trillion won (up 8.7% YoY) and operating profit of 349.9 billion won (up 8.7% YoY).
  • KT&G plans to repurchase and cancel 300 billion won worth of treasury stock starting 8 August.
  • KT&G continues to have attractive valuation multiples. It is currently trading at P/E of 12.3x, P/B of 1.6x, and EV/EBITDA of 9.4x.

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