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South Korea Archives | Page 27 of 127 | Smartkarma

Mar 08
0

Daily Brief South Korea: Korea Zinc, TXR Robotics and more

By | Daily Briefs, South Korea

In today’s briefing:

  • M&A For Korea Zinc: Seoul Central District Court Makes Important Rulings
  • TXR Robotics: IPO Book Building Results Analysis

M&A For Korea Zinc: Seoul Central District Court Makes Important Rulings

By Douglas Kim

  • On 7 March, the Seoul Central District Court ruled that it is reasonable for Korea Zinc to maintain the concentrated voting system, which should favor Chairman Choi and his allies.
  • On the other hand, the court also ruled that Korea Zinc was wrong to restrict Young Poong’s voting rights which should be favorable to MBK/Young Poong alliance. 
  • The fact that the court has allowed concentrated voting system would mean the M&A of Korea Zinc will continue. 

TXR Robotics: IPO Book Building Results Analysis

By Douglas Kim

  • The IPO price of TXR Robotics has been finalized at 13,500 won per share, which is at the high end of the IPO price range. 
  • The demand ratio among institutional investors was 862.6 to 1. 
  • According to our valuation analysis, it suggests an implied price of 19,673 won per share, which is 46% higher than the IPO price (13,500 won).

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Mar 07
0

Daily Brief South Korea: Nongshim Co Ltd, Korea Stock Exchange KOSPI 200, LS Corp and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Nongshim Raises Instant Noodles Prices
  • DN Solutions IPO Might Skip OC—A Unique Trading Opportunity
  • LS Corp: Chairman’s Words Have Big Impact on Share Price

Nongshim Raises Instant Noodles Prices

By Douglas Kim

  • Nongshim announced that it plans to increase the prices of its instant noodles and snack products starting next week. 
  • Nongshim plans to raise the retail prices of 14 instant noodle products by 7.2% on average and three snack products by 7.4% starting Monday (10 March).
  • We estimate the consensus to raise their earnings estimates by 5-10%+ in 2025 and 2026, driven by the higher product prices of major instant noodles and snacks. 

DN Solutions IPO Might Skip OC—A Unique Trading Opportunity

By Sanghyun Park

  • With cautious foreign interest, DN Solutions’ big IPO deal might skip the OC and go full local for bookbuilding, setting a new trend in Korean IPOs.
  • If foreign anchor orders drop, local players gain more negotiating power, leading to aggressive bidding and potentially a way more conservative IPO price.
  • Offshore funds passing investment review without an OC could grab more volume, benefiting from local-led down-pricing without lock-up restrictions.

LS Corp: Chairman’s Words Have Big Impact on Share Price

By Douglas Kim

  • On 6 March, LS Group Chairman Koo Ja-Eun publicly stated “If you think duplicate listings are a problem, then just don’t buy the stocks after the listing.”
  • Chairman Koo’s comment was not in the best interest of the major LS Group companies including LS Electric and LS Corp that are publicly traded.
  • LS Group is preparing to list at least five unlisted affiliates including LS E-Link, Essex Solutions, LS Cable, LS MnM, and KOC Electric  in the next 1-3 years. 

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Mar 06
0

Daily Brief South Korea: Dozn and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Dozn IPO Valuation Analysis

Dozn IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Dozn is implied market cap of 429 billion won or target price of 17,910 won per share (43% higher than high-end of IPO price range). 
  • Our base case target price is based on P/E of 25.3x (20% premium to comps’ average valuation multiple) using our estimated net profit of 17 billion won in 2025. 
  • This valuation premium is appropriate due to Dozn’s higher sales growth rate, higher net margins, and higher ROE versus the comps. 

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Mar 05
0

Daily Brief South Korea: Korea Stock Exchange KOSPI 200, Kum Yang , Hanwha Systems Co Ltd and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Local Brokers Sound Off on 40% IPO Lock-Up—A Major Setup for Offshore Traders
  • KOSPI200 Index Adhoc Rebalance: Kumyang (001570 KS)’s Designation Opens Up an Index Spot
  • Kum Yang Gets Designated as an Administration Stock and To Be Deleted from KOSPI 200 Index
  • Hanwha Systems: Expand 3rd Party Allocation Capital Increase Limit from 20% to 30% of Issued Shares
  • Kospi Index Options Weekly (Feb 24 – 28): Decline Accelerates Through 350

Local Brokers Sound Off on 40% IPO Lock-Up—A Major Setup for Offshore Traders

By Sanghyun Park

  • This 40% rule will distort bookbuilding, force down-pricing, choke float post-listing, and amplify volatility.
  • Offshore investors like us benefit most—cheap IPO pricing with no lock-up. Local brokers see this as a giveaway to foreign funds and pushed back hard last Friday.
  • FSS won’t budge—40% lock-up is happening. If issues arise post-implementation, they might adjust later.

KOSPI200 Index Adhoc Rebalance: Kumyang (001570 KS)’s Designation Opens Up an Index Spot

By Brian Freitas

Kum Yang Gets Designated as an Administration Stock and To Be Deleted from KOSPI 200 Index

By Douglas Kim

  • On 4 March, Korea Exchange announced that it will designate Kum Yang (001570 KS) as an administration stock, resulting in a deletion from KOSPI 200 index.
  • These increased penalty points and fine are mainly from the company inflating the expected performance of a Mongolian mine which the company had plans to acquire shares.
  • We continue to remain negative on Kum Yang. As a result of designation as an administration stock and deletion from KOSPI 200, investors will likely push down this stock further.

Hanwha Systems: Expand 3rd Party Allocation Capital Increase Limit from 20% to 30% of Issued Shares

By Douglas Kim

  • In the past week, Hanwha Systems announced that it plans to expand third party allocation capital increase limit from 20% to 30% of issued shares in its articles of incorporation.
  • This plan to significantly increase the amount of capital raise limit sets the stage for a major capital increase by Hanwha Systems in 2025, in our view. 
  • Unlike in 2021 when we were bullish on Hanwha Systems post a large-scale capital raise, we are more cautious on the company’s potential new large scale capital raise this year. 

Kospi Index Options Weekly (Feb 24 – 28): Decline Accelerates Through 350

By John Ley

  • Kospi records one of its five largest declines of the past year on Friday.
  • Volatility responded sharply to the accelerating selloff, closely tracking the market’s downward momentum.
  • With the sharp decline and surge in implied volatility, hedging considerations are explored.

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Mar 04
0

Daily Brief South Korea: Korea Stock Exchange Kospi Index, Gemvax & Kael and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Biggest Gray Area in Korea’s Short-Selling Overhaul: What Should TRS Clients Do?
  • FnGuide Semiconductor Top10 Index Rebalance Preview: Big Moves Lead to Changes in Forecast

Biggest Gray Area in Korea’s Short-Selling Overhaul: What Should TRS Clients Do?

By Sanghyun Park

  • If brokers let shorts exceed borrow, TRS end investors risk getting caught in the legal crossfire.
  • Some TRS players are setting up short-book systems and reg numbers proactively, ensuring brokers share borrow data to stay ahead of any compliance risks.
  • With most illegal shorts tied to TRS, and TRS dominating the market, the FSS will likely introduce TRS-specific rules rather than granting exemptions.

FnGuide Semiconductor Top10 Index Rebalance Preview: Big Moves Lead to Changes in Forecast

By Brian Freitas

  • With the averaging period for the April rebalance commencing today, we forecast 2 changes for the FnGuide Semiconductor Top10 Index at the upcoming rebalance.
  • Based on the passive assets tracking the index, there will be between 0.65-1x ADV to buy in the adds and between 0.5-1.7x ADV to sell in the deletes.
  • The big rally has taken Gemvax & Kael into inclusion zone while underperformance leads to ISC Co and Techwing dropping out of inclusion zone.

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Mar 02
0

Daily Brief South Korea: Seoul Guarantee Insurance, EcoPro Materials and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Seoul Guarantee Insurance IPO Bookbuilding Results Analysis
  • Ecopro Materials: Seeking 300 Billion Won in Additional Capital Raise

Seoul Guarantee Insurance IPO Bookbuilding Results Analysis

By Douglas Kim

  • The majority of the investors placed orders at 26,000 won, which is the lower end of the IPO price range (26,000 won to 31,800 won).
  • SGIC held internal discussions to set the public offering price at 26,000 won. The final price (which is likely to be 26,000 won) will be revealed on 4 March. 
  • Our updated base case valuation of SGIC is base case target price of 28,925 won per share. Given the lack of upside, we have a negative view of this deal.

Ecopro Materials: Seeking 300 Billion Won in Additional Capital Raise

By Douglas Kim

  • It has been reported in the local media that EcoPro Materials (450080 KS) is seeking about 300 billion won in additional capital which represents about 5% of its market cap.
  • There could be concerns about dilution associated with this capital raise which could result in share price decline. The company is currently considering on issuing RCPS for this capital raise. 
  • There could be additional concerns about potential dilution associated with this capital raise which could result in further share price decline for Ecopro Materials.

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Mar 01
0

Daily Brief South Korea: Korea Stock Exchange KOSPI 200, SL Corp, HSD Engine Co., Ltd. and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Street Intel on NPS’s Buy Flow—the Key Swing Factor as Korea’s Short-Selling Comeback
  • Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (3 March 2025)
  • End of Mandatory Lock-Up Periods for 43 Companies in Korea in March 2025

Street Intel on NPS’s Buy Flow—the Key Swing Factor as Korea’s Short-Selling Comeback

By Sanghyun Park

  • NPS’s aggressive net buying over the past four months? Just a 3% buffer rebalance—not some structural bullish call on K-stocks.
  • Street intel points to NPS capping buys in the low-14% range, 1%p below target, only defending against dips. With short selling back on from March 31, further buying looks unlikely.
  • With NPS stepping back and retail still weak, no real size remains on the buy side. Short flow could hit harder than expected—time to price it in and adjust positioning.

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (3 March 2025)

By Douglas Kim

  • In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 3 March.
  • Our top 10 Korean stock picks from 14 to 28 January are down on average 1.8%, slightly outperforming KOSPI which is down 2.2% in the same period.
  • The top 10 Korean stock picks (bi-weekly) include SL Corp, Korea Electric Terminal, BNK Financial, S1, LX International, Doubleugames, Samsung C&T, Amorepacific Corp (pref), SK Telecom, and POSCO International. 

End of Mandatory Lock-Up Periods for 43 Companies in Korea in March 2025

By Douglas Kim

  • This insight provide a list of 43 stocks (2 KOSPI and 41 KOSDAQ) with end of mandatory lock-up periods for certain shares in March 2025.
  • Some of the companies mentioned in this insight which highlights the end of major lockup periods in March could help to narrow down the list of candidates for potential shorting.
  • Among these 43 stocks, the top five market cap stocks that could be sold after end of lock-up/total outstanding shares include Hanwha Engine, GI Innovation, Orum Therapeutics, and Angel Robotics.

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Feb 28
0

Daily Brief South Korea: LG Chem Ltd, Samsung Electronics and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korea FSS Shakes Up Rights Offerings – Special Review Rule Now Live
  • Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (January and February 2025)

Korea FSS Shakes Up Rights Offerings – Special Review Rule Now Live

By Sanghyun Park

  • With this new rule, the FSS is flagging shaky rights offerings early, signaling a likely correction request—and often, the first step toward the deal getting axed.
  • Spot the red flags early and use the window before the FSS drops the hammer to position for a reversal play.
  • The FSS’s early notice makes a reversal likely as traders bet on the deal getting nuked after the initial disclosure drop.

Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (January and February 2025)

By Douglas Kim

  • In this insight, we discuss the alpha generation through companies that announced share buybacks in the Korean stock market in January and February 2025.
  • There were 37 companies in the Korean stock market that announced share buybacks in the past two months. On average, the share buyback announcements represented 2.3% of outstanding shares.
  • Some of the notable share buybacks by Korean companies in the past two months include Samsung Electronics, Celltrion, Hyundai Mobis, and INFOvine.

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Feb 27
0

Daily Brief South Korea: Korea Stock Exchange KOSPI 200, T’Way Air, Posco International Corporation and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korean IPOs: Cornerstone Bill Back in Play—This Time, It Might Stick
  • StubWorld: Daemyung Sono Takes Control Of T’Way Holdings (004870 KS)
  • POSCO Int & Seah Steel Holdings: Key Beneficiaries of Trump’s Plan to Develop Alaskan Gas Fields

Korean IPOs: Cornerstone Bill Back in Play—This Time, It Might Stick

By Sanghyun Park

  • The odds of the cornerstone system getting the green light are significantly higher than they were two years ago.
  • With bills typically taking a year to kick in, we need to stay on this—if all goes smoothly, cornerstone investors could hit Korean IPOs as early as next year.
  • In the early stages, cornerstone allocations will be key to shaping our IPO trading playbook. Staying ahead of these shifts is crucial.

StubWorld: Daemyung Sono Takes Control Of T’Way Holdings (004870 KS)

By David Blennerhassett

  • Daemyung Sono Group will acquire a controlling 46.26% stake in T’Way Holdings (004870 KS) (THI) held by Yearimdang Publishing (036000 KS). THI looks stretched.
  • Preceding my comments on the T’way Group are the current setup/unwind tables for Asia-Pacific Holdcos.
  • These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

POSCO Int & Seah Steel Holdings: Key Beneficiaries of Trump’s Plan to Develop Alaskan Gas Fields

By Douglas Kim

  • Posco International Corporation (047050 KS) and SeAH Steel Holdings (003030 KS) are two key beneficiaries of the Trump administration’s efforts to significantly increase the Alaskan gas fields.
  • The initial estimated cost of this massive project is about $44 billion for the pipeline and related infrastructure.
  • Despite recent rallies, the valuations of POSCO International and Seah Steel Holdings remain attractive. 

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Feb 26
0

Daily Brief South Korea: Korea Stock Exchange KOSPI 200, Dozn, Celltrion Inc and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korea: Short Selling Is Back in March; Trade Ideas
  • Dozn IPO Preview
  • Celltrion (068270 KS): Record High Sales in 4Q; Sequentially Weaker Profit; Solid Outlook for 2025

Korea: Short Selling Is Back in March; Trade Ideas

By Brian Freitas

  • Since short selling was banned in November 2023, short interest has plunged in Korea as shorts were covered. Markets have not done much over the last 16 months though. 
  • Foreign investor holdings have dropped from 32.05% in July to 28.57%. The top 25 stocks bought by foreign investors outperformed the top 25 stocks sold by 128% in 16 months.
  • There will be trade opportunities across indices, pref/ords, index migrations and deletions, potential market upgrades and overvalued stocks being sold.

Dozn IPO Preview

By Douglas Kim

  • Dozn is getting ready to complete its IPO in Korea in March 2025. The company plans to offer 2.5 million shares in this IPO.
  • The IPO price range is from 10,250 won to 12,500 won per share and the offering amount ranges from 26.2 billion won to 31.2 billion won.
  • Founded in 2017, Dozn is emerging as a prominent business-to-business (B2B) digital solution service provider in Korea.

Celltrion (068270 KS): Record High Sales in 4Q; Sequentially Weaker Profit; Solid Outlook for 2025

By Tina Banerjee

  • Celltrion Inc (068270 KS) achieved 178% YoY and 21% QoQ revenue growth to KRW1,064B in 4Q24, driven by rapid growth of new products such as Remsima SC, Yuflyma, and Steqeyma.
  • Celltrion guided for 2025 revenue of KRW5.0T, up 43% YoY. Celltrion is targeting COGS ratio in 20%s by 4Q25. Operating profit margin is expected to recover to 30%s in 2025.  
  • New launches, COGS improvement, and cost efficiency will drive 2025 growth. This year, Celltrion received European approval for four biosimilars and three biosimilars are under regulatory review in the U.S.

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