South Korea Archives | Page 29 of 127 | Smartkarma

Samsung Life Insurance (032830 KS) and Samsung Fire & Marine Insurance (000810 KS) plan to sell about 278 billion won of Samsung Electronics (005930 KS) in block deal sales.
A total of 5 million shares of Samsung Electronics shares that are expected to be sold in this block deal sale represents 0.1% of Samsung Electronics’ outstanding shares.
If Samsung Life Insurance is able to sell 4.256 million shares of Samsung Electronics for 236.4 billion won, this would represent 1.3% of Samsung Life Insurance’s market cap.

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Feb 11

Daily Brief South Korea: T’Way Air, Samsung SDS, Hyundai Motor India , Hanwha Aerospace, Miwon Specialty Chemical, Philoptics Co Ltd., Samsung Electronics and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

New Tender Trigger in Korea: Small Shareholder Collective Action Via Online Platform on T’way Air
Sharing Intel from IR on the Growing Market Interest in Samsung SDS’s Special Dividend
NIFTY NEXT50 Index Rebalance Preview: Final List of Potential Changes in March
Hanwha Aerospace Acquiring Additional 7.3% Stake in Hanwha Ocean for About 1.3 Trillion Won
[Quiddity Index Feb25] KOSPI 200 Leaderboard Jun25: We See 6 Changes Possible
KOSDAQ150 Index Rebalance Preview: 10 Changes a Side; Strong Outperformance
Samsung Electronics – Positive Impact from the Potential Involvement in the Stargate Project

New Tender Trigger in Korea: Small Shareholder Collective Action Via Online Platform on T’way Air

ACT’s team for T’way Air’s small shareholders plans to push for a public tender offer once they reach the 3% stake threshold.
Sono may shift its stance on a public tender offer. With a 3% stake gap, Sono must appease retail shareholders before the AGM, especially after the rights offering backlash.
FSC probe shows info leaks from brokers and law firms still trigger volume volatility before tender offers. Monitor T’way Air’s trading volume closely until February’s end.

Sharing Intel from IR on the Growing Market Interest in Samsung SDS’s Special Dividend

SDS seems to wait until after Samsung Electronics and C&T announce their value-up plans. Key dates: JPM IR event on 21st and Board meeting on Feb 18.
I think they’re leaning toward a special dividend instead of increasing the base payout, based on the tone during our chat.
The prosecutor’s third-instance appeal likely won’t delay the value-up announcement, as it usually takes a year for a decision, and is unlikely to affect JY Lee or Samsung’s plans.

NIFTY NEXT50 Index Rebalance Preview: Final List of Potential Changes in March

With the review period now complete, there could be 7 changes (including 2 migrations) for the NSE Nifty Next 50 Index (NIFTYJR INDEX) in March.
Bajaj Housing Finance (BHF IN) and Swiggy (SWIGGY IN) are a hair’s breadth apart on market cap and only one of them could be added to the index.
With quantitative criteria now being used to add stocks to the F&O segment, it is possible there is no change to the index methodology to limit inclusion to F&O members.

Hanwha Aerospace Acquiring Additional 7.3% Stake in Hanwha Ocean for About 1.3 Trillion Won

Hanwha Aerospace announced that it plans to purchase a 7.3% stake in Hanwha Ocean.
This 7.3% stake in Hanwha Ocean is currently worth about 1.3 trillion won (US$0.9 billion). After this purchase, Hanwha Aerospace’s stake in Hanwha Ocean will increase from 23.14% to 30.44%.
There could be a further positive momentum on Hanwha Aerospace in the near-term due to its positive earnings report in 4Q24 combined with acquisition of additional stake in Hanwha Ocean.

[Quiddity Index Feb25] KOSPI 200 Leaderboard Jun25: We See 6 Changes Possible

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).
In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2025.
We expect six ADDs and six DELs for the KOSPI 200 index during the June 2025 index rebal event based on the latest available data.

KOSDAQ150 Index Rebalance Preview: 10 Changes a Side; Strong Outperformance

Just over halfway through the review period for the June rebalance of the KOSDAQ 150 Index (KOSDQ150 INDEX), there could be 10 constituent changes.
The estimated impact on the potential inclusions ranges from 0.03-3.6 days of ADV while the impact on the potential deletions varies from 0.8-4.3 days of ADV.
The list of forecast adds and deletes has been fairly stable over the last month. The forecast adds have run up at a blistering pace and outperformed the forecast deletes.

Samsung Electronics – Positive Impact from the Potential Involvement in the Stargate Project

Samsung Electronics (005930 KS)’s shares were up 3.5% (55,600 won) while KOSPI was down 0.3% today. We believe there were two major reasons for this.
First, there was a recent meeting among Lee Jae Yong (Samsung Electronics), Masayoshi Son (Softbank), and Sam Altman (Open AI) regarding a potential alliance regarding the new Stargate Project.
Second, there has been increased speculation regarding additional total shareholder returns measures by Samsung Electronics that could be announced in the coming weeks.

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Feb 09

Daily Brief South Korea: Korea Stock Exchange KOSPI 200 and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

EQD | Kospi Index Options Weekly (February 03 – 07): Implied Vol Does a Roundtrip

EQD | Kospi Index Options Weekly (February 03 – 07): Implied Vol Does a Roundtrip

By John Ley

Implied vols rose 2.22 points in Monday’s sell off but round-tripped on the week, giving all the gains back by Friday.
Rough start to the week amid tariff talk, Kospi dropping 2.64%.
At this level we expect implied vol to remain more reactive to price shocks than we have seen over the past two months.

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Feb 08

Daily Brief South Korea: Hyundai Motor and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Korea’s First ATS Launching March 4: Arb Opportunities to Watch

Korea’s First ATS Launching March 4: Arb Opportunities to Watch

Korea’s first ATS goes live on March 4, starting with 10 tickers based on liquidity and market cap, expanding to 800 over time. First 10 revealed next week.
KRX vs ATS arbitrage will be key, with execution speed differences causing price dislocations, especially for KOSPI 200 stocks. Lower ATS fees may shift institutional flow, increasing arb opportunities.
On top of that, lack of market makers could widen bid-ask spreads, creating opportunities for spread scalpers to profit.

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Feb 07

Daily Brief South Korea: Englewood Lab, Samsung Card Co, EcoPro Materials, SK Biopharmaceuticals and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

A Partial Tender Offer of Englewood Lab by Cosmecca Korea
Making a Call on when Samsung’s Financial Arms Will Drop Their Value-Up Announcements
Ecopro Materials Block Deal Timing Closing In: Breaking Down the Situation
SK Biopharmaceuticals (326030 KS): Records Maiden Profit in 2024; Momentum to Continue

A Partial Tender Offer of Englewood Lab by Cosmecca Korea

On 6 February, Cosmecca Korea (241710 KS) launched a partial tender offer on Englewood Lab (950140 KS).
Cosmecca Korea announced that it plans to purchase 11% (2.185 million) of Englewood Lab’s outstanding shares at the tender offer price of 10,000 won.
It appears that this partial tender offer is an attempt by Cosmecca Korea to increase its stake in Englewood Lab even further, capitalizing on the lower share price.

Making a Call on when Samsung’s Financial Arms Will Drop Their Value-Up Announcements

Samsung Life’s value-up disclosure: we should expect it with Q4 earnings on the 20th—every local desk and media outlet is eyeing that date.
Unlike Samsung Life, Samsung Securities is tight-lipped. Earnings are set for Feb 14, but expect the value-up announcement after Feb 20, likely before early March and AGM season.
Tomorrow’s unlikely for Samsung Card’s value-up disclosure. It’s holding off until the card fee recalculation is finalized—likely after February or before mid-March, ahead of AGM season.

Ecopro Materials Block Deal Timing Closing In: Breaking Down the Situation

Yoon Kwan’s appeal won’t change much—it’s just stalling. His tax uncertainty is now priced in, so the reason to delay selling his EcoPro M stake is quickly fading.
The BRV block deal won’t follow the new pre-disclosure rule, as Yoon’s likely to classify BRV as a financial investor, so no one-month heads-up.
The deal’s likely in 2-3 weeks; volume will spike 2-3 days before. Once we catch the signals, it’s time to position for the EcoPro M block trade.

SK Biopharmaceuticals (326030 KS): Records Maiden Profit in 2024; Momentum to Continue

By Tina Banerjee

SK Biopharmaceuticals (326030 KS) reported first-ever annual operating and net profit of KRW96B and KRW227B, respectively in 2024. In 2023, operating and net loss stood at KRW38B and KRW35B, respectively.
The company has turned profitable in 2024 driven by continued momentum of Xcopri in U.S. For 2024, Xcopri recorded revenue of $321.6M in the U.S., exceeding guidance of $300–320M.
For 2025, SKBP has guided for Xcopri U.S. revenue of $420–450M (~KRW570–610B), up 31–40% YoY. The company expects 2025 SG&A expenses will be KRW490B, up 20% YoY.

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Feb 06

Daily Brief South Korea: Young Poong, Samsung C&T and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Must Asset Mgmt Goes Activist on Young Poong
Acquittal of Lee Jae-Yong and Impact on Samsung C&T

Must Asset Mgmt Goes Activist on Young Poong

Must Asset Management, a 3% shareholder of Young Poong (000670 KS), started to go activist on the company on 5 February.
Based on current market cap, this would represent a P/B of 0.2x using the consolidated controlling interest equity of 3.9 trillion won!
There is some speculation that Must Asset Mgmt may form an alliance with Chairman Choi’s family as it proposed to Young Poong to recommend outside directors.

Acquittal of Lee Jae-Yong and Impact on Samsung C&T

Now that Lee Jae-Yong’s legal problems appear to have finally have been resolved, it could positively impact Samsung C&T, Samsung Electronics, and Samsung Biologics.
Given the fact that Samsung Electronics and Samsung Biologics are the two most important drivers of Samsung C&T, this could positively benefit the valuation of Samsung C&T.
Our NAV analysis of Samsung C&T suggests NAV of 38.7 trillion won or NAV per share of 217,747 won which is 84% higher from current levels.

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Feb 05

Daily Brief South Korea: Netmarble , LG CNS, Samsung Fire & Marine Insurance, Alteogen Inc, Hana Financial and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Korea: 11 Potential Index Deletions in February
LG CNS: First Day Trading Strategy Post IPO
Samsung Life Insurance Is Considering on Incorporating Samsung F&M Insurance as a Subsidiary
Alteogen (196170 KS): More ALT-B4 Licensing Deal to Follow; Fund Raise Wipes Off Uncertainty
Hana Financial: Share Buyback and Cancellation of 400 Billion Won + 50% Total Shareholder Return

Korea: 11 Potential Index Deletions in February

There are 11 stocks (maybe 12) in Korea that could be deleted from a global index in February and that will result in large selling from passive trackers.
With announcement in a week and implementation in just over 3 weeks, there is positioning in a lot of the names.
With short selling still banned, positioning will not be as high as the passive selling and the stocks could still drop over the next few weeks.

LG CNS: First Day Trading Strategy Post IPO

In this insight, we discuss the first day trading strategy of LG CNS which starts trading on 5 February.
On the first day of trading, we believe LG CNS’s shares could trade at higher levels, overshooting its intrinsic valuations.
We recommend investors to take some profits off the table if the share price shoots higher by 30% to 50%+ from the IPO price on the first day.

Samsung Life Insurance Is Considering on Incorporating Samsung F&M Insurance as a Subsidiary

After the market close on 4 February, several local news outlets reported that Samsung Life Insurance is considering on incorporating Samsung Fire & Marine Insurance as a subsidiary.
Share cancellation by Samsung F&M Insurance would lead to an increase in ownership stake of Samsung F&M Insurance by Samsung Life Insurance which would violate the current Insurance Business Act.
It is unlikely for Samsung Life Insurance to sell some of its stake in Samsung F&M Insurance, but Samsung Life Insurance could increase its stake in Samsung F&M Insurance.

Alteogen (196170 KS): More ALT-B4 Licensing Deal to Follow; Fund Raise Wipes Off Uncertainty

By Tina Banerjee

In November 2024, Alteogen Inc (196170 KS) entered into an exclusive license agreement with Daiichi Sankyo for an upfront payment of $20M (KRW28B).
With increasing number of players developing ADC drugs mainly targeting various cancers, we can expect more big-ticket licensing deals for ALT-B4, going ahead.
On February 4, Alteogen has raised ~KRW155B through redeemable convertible preference shares. Over the last few months, Alteogen shares had a roller coaster ride due to fund raising rumors.

Hana Financial: Share Buyback and Cancellation of 400 Billion Won + 50% Total Shareholder Return

On 4 February, Hana Financial (086790 KS) announced a share buyback and cancellation of 400 billion won worth of treasury shares, representing 2.3% of its market cap.
Hana Financial plans to achieve a total shareholder return ratio of 50% by 2027. Its total shareholder return ratio increased to 37.8% in 2024, up 4.8% YoY.
Hana Financial’s total cash dividend per common share is 3,600 won in 2024 (up 5.9% YoY). Hana Financial’s total shareholder return ratio increased to 37.8% in 2024, up 4.8% YoY.

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Feb 04

Daily Brief South Korea: Samsung Life Insurance, HD Hyundai Marine Solution , LG CNS, T’Way Air, Pulmuone Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Lee Jae-Yong’s Appeal Verdict: Unpacking the Drivers Behind Samsung Life’s Big Price Action
KOSPI200 Index Rebalance Preview: 6 Potential Changes in June; LG CNS Listing Could Increase That
LG CNS IPO: Trading Debut
Daemyung Sono Group May Wage a Public Opinion War for T’Way Air
LG CNS IPO Trading – Demand Aided by Domestics, Limited Lockup Undertaking
Korea Small Cap Gem #32: Pulmuone

Lee Jae-Yong’s Appeal Verdict: Unpacking the Drivers Behind Samsung Life’s Big Price Action

Once Samsung F&M burns treasury shares, Samsung Life’s stake hits 16.93%. If they avoid a subsidiary, they’ll need to dump ~817K shares. Today’s ruling makes that move much less likely.
Samsung Life’s value-up announcement could be major, likely dropping around their earnings call on February 20, with solid intel backing this move.
The balance of dividends vs. buybacks, plus Samsung Life’s 10% stake ceiling, will drive volatility for Samsung Electronics. Samsung Life’s value-up release, before Samsung Electronics’, will boost market clarity.

KOSPI200 Index Rebalance Preview: 6 Potential Changes in June; LG CNS Listing Could Increase That

Halfway through the review period, there could be 6 changes for the Korea Stock Exchange KOSPI200 (KOSPI2 INDEX) in June. The LG CNS (LGCNSZ KS) listing could increase that number.
The impact on the potential inclusions ranges from 2.1-26 days of ADV while the impact on the potential deletions varies from 5-11 days of ADV.
The forecast adds have outperformed the forecast deletes over the last few months and the performance gap is near its widest point.

LG CNS IPO: Trading Debut

By Arun George

LG CNS (LGCNSZ KS) priced its IPO at KRW61,900 per share to raise gross proceeds of US$820 million. The shares will start trading on 5 February.
We previously discussed the IPO in LG CNS IPO: The Bull Case, LG CNS IPO: The Bear Case and LG CNS IPO: Valuation Insights.
Since the prospectus’s release, the peers have marginally re-rated. The valuation remains undemanding at the IPO price, and bullish grey market prices suggest a strong debut.

Daemyung Sono Group May Wage a Public Opinion War for T’Way Air

In the past two trading days, share prices of T’Way Air (091810 KS) and T’Way Holdings (004870 KS) are down 16.4% and 14.1%, respectively.
According to Hankyung daily, Daemyung Sono Group Chairman Seo may choose to wage a public opinion war, instead of purchasing additional shares.
If Daemyung Sono Group is unable to take over the management control of T’Way Air using this method, then a potential tender offer of T’Way Air is possible later on.

LG CNS IPO Trading – Demand Aided by Domestics, Limited Lockup Undertaking

By Clarence Chu

LG CNS (LGCNSZ KS) raised around US$825m in its Korea IPO. LG CNS is a South Korean information technology company.
LG CNS is a South Korean information technology company. The firm primarily provides comprehensive digital transformation services and solutions backed AI, big data, and cloud.
In this note, we will talk about the demand for the deal and other trading dynamics.

Korea Small Cap Gem #32: Pulmuone

Pulmuone has benefited from improved sales and profitability of its US subsidiary, driven by higher demand for Korean foods and plant based/non-meat based foods such as tofu.
The company has nearly 70% market share in the tofu segment in the US. It has gained meaningful economies of scale of its tofu product in the United States.
Pulmuone currently has a market cap of 390 billion won. Using the consensus net profit estimate of 37.6 billion won, this would suggest a P/E of 10.3x.

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Feb 03

Daily Brief South Korea: Legochem Biosciences, LG CNS and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

KRX New Deal Index Rebalance Preview: Smaller Deal Than Usual
ECM Weekly (3rd Feb 2025) – Seoul Guarantee, Dr Agarwal’s, Ather Energy, Hexaware, Visen Pharma

KRX New Deal Index Rebalance Preview: Smaller Deal Than Usual

The review period for the March rebalance ended on 31 January, changes will be announced first week of March and implemented at the close of trading on 13 March.
We forecast two changes for the Bio Index and one change for the Internet Index. Plus there will be capping changes for all indices.
The largest flows will be in Samsung SDI, LG Energy Solution, POSCO Holdings, Alteogen, Naver Corp, Legochem Biosciences, Netmarble and Celltrion Inc.

ECM Weekly (3rd Feb 2025) – Seoul Guarantee, Dr Agarwal’s, Ather Energy, Hexaware, Visen Pharma

By Sumeet Singh

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, we had a look at the valuations for Dr. Agarwal’s Eye Hospital and Seoul Guarantee Insurance (031210 KS).
On the placements front, given the holiday shortened week, there were no placements this week.

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Feb 02

Daily Brief South Korea: Samsung Fire & Marine Insurance and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Samsung Fire & Marine Insurance: Strong Corporate Value Up Plan

Samsung Fire & Marine Insurance: Strong Corporate Value Up Plan