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South Korea Archives | Page 32 of 127 | Smartkarma

Jan 10
0

Daily Brief South Korea: Dongwon Industries, Shift Up and more

By | Daily Briefs, South Korea

In today’s briefing:

  • [Quiddity Index Jan25] KOSPI 200 Leaderboard Jun25: Up to 6 Changes Possible
  • Shift Up IPO Lockup – US$1.2bn Lockup Release of Strategic, Employees and IPO Investors

[Quiddity Index Jan25] KOSPI 200 Leaderboard Jun25: Up to 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 this index rebal event based on the latest available data.

Shift Up IPO Lockup – US$1.2bn Lockup Release of Strategic, Employees and IPO Investors

By Sumeet Singh

  • Shift Up (462870 KS) raised around US$320m in its South Korean IPO, after pricing at the top. Around US$1.2bn worth of shares will be released from their lockup soon.
  • Shift Up is a South Korean games developer, which as released three games so far for the global markets.
  • In this note, we will talk about the lockup dynamics and possible placement.

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Jan 09
0

Daily Brief South Korea: LG Corp and more

By | Daily Briefs, South Korea

In today’s briefing:

  • The Unexpected Passive Trade from the LG CNS IPO: Short LG Corp

The Unexpected Passive Trade from the LG CNS IPO: Short LG Corp

By Sanghyun Park

  • I’m focusing on the price action of LG Corp when LG CNS enters the KOSPI 200 IT sector, causing LG Corp to be removed from the index.
  • With LG Corp’s 6% weight, its removal could trigger ETF rebalancing (TIGER), leading to an outflow exceeding twice the usual daily trading volume.
  • If LG CNS misses Fast Entry, it’ll enter in December, not June. We’ll time our short position on LG Corp to align with passive outflows during that window.

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Jan 08
0

Daily Brief South Korea: DN Automotive and more

By | Daily Briefs, South Korea

In today’s briefing:

  • DN Automotive NAV Valuation Analysis

DN Automotive NAV Valuation Analysis

By Douglas Kim

  • According to our NAV valuation analysis, it suggests NAV per share of 25,624 won for DN Automotive which is 35% higher than current price.
  • We assumed DN Automotive’s estimated post IPO stake of DN Solutions (72.2% stake) would be worth about 4 trillion won. 
  • We used a very large holdco discount rate of 70%. DN Automotive is not a pure holdco company but a quasi holding company.

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Jan 07
0

Daily Brief South Korea: Korea Stock Exchange KOSPI 200, LG Corp, Korea Zinc, Coway Co Ltd, Gold and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korea Short Selling Comeback: How Pre-Registering Accounts Will Affect the Trading Scene
  • LG Corp Plans to Buy 250 Billion Won of LG Chem and LG Electronics + 2 Major LG Group IPOs in 2025
  • NPS Stake in Korea Zinc Revealed: EGM Vote Locked, Short Play in Focus
  • Coway: Doubling Total Shareholder Returns to 40% of Consolidated Net Income
  • EQD | Asia January Vol Roadmap:    Outsized Moves, Outsized Volatility

Korea Short Selling Comeback: How Pre-Registering Accounts Will Affect the Trading Scene

By Sanghyun Park

  • KRX and FSS confirmed the NSDS is ready and account registration numbers will be issued, confirming short selling will resume on April 1st, despite no official FSC statement yet.
  • Today’s buzz is about pre-registration for short selling, with FSS tracking accounts down to individual desks. This could limit short-selling flexibility, despite addressing the overseas lending issue.
  • Exposing too much info on short-selling accounts could shrink securities lending participants, causing supply-demand imbalances, spiking borrowing fees, and creating unique trading opportunities early on.

LG Corp Plans to Buy 250 Billion Won of LG Chem and LG Electronics + 2 Major LG Group IPOs in 2025

By Douglas Kim

  • On 6 January, LG Corp announced that it plans to purchase 250 billion won worth of LG Electronics and LG Chem from 6 January to 7 March 2025.
  • The share buybacks would represent 1.5% and 0.7% of LG Chem and LG Electronics’ market cap, respectively.
  • Our base case NAV valuation analysis of LG Corp suggests implied NAV of 14.7 trillion won or NAV per share of 93,430 won, which is 25% higher than current price.

NPS Stake in Korea Zinc Revealed: EGM Vote Locked, Short Play in Focus

By Sanghyun Park

  • NPS’s stake has dropped, and most minority shareholders are passive. NPS might oppose cumulative voting, so Choi’s chances of getting 67% support at the EGM on the 23rd are slim.
  • The showdown is between MBK’s 14 picks and Choi’s 7. Without cumulative voting, even with NPS’s shares, Choi’s chances of beating MBK are slim.
  • If you’re short on Korea Zinc, holding seems fine. Backwardation in Jan-Feb futures isn’t steep, so a new position before the EGM could also be worth a shot.

Coway: Doubling Total Shareholder Returns to 40% of Consolidated Net Income

By Douglas Kim

  • Coway announced a significantly higher total shareholder return plan, nearly doubling total shareholder returns of consolidated net income from current 20% to about 40% in the next three years.
  • Coway has low valuation multiples. It is currently trading at EV/EBITDA of 4.1x, P/E of 8.1x, and P/B of 1.4x based on 2025 consensus earnings estimates.
  • We believe that the combination of improved shareholder returns and low valuation multiples are likely to lead to outperformance of Coway versus the market in the next 6-12 months. 

EQD | Asia January Vol Roadmap:    Outsized Moves, Outsized Volatility

By John Ley

  • Gold is historically a strong January performer, rising 65% of the time. Nifty declines 70% of the time in January with all January’s since 2019 negative.
  • Wide gap in Kospi vs Nikkei implied vol when viewed in light of their respective price performances over the past 1 and 3 months.
  • Most markets typically see peak volatility in the first week of the month with prices typically trading heavy in the 2nd half of the month.

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Jan 06
0

Daily Brief South Korea: LG CNS and more

By | Daily Briefs, South Korea

In today’s briefing:

  • LG CNS IPO: Valuation Insights

LG CNS IPO: Valuation Insights

By Arun George

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Jan 05
0

Daily Brief South Korea: Dong Ah Tire Ind Co., Ltd. and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Initial Thoughts on the DN Solutions IPO

Initial Thoughts on the DN Solutions IPO

By Douglas Kim

  • DN Solutions is planning to complete its IPO in Korea in 2025. The expected value of DN Solutions is estimated to be about 5 trillion won to 6 trillion won.
  • DN Solutions’ revenue and operating profit increased at CAGR of 19.9% and 62.2%, respectively from 2020 to 2023.
  • Currently, the largest shareholder of DN Solutions is GMT Holdings which has a 90.32% stake. DN Automotive (007340 KS) owns a 100% stake in GMT Holdings.

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Jan 04
0

Daily Brief South Korea: Rainbow Robotics, LG CNS, Orum Therapeutics and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Samsung Group ETF Rebalancing Event to Watch for in June
  • LG CNS: Updated IPO Valuation Analysis
  • Orum Therapeutics Lowers IPO Price Range

Samsung Group ETF Rebalancing Event to Watch for in June

By Sanghyun Park

  • With Samsung finalizing the call option on Rainbow Robotics in February, the FTC will add it to Samsung Group in March, ensuring its inclusion in the ETF by June.
  • With the market cap boost from the call option, Rainbow Robotics is set to easily exceed 2% weight in the ETF by June.
  • The rebalancing from June 2-9 will direct 30% of daily volume into Rainbow Robotics, likely enough to move the needle on price action, especially on the first day.

LG CNS: Updated IPO Valuation Analysis

By Douglas Kim

  • According to our updated valuation analysis of LG CNS, it suggests a base case implied market cap of 7.4 trillion won, representing target price of 76,383 won per share. 
  • Our base case valuation target price of 76,383 won is 23% higher than the high end of the IPO price range. 
  • We lowered our target price by 6%, mainly due to greater political risks arising from the recent cancelled martial law and ongoing impeachment of President Yoon.

Orum Therapeutics Lowers IPO Price Range

By Douglas Kim

  • Orum Therapeutics (475830 KS) has lowered its IPO price range to 24,000 won to 30,000 won.
  • The IPO offering amount will be between 60 billion won to 75 billion won. The expected market cap of the IPO is between 531 billion won to 664 billion won. 
  • Our updated valuation of Orum Therapeutics suggests implied target price of 24,939 won per share, which is 8% lower than the mid-point of the revised down IPO price range. 

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Jan 03
0

Daily Brief South Korea: Amorepacific Corp (Preferred), HD Hyundai , Korea Stock Exchange KOSPI 200, LG CNS, SGX Rubber Future TSR20 and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 1Q 2025
  • Palantir’s Influence on the Political Rallies in Korea & HD Hyundai’s 34% Stake in Palantir Korea
  • EQD | KOSPI 200 Index – Buy January Straddle
  • LG CNS IPO: The Bear Case
  • China Slaps ADD On Japanese & S Korean Nitrile Rubber

Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 1Q 2025

By Douglas Kim

  • In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 1Q 2025.
  • Among the 27 major pair trades (prefs vs. common shares), 20 of the pref stocks outperformed their common shares counterparts in 2024.
  • The 27 Korean preferred stocks’ average prices declined by 1% from end of 2023 to end of 2024 (excluding dividends), outperforming their common counterparts which were down on average 3.7%.

Palantir’s Influence on the Political Rallies in Korea & HD Hyundai’s 34% Stake in Palantir Korea

By Douglas Kim

  • In this insight, we discuss the increasing importance of Palantir Technologies (PLTR US) on influencing the political rallies in Korea. 
  • In addition, we discuss how HD Hyundai’s 34% ownership of Palantir Korea is likely to improve the positive sentiment on HD Hyundai. 
  • Our sum-of-the-parts valuation analysis of HD Hyundai suggests implied market cap of 11 trillion won or target price of 139,845 won per share (63% upside from current levels).

EQD | KOSPI 200 Index – Buy January Straddle

By John Ley

  • The implied move for January is less than what has been historically experienced. Sixteen of the last 26 years have had price movement > current implied move.
  • January punches above its weight in terms of both historic volatility (most volatile month) and the amount of price movement relative to that historic volatility.
  • Trades at the current implied move historically would have been winners 61.5% of the time with the average winner being more than double the average loser. 

LG CNS IPO: The Bear Case

By Arun George

  • LG CNS (LGCNSZ KS), the IT service unit of LG Corp (003550 KS), seeks to raise up to US$837 million through a primary/secondary offering.
  • In LG CNS IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
  • The bear case rests on fading growth momentum, mid-tier revenue growth, weak non-AI growth, high contract assets, bottom-tier FCF margin and large share overhang. 

China Slaps ADD On Japanese & S Korean Nitrile Rubber

By Vinod Nedumudy

  • ADD on NBR imports from Japan, South Korea extended to five years
  • Chinese companies beef up domestic carbon black production
  • ZC Rubber unveils US$259 million and Longxing US$405 million projects

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Jan 02
0

Daily Brief South Korea: Samsung C&T, KT&G Corporation and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korean Holdcos Vs Opcos Gap Trading Opportunities in 1Q 2025
  • Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (November and December 2024)

Korean Holdcos Vs Opcos Gap Trading Opportunities in 1Q 2025

By Douglas Kim

  • In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 1Q 2025.
  • The recent martial law cancellation and numerous impeachments of acting Presidents have raised political uncertainty in Korea resulting in widening of some gaps among numerous holdcos and opcos in Korea.
  • Of the 38 pair trades, 25 of them involved holdcos outperforming opcos in the past six months and the other 13 opcos outperforming holdcos in the same period.

Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (November and December 2024)

By Douglas Kim

  • In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in November and December 2024.
  • On average, the share buyback announcements for the 52 companies that announced share buybacks in Korea represented 2.2% of outstanding shares.
  • Major companies that have announced share buybacks in Korea in the past two months include Celltrion, Samsung Electronics, Doosan Bobcat, and Hyundai Motor. 

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Dec 31
0

Daily Brief South Korea: Binggrae Co Ltd and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Our Screening Process Methodology for Picking Top Small Cap Stocks in KOSPI in 2025

Our Screening Process Methodology for Picking Top Small Cap Stocks in KOSPI in 2025

By Douglas Kim

  • In this insight, we provide our screening process methodology for picking top small cap stocks in KOSPI in 2025. 
  • We used a 7 step process to narrow down a list of 30 stocks in KOSPI including market cap, ROE, sales growth, P/E, P/B, and Smartscore.  
  • The top five stocks on the Korean small cap stocks screen include Binggrae, Innocean Worldwide, Hanil Holding, Miwon Chemicals, and Daechang Forging.

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