Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Nuclear Power: The Best Performing Sector in the Korean Stock Market in 2021 - Why?

Doosan Infracore Rebalancing Trading on June 28 & Outright Short-Selling Opportunity

Doosan Infracore Announces a Rights Offering Worth 70% of Its Market Cap

Creditors and the Market Like the New Doosan Infracore Split-Off and M&A Plan

Doosan Infracore: Investco Split Off & Merger Ratio Announced

Event-Driven

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<p>We continue to have a positive view of Doosan Infracore. The fundamentals are improving significantly and the shorts need to cover more before the stock is suspended from trading on 29 June. The price ratio between Doosan Infracore/DHIC recently peaked on 12 May to 0.87 and has been declining since then to 0.66. So on a relative basis, we think that Doosan Infracore could outperform DHIC this month. </p>
<p>Over a longer view (1-2 years), DHIC can benefit from increased exports of SMR nuclear power and if the opposition party wins the Presidency in South Korea next March, this could also fuel higher demand for nuclear power in Korea which should benefit DHIC. Due to the sharp increase in its share price in the past few weeks, DHIC's shares could enter a correction in the near term, but we would not short it at current levels.</p>
<p>Certainly, many investors are betting against DHIC right now, especially in the past one month. However, we believe that the tides are turning big time for nuclear power (in both South Korea and for exports through SMR). DHIC has the best technology and expertise for nuclear power in South Korea and if there are greater demand for nuclear power for both exports as well as in Korea, DHIC would be the number one company to benefit from this trend. </p>
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We continue to have a positive view of Doosan Infracore. The fundamentals are improving significantly and the shorts need to cover more before the stock is suspended from trading on 29 June. The price ratio between Doosan Infracore/DHIC recently peaked on 12 May to 0.87 and has been declining since then to 0.66. So on a relative basis, we think that Doosan Infracore could outperform DHIC this month. 
Over a longer view (1-2 years), DHIC can benefit from increased exports of SMR nuclear power and if the opposition party wins the Presidency in South Korea next March, this could also fuel higher demand for nuclear power in Korea which should benefit DHIC. Due to the sharp increase in its share price in the past few weeks, DHIC's shares could enter a correction in the near term, but we would not short it at current levels.
Certainly, many investors are betting against DHIC right now, especially in the past one month. However, we believe that the tides are turning big time for nuclear power (in both South Korea and for exports through SMR). DHIC has the best technology and expertise for nuclear power in South Korea and if there are greater demand for nuclear power for both exports as well as in Korea, DHIC would be the number one company to benefit from this trend. 


Declining Shorts for Doosan Infracore & A Big Jump in Shorts for Doosan Heavy Industries

HD Hyundai Infracore

Declining Shorts for Doosan Infracore & A Big Jump in Shorts for Doosan Heavy Industries