Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Square Spread Compression on Early August Hynix Buyback Narrative

Investigation into Hynix ADR Fungibility Restoration and Key Open Questions

Latest Read on Hynix Shareholder Return and Solidigm Since Last Friday’s Filings

KSD Confirms Hynix ADR 2.5% Hard Cap, Only Hynix Can Expand It. Outlook on the Actual Playbook

On Headlines that Hynix Will Fully Block ADR Conversion

Hynix ADR Conversion Goes Live: Quota Hunting Dynamics to Watch

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>The prior base case was a late October 3Q earnings buyback announcement, followed by a 2~2.5% SO repurchase over six months, but that view is starting to lose traction.</li>
<li>Hynix may avoid it due to cash burn risks amid memory pivot concerns, meaning the expected buyback announcement may not happen.</li>
<li>Hynix may use ADR arb flows to support local shares, with KRW 1.46 million to KRW 1.50 million viewed as the trigger zone at around 2.0x forward PBR.</li>
</ul>


The prior base case was a late October 3Q earnings buyback announcement, followed by a 2~2.5% SO repurchase over six months, but that view is starting to lose traction.
Hynix may avoid it due to cash burn risks amid memory pivot concerns, meaning the expected buyback announcement may not happen.
Hynix may use ADR arb flows to support local shares, with KRW 1.46 million to KRW 1.50 million viewed as the trigger zone at around 2.0x forward PBR.


Hynix ADR Conversion Pool Opening: The Only Realistic Path Forward

SK Hynix

Hynix ADR Conversion Pool Opening: The Only Realistic Path Forward