Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Local Read Through on Samsung Special Dividend Sizing for This Year

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Event-Driven

Samsung Electronics Pref Shares / Event-Driven

Samsung Electronics Pref Shares (005935 KS)

<ul>
<li>Despite KRW 37T headline cost, cash impact is mainly tax, so FCF drag is limited; street sees KRW 125T returns split into KRW 10T base dividend, 45T special, 70T buybacks.</li>
<li>Implied DPS ~KRW 8300, ~3.6% SO retired; yields ~2.6% on commons and ~4.2% on prefs.</li>
<li>Buybacks may skew prefs, pricing that optionality; with labor risk gone, focus shifts to returns, 37% pref spread and ~4% yield could drive yield rotation and spread compression.</li>
</ul>


Despite KRW 37T headline cost, cash impact is mainly tax, so FCF drag is limited; street sees KRW 125T returns split into KRW 10T base dividend, 45T special, 70T buybacks.
Implied DPS ~KRW 8300, ~3.6% SO retired; yields ~2.6% on commons and ~4.2% on prefs.
Buybacks may skew prefs, pricing that optionality; with labor risk gone, focus shifts to returns, 37% pref spread and ~4% yield could drive yield rotation and spread compression.


Samsung FCF Estimate Factoring in Bonus Hit