Value-Up Index First Regular Change... Hyundai Rotem 'Inclusion'·Isu Petasys 'Exclusion'

[Financial News] Korea Exchange announced that as a result of the first regular change of the Korea Value-Up Index component stocks, it has decided to newly include 27 stocks including Hyundai Rotem and exclude 32 stocks including Celltrion.
On the 27th, the exchange held an index operation committee the previous day to review the regular change of the Value-Up Index component stocks and made this decision. The Value-Up Index component stocks temporarily increased to 105 through a special change in December last year, but were readjusted to 100 in this regular change. The inclusion and exclusion measures will be reflected from the 13th.
The 27 stocks included in the Value-Up Index through the regular change are △PSK Holdings △Solus Advanced Materials △Hyundai Rotem △LS Electric △Hanwha Systems △Hyosung Heavy Industries △Korea Electric Power Technology △Lotte Rental △Jeil Electric △Kangwon Land △Hanssem △DoubleUGames △Hana Tour △Myungshin Industry △Samsung Securities △JB Financial Group △Krafton △Kumho Petrochemical △Poongsan △Miwon Commercial △Amorepacific △Cosmax △Binggrae △HD Hyundai △SK Gas △Hanmi Science △Wontech, etc.
On the other hand, the 32 stocks excluded from the index are △Isu Petasys △LX Semicon △Hanamaterials △Simmtech △Wonik QnC △Doosan Tesna △BH △Haesung DS △Pan Ocean △SFA △Yoon Sung FNC △Misto Holdings △SL △Hansae Co., Ltd. △Cuckoo Homesys △Golfzon △Hyundai Marine & Fire Insurance △Daou Data △NCSoft △SM △Korea Zinc △HS Hyosung Advanced Materials △Nano New Materials △TKG Huchems △Ottogi △Kolmar BNH △S-Oil △Celltrion △Seegene △Caregen △Medytox △DongKook Pharmaceutical, etc.
In this regular change, companies judged to have damaged shareholder value were excluded from the index. The index operation committee decided on exclusion after reviewing companies that violated financial authorities and exchange laws and regulations or received sanctions related to funding that may harm general shareholder value, corporate splits, M&A, etc.
As a result, Korea Zinc, which announced a paid-in capital increase amid a management dispute in October last year, and Isu Petasys, which was criticized for acquiring a company unrelated to its main business through a paid-in capital increase in November of the same year, were excluded from the Value-Up Index.
Also, with the boom in the defense and power infrastructure industries, the proportion of industrial goods in the Value-Up Index has increased significantly, reducing the number of stocks in the information technology and healthcare sectors as a substitution effect.
The exchange explained, "With the continued improvement in the price-to-book ratio (PBR) and return on equity (ROE) of companies such as Hyundai Rotem and Hanwha Systems, LS Electric, the proportion of industrial goods in the index has increased significantly," adding, "As a result, the number of stocks in the healthcare sector, etc., has decreased."
Due to this impact, Celltrion was excluded from the index despite announcing a value-up. Regarding this, the exchange explained, "Celltrion's equity capital increased significantly due to the merger with Celltrion Healthcare in 2023, but net income decreased due to increased SG&A expenses, resulting in poor ROE."
With this regular change, the proportion of companies that completed announcements in the Value-Up Index increased from the existing 25% to 61%. The exchange plans to compose all index component stocks centered on value-up announcement companies from the next year's regular change of the Value-Up Index.
The exchange stated, "We have started developing a linked index with derivative strategies added to the Value-Up Index, and we are preparing for the commercialization of exchange-traded products (ETP) in the second half of the year," adding, "We will continue to develop additional index products considering industry demand and market conditions."



nodelay@fnnews.com Park Ji-yeon Reporter