A Pair Trade Between Hyundai Elevator and Hyundai Movex Amid a 7% Stake Sale in Hyundai Movex

[Hyundai Elevator - Bullish; Hyundai Movex - Bearish]

• On 24 September, Hyundai Elevator Co (017800 KS) announced that it plans to sell 7.8 million shares of Hyundai Movex (319400 KS), representing 7% of its outstanding shares.

• Over the next several weeks, we expect continued outperformance of Hyundai Elevator vs Hyundai Movex.

• We like the pair trade of going long Hyundai Elevator and going short Hyundai Movex over the next 1-3 months, especially due to concerns about a 7% sale in Movex.