Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

SeAH Besteel Holdings Corporation manufactures and distributes steel products. The Company produces special steel, heavy forgings, spring steel, bearing steel, auto parts, axles, and other related products. SeAH Besteel Holdings markets its products worldwide.

<ul>
<li>In 2026, one of the emerging investment themes will likely be the main value-chain suppliers to SpaceX which is gearing up for a huge IPO next year.</li>
<li>Seah Besteel Holdings is expected to be one of the specialty steel suppliers to SpaceX. Seah is investing about US$155 million to build a special alloy plant in the US.</li>
<li>In addition to SpaceX, Seah Besteel Holdings plans to gain additional major US customers including Boeing Co (BA US), Lockheed Martin (LMT US), GE Aerospace, and Pratt &amp; Whitney.</li>
</ul>


In 2026, one of the emerging investment themes will likely be the main value-chain suppliers to SpaceX which is gearing up for a huge IPO next year.
Seah Besteel Holdings is expected to be one of the specialty steel suppliers to SpaceX. Seah is investing about US$155 million to build a special alloy plant in the US.
In addition to SpaceX, Seah Besteel Holdings plans to gain additional major US customers including Boeing Co (BA US), Lockheed Martin (LMT US), GE Aerospace, and Pratt &amp; Whitney.


Korea Small Cap Gem #50: Seah Besteel Holdings - A Potential Beneficiary of SpaceX IPO

Chunil Express Co., Ltd. provides intercity bus transportation, serving the major cities in South Korea.  The Company also operates real estate leasing and oil distribution businesses.

<ul>
<li>Seoul Express Bus Terminal is finally being redeveloped. Official registered value of this property is 1 trillion won. Market value could be much higher at more than 1.5 trillion won.</li>
<li>Chunil Express owns 16.67% stake in Seoul Express Bus Terminal. We believe Chunil Express' share price could rise sharply (more than double from here) in the next few days/weeks.</li>
<li>Redevelopment of the Seoul Express Bus Terminal has been discussed repeatedly for more than two decades. It appears that the major redevelopment of this area will FINALLY be taking place. </li>
</ul>


Seoul Express Bus Terminal is finally being redeveloped. Official registered value of this property is 1 trillion won. Market value could be much higher at more than 1.5 trillion won.
Chunil Express owns 16.67% stake in Seoul Express Bus Terminal. We believe Chunil Express' share price could rise sharply (more than double from here) in the next few days/weeks.
Redevelopment of the Seoul Express Bus Terminal has been discussed repeatedly for more than two decades. It appears that the major redevelopment of this area will FINALLY be taking place. 


Daewon San Up Co., Ltd. designs, manufactures and markets automobile seats. The Company's products include seats for sports utility, recreational, and passenger vehicles, trucks, and buses.

<ul>
<li>Daewon Sanup's net cash as percentage of market cap is 171%. This is one of the highest net cash/market cap ratios in the Korean stock market.</li>
<li><em><strong>Daewon Sanup is one of the largest Korean automobile seat manufacturers. It is also one of the beneficiaries of the reduction in US auto tariffs to 15% (from 25% previously). </strong></em></li>
<li>The company is trading at dirt cheap valuations. It is trading at P/E of 2.3x and P/B of 0.4x based on LTM financials. </li>
</ul>


Daewon Sanup's net cash as percentage of market cap is 171%. This is one of the highest net cash/market cap ratios in the Korean stock market.
Daewon Sanup is one of the largest Korean automobile seat manufacturers. It is also one of the beneficiaries of the reduction in US auto tariffs to 15% (from 25% previously). 
The company is trading at dirt cheap valuations. It is trading at P/E of 2.3x and P/B of 0.4x based on LTM financials. 


Aniplus Inc operates pay television channels. The Company focuses on airing anime as its main programming genre. Aniplus serves customers globally.

<ul>
<li>Aniplus is increasingly becoming a leading player in the anime contents production and distribution in Korea. The company's anime contents have potential to expand globally. </li>
<li>Valuations are attractive. It is trading at P/E of 9x in 2025 and 7.9x in 2026 based on consensus earnings estimates. </li>
<li>If we use P/E of 15x on 2026E net profit of 26.9 billion won, this would suggest a market cap of 404 billion won (95% higher than current market cap). </li>
</ul>


Aniplus is increasingly becoming a leading player in the anime contents production and distribution in Korea. The company's anime contents have potential to expand globally. 
Valuations are attractive. It is trading at P/E of 9x in 2025 and 7.9x in 2026 based on consensus earnings estimates. 
If we use P/E of 15x on 2026E net profit of 26.9 billion won, this would suggest a market cap of 404 billion won (95% higher than current market cap). 


Flitto Inc. provides internet based services. The Company collects and sells language data to national research institutes. Flitto offers services throughout South Korea.

<ul>
<li>One of the key emerging catalysts for Flitto is the rapid adoption of the company's AI-based simultaneous interpretation solution called Live Translation by companies such as Apple.</li>
<li>Global big tech companies such as Apple, Meta, and Amazon Web Services (AWS) have used the service for their own events, which has accelerated its growth.</li>
<li>Flitto had its best ever quarterly results in 2Q25. It had sales of 9.4 billion won (up 156% YoY). Operating margin surged from -38.5% in 2Q24 to 25.9% in 2Q25. </li>
</ul>


One of the key emerging catalysts for Flitto is the rapid adoption of the company's AI-based simultaneous interpretation solution called Live Translation by companies such as Apple.
Global big tech companies such as Apple, Meta, and Amazon Web Services (AWS) have used the service for their own events, which has accelerated its growth.
Flitto had its best ever quarterly results in 2Q25. It had sales of 9.4 billion won (up 156% YoY). Operating margin surged from -38.5% in 2Q24 to 25.9% in 2Q25. 
