Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

Shin Young Wacoal Inc. manufactures lingerie and other women's undergarments. The Company mainly produces women's underwear, brassieres, girdles, pajama and pajama gowns, lingerie, bodysuits, stockings, and men's undergarments.

<ul>
<li>In this insight, we review our Korean Small Cap Gem insights that we published in 2025. We published 18 Korea Small Cap Gem Series insights in 2025.</li>
<li>The 18 Korean Small Caps have generally performed well this year. They were up on average 17% and 45%, respectively one week and two weeks after the insights were published.</li>
<li>Some of the best performing stocks so far this year include Chunil Express (000650 KS), Aurora World (039830 KS), Makus Inc (093520 KS), and Flitto Inc. (300080 KS). </li>
</ul>


In this insight, we review our Korean Small Cap Gem insights that we published in 2025. We published 18 Korea Small Cap Gem Series insights in 2025.
The 18 Korean Small Caps have generally performed well this year. They were up on average 17% and 45%, respectively one week and two weeks after the insights were published.
Some of the best performing stocks so far this year include Chunil Express (000650 KS), Aurora World (039830 KS), Makus Inc (093520 KS), and Flitto Inc. (300080 KS). 


A Review of Korean Small Cap Gems in 2025

SK Holdings Co., Ltd. is a holdings company that is engaged in various industries including energy, chemicals, information technology, semiconductors, marketing, and services businesses in South Korea and internationally.

<ul>
<li>Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. </li>
<li>SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.</li>
<li>Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.</li>
</ul>


Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. 
SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.
Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.


Event-Driven

Gabia Inc. provides Internet domain registration services.  The Company offers customer support and services such as Web hosting, domain registration and management, and Web agency.  Gabia also provides solution for Internet shopping mall and e-learning business.

<ul>
<li>In this insight, we review the major tender offers of Korean companies in 2025. Some of the major M&amp;A tender offers in 2025 include HMM, Kolon Mobility Group, and VIOL.</li>
<li>The tender offers have mostly been profitable for the investors in these targeted companies (especially those shareholders who owned these shares prior to the tender offer announcement).</li>
<li>What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week.</li>
</ul>


In this insight, we review the major tender offers of Korean companies in 2025. Some of the major M&amp;A tender offers in 2025 include HMM, Kolon Mobility Group, and VIOL.
The tender offers have mostly been profitable for the investors in these targeted companies (especially those shareholders who owned these shares prior to the tender offer announcement).
What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week.


A Review of Tender Offers in Korea in 2025

SMEC Co., Ltd. engages in the machinery and communication industry business. The Company's machinery business produces CNC lathe, machine center, robot, laser, and catalogue archives. In addition, communication industry business develops BcN solution, mobile solution, video solution, security solution, and catalogue archives.

<ul>
<li>On 24 November, the SNT Group formalized its hostile takeover of Smec. S&amp;T Holdings  disclosed that it acquired an additional 5.46% stake in SMEC, raising its stake to 13.65%.</li>
<li>S&amp;T Holdings and SNT Group Chairman Choi combined own a 20.2% stake in SMEC. In comparison, the SMEC CEO Choi Young-seop owns a 9.75% stake in SMEC.</li>
<li>In our view, this is likely to lead to a potential fight for the control of SMEC's management rights, pushing up the share price of SMEC even further.</li>
</ul>


On 24 November, the SNT Group formalized its hostile takeover of Smec. S&amp;T Holdings  disclosed that it acquired an additional 5.46% stake in SMEC, raising its stake to 13.65%.
S&amp;T Holdings and SNT Group Chairman Choi combined own a 20.2% stake in SMEC. In comparison, the SMEC CEO Choi Young-seop owns a 9.75% stake in SMEC.
In our view, this is likely to lead to a potential fight for the control of SMEC's management rights, pushing up the share price of SMEC even further.


SNT Group - Formalizes a Hostile Takeover of SMEC

Wacker Neuson SE designs, builds and markets light construction equipment and construction machines.  The Company's products are offered in the construction, gardening, landscaping and agricultural, as well as municipal bodies and companies in the industrial and recycling sectors.  Wacker also provides rental, spare parts, and repair services.

<ul>
<li>According to numerous local media, Doosan Bobcat is pursuing the acquisition of a controlling stake in Wacker Neuson Se (WAC GR), a German based compact construction equipment company. </li>
<li>Doosan Bobcat is apparently discussing a plan to acquire approximately 60% of Wacker Neuson. There are also discussions to secure the remaining shares of the company through a tender offer. </li>
<li>Wacker Neuson has a market cap of 1.46 billion EUR (2.5 trillion won) and the acquisition value for a 100% stake is expected to be more than 5 trillion won.</li>
</ul>


According to numerous local media, Doosan Bobcat is pursuing the acquisition of a controlling stake in Wacker Neuson Se (WAC GR), a German based compact construction equipment company. 
Doosan Bobcat is apparently discussing a plan to acquire approximately 60% of Wacker Neuson. There are also discussions to secure the remaining shares of the company through a tender offer. 
Wacker Neuson has a market cap of 1.46 billion EUR (2.5 trillion won) and the acquisition value for a 100% stake is expected to be more than 5 trillion won.


Doosan Bobcat: To Acquire the Controlling Stake & Conduct Tender Offer of Wacker Neuson?