Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Aurora World is best known for its plush toys (Palm Pals and YooHoo &amp; Friends). It is increasingly trying to leverage its toy character brands to expand into digital contents. </li>
<li>What makes Aurora World so interesting is its excellent fundamentals and deeply discounted valuations relative to The Pinkfong Company (IPO in 2H25) and SAMG Entertainment.</li>
<li>Aurora World generated more than 80% of its sales in overseas markets including the United States, U.K., and Hong Kong. </li>
</ul>


Aurora World is best known for its plush toys (Palm Pals and YooHoo &amp; Friends). It is increasingly trying to leverage its toy character brands to expand into digital contents. 
What makes Aurora World so interesting is its excellent fundamentals and deeply discounted valuations relative to The Pinkfong Company (IPO in 2H25) and SAMG Entertainment.
Aurora World generated more than 80% of its sales in overseas markets including the United States, U.K., and Hong Kong. 


<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

<ul>
<li>Aurora World reported excellent results in 2Q 2025. It had sales of 77.1 billion won (up 26.5% YoY) and operating profit of 8.8 billion won (up 86.7% YoY).</li>
<li>The company's excellent results in 2Q 2025 was driven by the continued strong demand for its character toys (Palm Pals, YooHoo &amp; Friends, and Rolly Pets) in key overseas markets.</li>
<li>If we attach a 10x P/E on estimated net profit of 30.1 billion won, it would suggest a market cap of 301 billion won (2026E) (37% upside from current levels). </li>
</ul>


Aurora World reported excellent results in 2Q 2025. It had sales of 77.1 billion won (up 26.5% YoY) and operating profit of 8.8 billion won (up 86.7% YoY).
The company's excellent results in 2Q 2025 was driven by the continued strong demand for its character toys (Palm Pals, YooHoo &amp; Friends, and Rolly Pets) in key overseas markets.
If we attach a 10x P/E on estimated net profit of 30.1 billion won, it would suggest a market cap of 301 billion won (2026E) (37% upside from current levels). 


Aurora World - Palm Pals and YooHoo or Chairman's Love of Golf?

Director, Head of Research, Smartkarma

Pranav Rao

Director, Head of Research

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
<li>Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,200+ insights published over the past two weeks on Smartkarma</li>
<li>In this cut, we look at an Asian toy manufacturer not named Pop Mart or Dream Int'l, the mashup between crypto and equity markets and the takeaways from tracking buybacks</li>
<li>Want to dig deeper? Comment or message on the themes you think should be highlighted next</li>
</ul>


Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,200+ insights published over the past two weeks on Smartkarma
In this cut, we look at an Asian toy manufacturer not named Pop Mart or Dream Int'l, the mashup between crypto and equity markets and the takeaways from tracking buybacks
Want to dig deeper? Comment or message on the themes you think should be highlighted next


Curator's Cut: The Next Labubu, Crypto Equities & Tracking APAC Buybacks

Cross Asset Strategy

<ul>
<li>In this insight, we review the relative performances of the 11 Korea Small Cap Gem series published so far in 2025 (as of 13 August).</li>
<li>We also argue how small caps could be one of the important indicators in the Korean stock market. </li>
<li><em><strong>These 11 stocks are up on average 32.9% (from date of the Korea Small Cap Gem series publication to 13 August 2025).These 11 stocks have significantly outperformed KOSPI and KOSDAQ. </strong></em></li>
</ul>


In this insight, we review the relative performances of the 11 Korea Small Cap Gem series published so far in 2025 (as of 13 August).
We also argue how small caps could be one of the important indicators in the Korean stock market. 
These 11 stocks are up on average 32.9% (from date of the Korea Small Cap Gem series publication to 13 August 2025).These 11 stocks have significantly outperformed KOSPI and KOSDAQ. 


A Review of Korea Small Cap Gem Series So Far in 2025 and Small Caps as Important Market Indicator

South Korea

Aurora World Corp. develops, licenses, and merchandises characters.  The Company's character brands include Classic Aurora, Beary Friends, Aurora Baby, and Wish Wing.  Aurora World provides its products mainly to overseas markets. The Company also operates real estate leasing business.

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Aurora World (039830 KS)

Korea Small Cap Gem #35: Aurora World

What makes Aurora World so interesting is its excellent fundamentals and deeply discounted valuations relative to The Pinkfong Company (IPO in...

Douglas Kim

A Review of Korean Small Cap Gems in 2025

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.

Douglas Kim

Aurora World - Palm Pals and YooHoo or Chairman's Love of Golf?

Aurora World's excellent results in 2Q 2025 was driven by the continued strong demand for its character toys (Palm Pals, YooHoo & Friends, and...

Douglas Kim

Curator's Cut: The Next Labubu, Crypto Equities & Tracking APAC Buybacks

In this cut, we look at an Asian plush toy manufacturer not named Pop Mart or Dream Int'l, the mashup between crypto and equity markets and the...

Pranav Rao

A Review of Korea Small Cap Gem Series So Far in 2025 and Small Caps as Important Market Indicator

The 11 stocks included in the Korea Small Cap Gem series published so far in 2025 are up on average 32.9% (from date of publication to 13 August...

Douglas Kim

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