Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, we discuss a pair trade between Coupang (CPNG US) (short) and CJ Logistics (000120 KS) (long).</li>
<li>There are six major factors that have negatively impacted Coupang in the past several weeks including a massive data breach, loss of customers, and potential ban on early dawn deliveries. </li>
<li>Coupang's daily active users (DAU) were 16.2 million as of 5 December, down by 1.8 million (10%)  from 18 million as of 1 December. </li>
</ul>


In this insight, we discuss a pair trade between Coupang (CPNG US) (short) and CJ Logistics (000120 KS) (long).
There are six major factors that have negatively impacted Coupang in the past several weeks including a massive data breach, loss of customers, and potential ban on early dawn deliveries. 
Coupang's daily active users (DAU) were 16.2 million as of 5 December, down by 1.8 million (10%)  from 18 million as of 1 December. 


A Pair Trade Between Coupang (Short) And CJ Logistics (Long)

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul>
<li>Coupang's recent financial results for the third quarter of 2025 reveal a mix of strong growth and strategic investment, showcasing its efforts to strengthen its foothold in both existing and new markets.</li>
<li>The company reported an 18% year-over-year growth in consolidated revenues, reaching $9.3 billion for the quarter, with revenue growth expanding to 20% when adjusted for constant currency.</li>
<li>This growth was further complemented by an improvement in gross profit margins, which expanded by over 50 basis points to 29.4%, and adjusted EBITDA margins, which rose by 10 basis points to 4.5%.</li>
</ul>


Coupang's recent financial results for the third quarter of 2025 reveal a mix of strong growth and strategic investment, showcasing its efforts to strengthen its foothold in both existing and new markets.
The company reported an 18% year-over-year growth in consolidated revenues, reaching $9.3 billion for the quarter, with revenue growth expanding to 20% when adjusted for constant currency.
This growth was further complemented by an improvement in gross profit margins, which expanded by over 50 basis points to 29.4%, and adjusted EBITDA margins, which rose by 10 basis points to 4.5%.


Coupang Power Play: What Taiwan, Eats, & New Services Reveal About Its Global Ambitions!

<ul>
<li><em><strong>Coupang faces a fast-emerging risk: a potential ban on early dawn deliveries (midnight–5 AM), driven by the powerful 1.1 million-member Korean Confederation of Trade Unions (KCTU). </strong></em></li>
<li>The Coupang Union and most drivers strongly oppose the ban, warning of layoffs and slower deliveries. Consumers also prefer the current system. </li>
<li>If enacted, the ban could severely hurt Coupang and Korea’s economy. Probability of passage has risen sharply. I would be cautious on Coupang until this risk factor is fully resolved. </li>
</ul>


Coupang faces a fast-emerging risk: a potential ban on early dawn deliveries (midnight–5 AM), driven by the powerful 1.1 million-member Korean Confederation of Trade Unions (KCTU). 
The Coupang Union and most drivers strongly oppose the ban, warning of layoffs and slower deliveries. Consumers also prefer the current system. 
If enacted, the ban could severely hurt Coupang and Korea’s economy. Probability of passage has risen sharply. I would be cautious on Coupang until this risk factor is fully resolved. 


Coupang: Facing Increasing Risk of a Potential Ban on Early Dawn Deliveries - Number One Risk Factor

Event-Driven

<ul>
<li>It was reported today that SoftBank sold 2.3 trillion won ($1.7 billion) worth of Coupang (CPNG US) shares this year.</li>
<li>The total number of Coupang shares sold in three rounds this year by SoftBank is 60 million, worth $1.66 billion (2.3 trillion won).</li>
<li>We believe that this partial stake sale of SoftBank by Coupang is likely to have a moderately negative impact on Coupang.</li>
</ul>


It was reported today that SoftBank sold 2.3 trillion won ($1.7 billion) worth of Coupang (CPNG US) shares this year.
The total number of Coupang shares sold in three rounds this year by SoftBank is 60 million, worth $1.66 billion (2.3 trillion won).
We believe that this partial stake sale of SoftBank by Coupang is likely to have a moderately negative impact on Coupang.


SoftBank Sold 2.3 Trillion Won Worth of Coupang In 2025

<ul>
<li>Coupang's second-quarter 2025 earnings highlighted several key aspects of the company's performance, illustrating both positive developments and ongoing challenges.</li>
<li>On the positive side, Coupang reported a strong revenue growth of 16% year-over-year, or 19% in constant currency, reaching $8.5 billion.</li>
<li>This revenue increase was largely driven by the Product Commerce segment, which experienced a gross profit margin expansion of 230 basis points to 32.6%, alongside an 80 basis point increase in adjusted EBITDA margins to over 9%.</li>
</ul>


Coupang's second-quarter 2025 earnings highlighted several key aspects of the company's performance, illustrating both positive developments and ongoing challenges.
On the positive side, Coupang reported a strong revenue growth of 16% year-over-year, or 19% in constant currency, reaching $8.5 billion.
This revenue increase was largely driven by the Product Commerce segment, which experienced a gross profit margin expansion of 230 basis points to 32.6%, alongside an 80 basis point increase in adjusted EBITDA margins to over 9%.


CPNG Is Focusing On AI, Automation, & The Robotics Revolution; Will It Pay Off?

South Korea

Coupang, Inc. operates as an e-commerce company. The Company offers dynamic end-to-end e-commerce and logistic solutions. Coupang serves customers worldwide.

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Coupang (CPNG US)

A Pair Trade Between Coupang (Short) And CJ Logistics (Long)

We discuss a pair trade between Coupang (short) and CJ Logistics (long). Coupang's daily active users were 16.2 million as of 5 December, down by...

Douglas Kim

Coupang Power Play: What Taiwan, Eats, & New Services Reveal About Its Global Ambitions!

Coupang's recent financial results for the third quarter of 2025 reveal a mix of strong growth and strategic investment, showcasing its efforts to...

Baptista Research

Coupang: Facing Increasing Risk of a Potential Ban on Early Dawn Deliveries - Number One Risk Factor

Coupang faces a fast-emerging risk: a potential ban on early dawn deliveries (midnight–5 AM), driven by the powerful 1.1 million-member Korean...

Douglas Kim

SoftBank Sold 2.3 Trillion Won Worth of Coupang In 2025

SoftBank sold 2 .3 trillion won ($1.7 billion) worth of Coupang (CPNG US) shares this year. This partial stake sale of SoftBank by Coupang is...

Douglas Kim

CPNG Is Focusing On AI, Automation, & The Robotics Revolution; Will It Pay Off?

Coupang's second-quarter 2025 earnings highlighted several key aspects of the company's performance, illustrating both positive developments and...

Baptista Research

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