Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, I provide an update on Daewon Sanup (005710 KS), which is a leading auto parts maker in Korea.  </li>
<li>Daewon Sanup has very high levels of net cash (148% net cash as % of market cap), steady growth in sales, stable profit margins, and attractive valuations.</li>
<li>VIP Asset Management has been putting increasing pressures on Daewon Industrial to improve its corporate governance in recent months.</li>
</ul>


In this insight, I provide an update on Daewon Sanup (005710 KS), which is a leading auto parts maker in Korea.  
Daewon Sanup has very high levels of net cash (148% net cash as % of market cap), steady growth in sales, stable profit margins, and attractive valuations.
VIP Asset Management has been putting increasing pressures on Daewon Industrial to improve its corporate governance in recent months.


An Update on Daewon Sanup (Corporate Activism by VIP Asset Mgmt)

<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>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). </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. 


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Despite <a href="https://www.smartkarma.com/entities/mitsubishi-pencil-co-ltd" target="_blank" data-smartkarma-citation="entities:3719:1" rel="noopener">Mitsubishi Pencil (7976 JP)</a>'s shoicking governance, unless you are willing to fight it in court (and probably lose), the right thing to do here is buy on weakness.</li>
<li>Assuming <a href="https://www.smartkarma.com/entities/china-resources-power-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:5385:1" rel="noopener">China Resources Power (836 HK)</a>'s A-share listing of its renewable energy unit unfolds,  there remains material upside here. </li>
<li>Perhaps <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison (1 HK)</a> now views the (required) high forward spending on VodafoneThree to secure this "golden ticket" no longer makes commercial sense</li>
</ul>


Despite Mitsubishi Pencil (7976 JP)'s shoicking governance, unless you are willing to fight it in court (and probably lose), the right thing to do here is buy on weakness.
Assuming China Resources Power (836 HK)'s A-share listing of its renewable energy unit unfolds,  there remains material upside here. 
Perhaps CK Hutchison (1 HK) now views the (required) high forward spending on VodafoneThree to secure this "golden ticket" no longer makes commercial sense


Last Week In Event SPACE: Mitsubishi Pencil, China Resources Power, CK Hutchison, Guoco

<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

South Korea

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.

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Daewon San Up (005710 KS)

An Update on Daewon Sanup (Corporate Activism by VIP Asset Mgmt)

VIP Asset Management has been putting increasing pressures on Daewon Industrial to improve its corporate governance in recent months.

Douglas Kim

Korea Small Cap Gem #48: Daewon Sanup

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.

Douglas Kim

Last Week In Event SPACE: Mitsubishi Pencil, China Resources Power, CK Hutchison, Guoco

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

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

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