Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul><li>We highlight 9 major new innovative products in the Korean F&amp;B sector introduced in the past six months that are having significant impact on the consumer buying patterns.  </li><li>Bottom line is that the companies that are introducing innovative food products that consumers like often end up with higher share prices. Average share prices of the eight companies with new, recent innovative food products (excluding <a href="https://www.smartkarma.com/entities/22709" target="_blank" data-smartkarma-citation="entities:22709">Haitai Confectionery &amp; Foods</a> , which has had a phenomenal post IPO performance) are up 2% YTD, outperforming KOSPI which is down 0.3% YTD. </li><li>Recent, new innovative products in the Korean F&amp;B sector include <a href="https://www.smartkarma.com/entities/7615" target="_blank" data-smartkarma-citation="entities:7615">Orion Corp</a> 's Choco Banana Pie, <a href="https://www.smartkarma.com/entities/22709" target="_blank" data-smartkarma-citation="entities:22709">Haitai Confectionery &amp; Foods</a> 's Takoyaki Balls, <a href="https://www.smartkarma.com/entities/1970" target="_blank" data-smartkarma-citation="entities:1970">Cj Cheiljedang Corp</a> 's Petitzel Eclair, and <a href="https://www.smartkarma.com/entities/16050" target="_blank" data-smartkarma-citation="entities:16050">Lotte Confectionery Co Ltd</a> 's Mongshell Choco Banana. </li></ul>

We highlight 9 major new innovative products in the Korean F&amp;B sector introduced in the past six months that are having significant impact on the consumer buying patterns.  Bottom line is that the companies that are introducing innovative food products that consumers like often end up with higher share prices. Average share prices of the eight companies with new, recent innovative food products (excluding Haitai Confectionery &amp; Foods , which has had a phenomenal post IPO performance) are up 2% YTD, outperforming KOSPI which is down 0.3% YTD. Recent, new innovative products in the Korean F&amp;B sector include Orion Corp 's Choco Banana Pie, Haitai Confectionery &amp; Foods 's Takoyaki Balls, Cj Cheiljedang Corp 's Petitzel Eclair, and Lotte Confectionery Co Ltd 's Mongshell Choco Banana. 

Innovative Foods = Portfolio Outperformance

Equity Bottom-Up

<ul><li>The Chinese government allowed exports of Samgyetang (Ginseng Chicken Soup) from Korea to China starting 1H 2016. Samgyetang is a delicious soup, combining chicken, gingseng, garlic, rice, jujube, and other spices. Similar to kimchi which was blocked from being exported to China for many years, samgyetang was not allowed to be exported to China.</li><li>As a part of the FTA agreement between China and Korea, this restriction was removed, resulting in massive new market for the companies in Korea that produce chicken and samgyetang products. Three major chicken producers in Korea include Harim (136480 KS), Dongwoo (088910 KS), and Maniker (027740 KS). We highlight Dongwoo in this report.</li></ul>

The Chinese government allowed exports of Samgyetang (Ginseng Chicken Soup) from Korea to China starting 1H 2016. Samgyetang is a delicious soup, combining chicken, gingseng, garlic, rice, jujube, and other spices. Similar to kimchi which was blocked from being exported to China for many years, samgyetang was not allowed to be exported to China.As a part of the FTA agreement between China and Korea, this restriction was removed, resulting in massive new market for the companies in Korea that produce chicken and samgyetang products. Three major chicken producers in Korea include Harim (136480 KS), Dongwoo (088910 KS), and Maniker (027740 KS). We highlight Dongwoo in this report. 

Samgyetang (Ginseng Chicken Soup) Exports to China Begin

South Korea

Dongwoo Co., Ltd. processes poultry.  The Company manufactures packaged chicken, and also provides livestock feed.

Dongwoo Co Ltd (088910 KS)

Innovative Foods = Portfolio Outperformance

We highlight 9 major new innovative products in the Korean F&B sector introduced in the past six months that are having significant impact on...

Douglas Kim

Samgyetang (Ginseng Chicken Soup) Exports to China Begin

The Chinese government allowed exports of Samgyetang (Ginseng Chicken Soup) from Korea to China starting 1H 2016. Samgyetang is a delicious soup,...

Douglas Kim