Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

We highlight 28 Korean companies that are seeking to find new owners through M&amp;A in 2017. Key sectors of M&amp;A in Korea in 2017 include energy, financials, and materials. Our analysis is based on the publicly available information. Active M&amp;As in the Korean insurance sector - In 2016, some of the major completed M&amp;As include the sale of Allianz Life Insurance Korea and PCA Life Insurance. China's Anbang Life Insurance has been aggressively acquiring insurance companies in Korea in recent years, including Allianz Life Insurance Korea and Tong Yang Life Insurance. KDB Life Insurance and ING Life Insurance Korea are still up for sale in 2017.  <div class="content-highlight">Among the various M&amp;A sectors in Korea in 2017, we find materials and energy sectors to be quite interesting.</div>

We highlight 28 Korean companies that are seeking to find new owners through M&amp;A in 2017. Key sectors of M&amp;A in Korea in 2017 include energy, financials, and materials. Our analysis is based on the publicly available information. Active M&amp;As in the Korean insurance sector - In 2016, some of the major completed M&amp;As include the sale of Allianz Life Insurance Korea and PCA Life Insurance. China's Anbang Life Insurance has been aggressively acquiring insurance companies in Korea in recent years, including Allianz Life Insurance Korea and Tong Yang Life Insurance. KDB Life Insurance and ING Life Insurance Korea are still up for sale in 2017.  Among the various M&amp;A sectors in Korea in 2017, we find materials and energy sectors to be quite interesting.

2017 Korea M&A Market Outlook - What's For Sale?

Douglas Research Advisory

Equity Bottom-Up

Daewoo Engineering & Construction / Equity Bottom-Up

Daewoo Engineering & Construction (047040 KS)

<ul>
<li>Daewoo E&amp;C's share price has surged driven by the hope of higher new orders from reconstruction projects in Iran/Middle East and higher nuclear power plant construction. </li>
<li>I believe that its share price has reached excessive levels. There is a higher probability the reconstruction projects in Iran/Middle East and nuclear power plant construction projects could be disappointing.</li>
<li>Daewoo E&amp;C's P/E and P/B multiples averaged 4.3x and 0.5x, respectively last five years. Its current P/E and P/B multiples are 845% and 580% higher than its historical valuation multiples. </li>
</ul>


Daewoo E&amp;C's share price has surged driven by the hope of higher new orders from reconstruction projects in Iran/Middle East and higher nuclear power plant construction. 
I believe that its share price has reached excessive levels. There is a higher probability the reconstruction projects in Iran/Middle East and nuclear power plant construction projects could be disappointing.
Daewoo E&amp;C's P/E and P/B multiples averaged 4.3x and 0.5x, respectively last five years. Its current P/E and P/B multiples are 845% and 580% higher than its historical valuation multiples. 


Daewoo E&C: Excessive Hope from Reconstruction in Iran and Nuclear Power Plant Construction Projects

We attended the 2016 IoT Exhibition &amp; International Conference (Seoul) yesterday, which is the largest one for the IoT sector in Korea. We wanted to kick some tires and see in person some of the interesting developments in the IoT sector. Internet of Things will likely be one of the key investment themes over the next decade. Korea is well positioned to capitalize on this trend, driven by its high penetration of smartphones and broadband as well as its leadership on high-tech products and…

We attended the 2016 IoT Exhibition &amp; International Conference (Seoul) yesterday, which is the largest one for the IoT sector in Korea. We wanted to kick some tires and see in person some of the interesting developments in the IoT sector. Internet of Things will likely be one of the key investment themes over the next decade. Korea is well positioned to capitalize on this trend, driven by its high penetration of smartphones and broadband as well as its leadership on high-tech products and…

Internet of Things Will Change the World (Part 7) - 2016 IoT Exhibition & Conference in Seoul

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

<blockquote>
“Using leverage to cure the problems of too much leverage is not homeopathy, it is denial. The debt crisis is not a temporary problem, it is a structural one. We need rehab.”
―Nassim Nicholas Taleb, Ten principles for a Black Swan-proof world (2009)
</blockquote>This morning, Hanjin Shipping Co. said it will apply for court receivership after lenders decided to halt all support. We have been highlighting these risks from 2013 and in our last update on troubled container shipping company, we had highlighted the…


“Using leverage to cure the problems of too much leverage is not homeopathy, it is denial. The debt crisis is not a temporary problem, it is a structural one. We need rehab.”
―Nassim Nicholas Taleb, Ten principles for a Black Swan-proof world (2009)
This morning, Hanjin Shipping Co. said it will apply for court receivership after lenders decided to halt all support. We have been highlighting these risks from 2013 and in our last update on troubled container shipping company, we had highlighted the…

Hanjin Shipping(117930 KS) - Borrowed Time Comes to an End

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Apr 10th. The aggregated holding was USD1,239.1bn.</li>
<li>We estimate that foreign flows to be inflows of USD4,094mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Samsung Electronics, SK Hynix, KorZinc, SamsungElecMech, Doosan Enerbility.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Apr 10th. The aggregated holding was USD1,239.1bn.
We estimate that foreign flows to be inflows of USD4,094mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Samsung Electronics, SK Hynix, KorZinc, SamsungElecMech, Doosan Enerbility.


KRX Foreign Holding Weekly (Apr 10th): Samsung Electronics, SK Hynix, KorZinc, SamsungElecMech

South Korea

Doosan Enerbility Co., Ltd. manufactures and distributes construction machines. The Company produces gas turbines, engines, turbine generators, boilers, power plant equipment, and other related products. Doosan Enerbility also offers energy solutions for thermal power, nuclear power, and renewable energy.

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Doosan Enerbility (034020 KS)

2017 Korea M&A Market Outlook - What's For Sale?

We highlight 28 Korean companies that are seeking to find new owners through M&A in 2017. Key sectors of M&A in Korea in 2017 include...

Douglas Kim

Daewoo E&C: Excessive Hope from Reconstruction in Iran and Nuclear Power Plant Construction Projects

Daewoo E&C's share price which has surged driven by the hope of higher new orders from reconstruction projects in Iran/Middle East and higher...

Douglas Kim

Internet of Things Will Change the World (Part 7) - 2016 IoT Exhibition & Conference in Seoul

We attended the 2016 IoT Exhibition & International Conference (Seoul) yesterday, which is the largest one for the IoT sector in Korea. We...

Douglas Kim

Hanjin Shipping(117930 KS) - Borrowed Time Comes to an End

“Using leverage to cure the problems of too much leverage is not homeopathy, it is denial. The debt crisis is not a temporary problem, it is a...

Drewry Maritime Financial Research

KRX Foreign Holding Weekly (Apr 10th): Samsung Electronics, SK Hynix, KorZinc, SamsungElecMech

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Samsung Electronics, SK Hynix, KorZinc,...

Ke Yan, CFA, FRM

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