Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>On 4 April, Douzone Bizon (012510 KS) announced that it plans to become the fourth Internet bank in Korea. Following this news, Douzone Bizon's share price increased by 21%. </li>
<li>If the company succeeds in receiving the license to operate an Internet bank, this could meaningfully impact the company's long-term sales and profits. </li>
<li>If Douzone Bizone expands into the Internet banking services, it may need additional backing from strategic/financial partners including Bain Capital which has a 10.2% stake in Douzone Bizon. </li>
</ul>


On 4 April, Douzone Bizon (012510 KS) announced that it plans to become the fourth Internet bank in Korea. Following this news, Douzone Bizon's share price increased by 21%. 
If the company succeeds in receiving the license to operate an Internet bank, this could meaningfully impact the company's long-term sales and profits. 
If Douzone Bizone expands into the Internet banking services, it may need additional backing from strategic/financial partners including Bain Capital which has a 10.2% stake in Douzone Bizon. 


Douzone Bizon: To Become the Fourth Internet Bank in Korea?

<ul>
<li>Douzone Bizon's results turned around strongly in 2023. It had sales of 353.6 billion won (up 16.2% YoY) and operating profit of 68.4 billion won (up 50.4% YoY) in 2023.</li>
<li>The company plans to release software platforms with artificial intelligence capable functions in 1Q 2024. </li>
<li>The sharp increase in the share price and market cap of Douzone Bizon raises the probability of the company being included in the KOSPI 200 rebalance in 2024.</li>
</ul>


Douzone Bizon's results turned around strongly in 2023. It had sales of 353.6 billion won (up 16.2% YoY) and operating profit of 68.4 billion won (up 50.4% YoY) in 2023.
The company plans to release software platforms with artificial intelligence capable functions in 1Q 2024. 
The sharp increase in the share price and market cap of Douzone Bizon raises the probability of the company being included in the KOSPI 200 rebalance in 2024.


Douzone Bizon: A Strong Turnaround Story in the Korean Software Industry

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>The review period for the March rebalance ended yesterday, the changes will be announced early March and implemented at the close of trading on 14 March.</li>
<li>We forecast one change for each of the Secondary Battery, Bio, Internet and Game indices. There could be two changes for the BBIG Index.</li>
<li>
<a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a> is up 65.5% in the last month and we'd look to lighten positions on this move higher.</li>
</ul>


The review period for the March rebalance ended yesterday, the changes will be announced early March and implemented at the close of trading on 14 March.
We forecast one change for each of the Secondary Battery, Bio, Internet and Game indices. There could be two changes for the BBIG Index.

Douzone Bizon (012510 KS) is up 65.5% in the last month and we'd look to lighten positions on this move higher.


KRX New Deal Index Rebalance Preview: Douzone Bizon Does It Again

<ul>
<li>The review period for the March rebalance ends on 31 January, the changes will be announced early March and implemented at the close of trading on 14 March.</li>
<li>There is one change currently for each of the Secondary Battery, Bio, Internet and Game indices. There are two changes for the BBIG Index.</li>
<li>There will be big flow on <a href="https://www.smartkarma.com/entities/ecopro-bm-co-ltd" target="_blank" data-smartkarma-citation="entities:27873:1" rel="noopener">Ecopro BM (247540 KS)</a> and <a href="https://www.smartkarma.com/entities/posco-future-m-co-ltd" target="_blank" data-smartkarma-citation="entities:12421:1" rel="noopener">Posco Future M (003670 KS)</a> and big impact on <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a> and <a href="https://www.smartkarma.com/entities/dearu-co-ltd" target="_blank" data-smartkarma-citation="entities:34381:1" rel="noopener">DearU (376300 KS)</a>. </li>
</ul>


The review period for the March rebalance ends on 31 January, the changes will be announced early March and implemented at the close of trading on 14 March.
There is one change currently for each of the Secondary Battery, Bio, Internet and Game indices. There are two changes for the BBIG Index.
There will be big flow on Ecopro BM (247540 KS) and Posco Future M (003670 KS) and big impact on Douzone Bizon (012510 KS) and DearU (376300 KS). 


KRX New Deal Index Rebalance Preview: Changes with Flow & Impact

<ul>
<li>On 16 October, Douzone Bizon (012510 KS) announced that it is entering the global software-as-a service (SaaS) market in cooperation with Amazon Web Services (AWS). </li>
<li>The agreement stipulates that Douzone Bizon will develop global SaaS through AWS support and enter overseas markets. </li>
<li>We believe shares of Douzone Bizon have been oversold. Valuations have become more attractive and its cooperation with AWS is also likely to improve the company's overseas sales and profits. </li>
</ul>


On 16 October, Douzone Bizon (012510 KS) announced that it is entering the global software-as-a service (SaaS) market in cooperation with Amazon Web Services (AWS). 
The agreement stipulates that Douzone Bizon will develop global SaaS through AWS support and enter overseas markets. 
We believe shares of Douzone Bizon have been oversold. Valuations have become more attractive and its cooperation with AWS is also likely to improve the company's overseas sales and profits. 


Douzone Bizon: Cooperating with Amazon Web Services to Enter the Global SaaS Market

South Korea

Douzone Bizon Co., Ltd. develops and markets computer software.  The company develops MIS, ERP, e-Business Solutions, EFIS, SEM(Strategic Enterprise Management), BPS(Business Process Management), and ERM(Enterprise Risk Management). The Company's products target small and medium-sized enterprises.

Douzone Bizon (012510 KS)

Douzone Bizon: To Become the Fourth Internet Bank in Korea?

Douzone Bizon announced that it plans to become the fourth Internet bank in Korea. It plans to establish Korea's first Internet only bank...

Douglas Kim

Douzone Bizon: A Strong Turnaround Story in the Korean Software Industry

Douzone Bizon's results turned around strongly in 2023. The company plans to release software platforms with artificial intelligence capable...

Douglas Kim

KRX New Deal Index Rebalance Preview: Douzone Bizon Does It Again

There should be 1 change for each of the Battery, Bio, Internet and Game indices plus 2 changes for the BBIG Index. Douzone Bizon is repeating what...

Brian Freitas

KRX New Deal Index Rebalance Preview: Changes with Flow & Impact

With just over a week to go in the review period, the potential changes to the index are moving. Douzone Bizon is up 39% in two weeks and appears...

Brian Freitas

Douzone Bizon: Cooperating with Amazon Web Services to Enter the Global SaaS Market

We believe shares of Douzone Bizon have been oversold. Valuations have become more attractive and its cooperation with AWS is also likely to...

Douglas Kim