Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul><li>Our sum-of-the parts valuation scenarios analysis suggests a range of 24% to 70% upside for Fila Korea shares, depending upon different values scenarios for Acushnet IPO.</li><li>Acushnet generated EBITDA of $185 million in 2014. Our base case scenario assumes EBITDA of $200 million in 2016 for Acushnet. </li><li>Callaway Golf is the closest comp to Acushnet. Callaway Golf's shares have been trading at about 12x EV/EBITDA based on 2015 estimates. One could argue that Acushnet should be priced at least 12x EV/EBITDA multiple. Our base case scenario assumes 12x EV/EBITDA for Acushnet IPO, although we believe it could be priced higher in the 13-14x range.</li><li>Fila Korea currently owns a 55.8% stake of Acushnet. Post IPO, Fila Korea will own a 33% stake of Acushnet.</li><li>Acushnet has the best brands in the global golfing industry through its Titleist and Footjoy names.</li><li>Acushnet is getting ready for a IPO in 2016, most likely to be listed in the US.</li></ul>

Our sum-of-the parts valuation scenarios analysis suggests a range of 24% to 70% upside for Fila Korea shares, depending upon different values scenarios for Acushnet IPO.Acushnet generated EBITDA of $185 million in 2014. Our base case scenario assumes EBITDA of $200 million in 2016 for Acushnet. Callaway Golf is the closest comp to Acushnet. Callaway Golf's shares have been trading at about 12x EV/EBITDA based on 2015 estimates. One could argue that Acushnet should be priced at least 12x EV/EBITDA multiple. Our base case scenario assumes 12x EV/EBITDA for Acushnet IPO, although we believe it could be priced higher in the 13-14x range.Fila Korea currently owns a 55.8% stake of Acushnet. Post IPO, Fila Korea will own a 33% stake of Acushnet.Acushnet has the best brands in the global golfing industry through its Titleist and Footjoy names.Acushnet is getting ready for a IPO in 2016, most likely to be listed in the US.

Fila Korea - IPO of Acushnet Is the Tipping Point of Value Realization

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Thematic (Sector/Industry)

For now, CJ officially denied to sell CJ O Shopping (035760). Now, the question is why the talk of possible sale of CJ O Shopping came out in the first place. Despite CJ’s denial, it seems to be true that CJ management made some actions for possible sale of CJ O Shopping. Yes, whether CJ is really serious about selling CJ O Shopping remains uncertain at this moment. But what seems certain is that CJ management and Chairman Lee Jay-hyun appear to be quite determined to concentrate their resources…

For now, CJ officially denied to sell CJ O Shopping (035760). Now, the question is why the talk of possible sale of CJ O Shopping came out in the first place. Despite CJ’s denial, it seems to be true that CJ management made some actions for possible sale of CJ O Shopping. Yes, whether CJ is really serious about selling CJ O Shopping remains uncertain at this moment. But what seems certain is that CJ management and Chairman Lee Jay-hyun appear to be quite determined to concentrate their resources…

South Korea

Misto Holdings Corporation produces sports products. The Company manufactures golf equipment and other products. Misto Holdings conducts businesses in South Korea.

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Misto Holdings (081660 KS)

Fila Korea - IPO of Acushnet Is the Tipping Point of Value Realization

Our sum-of-the parts valuation scenarios analysis suggests a range of 24% to 70% upside for Fila Korea shares, depending upon different values...

Douglas Kim

CJ O Shopping (035760) For Sale? Why?

For now, CJ officially denied to sell CJ O Shopping (035760). Now, the question is why the talk of possible sale of CJ O Shopping came out in the...

Sanghyun Park

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