Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, we discuss the increasing importance of Palantir Technologies (PLTR US) on influencing the political rallies in Korea. </li>
<li>In addition, we discuss how HD Hyundai's 34% ownership of Palantir Korea is likely to improve the positive sentiment on HD Hyundai. </li>
<li>Our sum-of-the-parts valuation analysis of HD Hyundai suggests implied market cap of 11 trillion won or target price of 139,845 won per share (63% upside from current levels).</li>
</ul>


In this insight, we discuss the increasing importance of Palantir Technologies (PLTR US) on influencing the political rallies in Korea. 
In addition, we discuss how HD Hyundai's 34% ownership of Palantir Korea is likely to improve the positive sentiment on HD Hyundai. 
Our sum-of-the-parts valuation analysis of HD Hyundai suggests implied market cap of 11 trillion won or target price of 139,845 won per share (63% upside from current levels).


Palantir's Influence on the Political Rallies in Korea & HD Hyundai's 34% Stake in Palantir Korea

<ul>
<li>S&amp;P500 is up 27.7% YTD, outperforming KOSPI which is down 6.9% YTD. Global fund flow continues to pour into top quality US stocks such as Palantir, Tesla, and NVIDIA.</li>
<li>The top 20 best performing stocks in KOSPI 200 are up on average 106.8% YTD. However, the remaining 180 stocks in KOSPI 200 are down on average 9.2% YTD. </li>
<li>There is no large Palantir-like company that deals with AI/data analytics in Korea. However, large cap IT services and telcos in Korea are increasingly expanding their AI/data analytics related business.</li>
</ul>


S&amp;P500 is up 27.7% YTD, outperforming KOSPI which is down 6.9% YTD. Global fund flow continues to pour into top quality US stocks such as Palantir, Tesla, and NVIDIA.
The top 20 best performing stocks in KOSPI 200 are up on average 106.8% YTD. However, the remaining 180 stocks in KOSPI 200 are down on average 9.2% YTD. 
There is no large Palantir-like company that deals with AI/data analytics in Korea. However, large cap IT services and telcos in Korea are increasingly expanding their AI/data analytics related business.


A Comparison of KOSPI 200 and S&P 500 Companies Performances in 2024

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

HD Hyundai Marine Solution  / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hd-hyundai-marine-solution-co" target="_blank" data-smartkarma-citation="entities:41002:1" rel="noopener">HD Hyundai Marine Solution (443060 KS)</a> was listed in Korea on 9th May 2024 after raising US$540m. Its six-month lockup will expire on 7th Nov 2024.</li>
<li>HD Hyundai Marine Solution is a ship aftermarket service provider that provides necessary services throughout a ship's life cycle after the delivery of a new ship.</li>
<li>In this note, we will talk about the lock-up dynamics and updates since our last note.</li>
</ul>



HD Hyundai Marine Solution (443060 KS) was listed in Korea on 9th May 2024 after raising US$540m. Its six-month lockup will expire on 7th Nov 2024.
HD Hyundai Marine Solution is a ship aftermarket service provider that provides necessary services throughout a ship's life cycle after the delivery of a new ship.
In this note, we will talk about the lock-up dynamics and updates since our last note.


HD Hyundai Marine US$1.18bn Lockup Expiry - KKR Might Be Tempted to Book Gains

<ul>
<li>According to our NAV analysis, it suggests a base case valuation of 122,473 won per share for HD Hyundai, representing a 50% upside from current levels.</li>
<li>The combined value of HD Korea Shipbuilding &amp; Offshore Engineering, HD Hyundai Electric &amp; Energy, and HD Hyundai Marine Solution is 11.4 trillion won.</li>
<li>We estimate HD Hyundai's 73.85% stake in Hyundai Oilbank to be 7.0 trillion won. We also applied a 5x OP of its core business and a 50% holdco discount.</li>
</ul>


According to our NAV analysis, it suggests a base case valuation of 122,473 won per share for HD Hyundai, representing a 50% upside from current levels.
The combined value of HD Korea Shipbuilding &amp; Offshore Engineering, HD Hyundai Electric &amp; Energy, and HD Hyundai Marine Solution is 11.4 trillion won.
We estimate HD Hyundai's 73.85% stake in Hyundai Oilbank to be 7.0 trillion won. We also applied a 5x OP of its core business and a 50% holdco discount.


Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Capital Markets

<ul>
<li>Container ships are standardized, and fleets can be "market to market" values</li>
<li>This approach suggests TS Lines' equity could be worth &gt; US$2.0 bn</li>
<li>However, there are some caveats that come with this valuation approach</li>
</ul>


Container ships are standardized, and fleets can be "market to market" values
This approach suggests TS Lines' equity could be worth &gt; US$2.0 bn
However, there are some caveats that come with this valuation approach


TS Lines Pre-IPO: Adjusted Book Value Approach Yields Estimated Equity Valuation of US$1.96-2.06 Bn

South Korea

HD Korea Shipbuilding & Offshore Engineering Co., Ltd. operates as a shipbuilding and offshore company. The Company provides industrial plant engineering, special and naval shipbuilding, marine engine and machinery, industrial machinery and energy services. HD Korea Shipbuilding & Offshore Engineering markets its products worldwide.

HD Korea Shipbuilding & Offshore Engineering (009540 KS)

HD Korea Shipbuilding & Offshore Engineering

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HD Korea Shipbuilding & Offshore Engineering (009540 KS)

Palantir's Influence on the Political Rallies in Korea & HD Hyundai's 34% Stake in Palantir Korea

We discuss the increasing importance of Palantir on influencing the political rallies in Korea. HD Hyundai's 34% ownership of Palantir Korea is...

Douglas Kim

A Comparison of KOSPI 200 and S&P 500 Companies Performances in 2024

There is no large Palantir-like company that deals with AI/data analytics in Korea. However, large cap IT services and telcos in Korea are...

Douglas Kim

HD Hyundai Marine US$1.18bn Lockup Expiry - KKR Might Be Tempted to Book Gains

KKR is selling around 4% of HD Hyundai Marine's stock to raise US$160m. The selldown comes right after the PE comes out of its six-month IPO...

Clarence Chu

HD Hyundai: Updated NAV Analysis

According to our NAV analysis, it suggests a base case valuation of 122,473 won per share for HD Hyundai, representing a 50% upside from current...

Douglas Kim

TS Lines Pre-IPO: Adjusted Book Value Approach Yields Estimated Equity Valuation of US$1.96-2.06 Bn

Adjusting the book value of TS Lines' fleet based on recent newbuilding prices implies an equity valuation for the regional container carrier of as...

Tracking Traffic

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