Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

JNTC is one of the global leaders in making 3D cover (tempered) glass and connector parts for smartphones. The IPO base deal size is from US$80 million to US$98 million. The book-building for the institutional investors starts on 19 February. <div class="content-highlight">Overall, we believe that the combination of higher operating margin, ROE, and sales growth than its peers warrants JNTC higher valuation multiples than its peers. Thus, we applied a 20% premium multiple to the comps (19.4x). Using our estimated 2019 net profit of 37.2 billion won and applying a 19.4x P/E multiple results in an implied market cap of 720.8 billion won or implied price of 12,471 won per share, which is a 19% premium to the high end of the IPO price range of 10,500 won. This is a reasonably attractive upside so we have a POSITIVE view on JNTC.</div>

JNTC is one of the global leaders in making 3D cover (tempered) glass and connector parts for smartphones. The IPO base deal size is from US$80 million to US$98 million. The book-building for the institutional investors starts on 19 February. Overall, we believe that the combination of higher operating margin, ROE, and sales growth than its peers warrants JNTC higher valuation multiples than its peers. Thus, we applied a 20% premium multiple to the comps (19.4x). Using our estimated 2019 net profit of 37.2 billion won and applying a 19.4x P/E multiple results in an implied market cap of 720.8 billion won or implied price of 12,471 won per share, which is a 19% premium to the high end of the IPO price range of 10,500 won. This is a reasonably attractive upside so we have a POSITIVE view on JNTC.

<a href="https://www.smartkarma.com/entities/jntc-co-ltd" target="_blank" data-smartkarma-citation="entities:28825:1" rel="noopener">JNTC Co Ltd (204270 KS)</a> is expected to complete its IPO in Korea in the next few weeks. The IPO price range is from 8,500 won to 10,500 won. The IPO base deal size is from US$80 million to US$98 million. According to the bankers' valuation, the expected market cap after the IPO ranges from 492 billion won to 607 billion won. JNTC would be the biggest IPO so far in Korea in 2020. Established in 1996, JNTC is one of the global leaders in making 3D cover (tempered) glass and connector parts for smartphones.The bankers used nine companies including <a href="https://www.smartkarma.com/entities/avatec-co-ltd" target="_blank" data-smartkarma-citation="entities:8505:1" rel="noopener">Avatec Co Ltd (149950 KS)</a>, <a href="https://www.smartkarma.com/entities/power-logics-co-ltd" target="_blank" data-smartkarma-citation="entities:18598:1" rel="noopener">Power Logics (047310 KS)</a>, and <a href="https://www.smartkarma.com/entities/partron-co-ltd" target="_blank" data-smartkarma-citation="entities:11597:1" rel="noopener">Partron Co Ltd (091700 KS)</a> as comparable companies to JNTC. Using their annualized net profit in 1Q-3Q19, they derived the average P/E multiple of 14.5x.JNTC's annualized net profit is 49.4 billion won and applying P/E of 14.5x, this results in an implied market cap of 714 billion won. The bankers then applied an IPO discount range of 14.9% to 31.1%, resulting in an IPO price range of 8,500 won to 10,500 won.

JNTC Co Ltd (204270 KS) is expected to complete its IPO in Korea in the next few weeks. The IPO price range is from 8,500 won to 10,500 won. The IPO base deal size is from US$80 million to US$98 million. According to the bankers' valuation, the expected market cap after the IPO ranges from 492 billion won to 607 billion won. JNTC would be the biggest IPO so far in Korea in 2020. Established in 1996, JNTC is one of the global leaders in making 3D cover (tempered) glass and connector parts for smartphones.The bankers used nine companies including Avatec Co Ltd (149950 KS), Power Logics (047310 KS), and Partron Co Ltd (091700 KS) as comparable companies to JNTC. Using their annualized net profit in 1Q-3Q19, they derived the average P/E multiple of 14.5x.JNTC's annualized net profit is 49.4 billion won and applying P/E of 14.5x, this results in an implied market cap of 714 billion won. The bankers then applied an IPO discount range of 14.9% to 31.1%, resulting in an IPO price range of 8,500 won to 10,500 won. 

South Korea

JNTC Co.,Ltd operates electronics production businesses. The Company manufactures and sells mobile connectors, batteries, SIM sockets, and other electronics. JNTC conducts businesses across worldwide.

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JNTC (204270 KS)

JNTC IPO Valuation Analysis

JNTC is one of the global leaders in making 3D cover (tempered) glass and connector parts for smartphones. The IPO base deal size is from US$80...

Douglas Kim

JNTC Co IPO Preview

JNTC Co Ltd (204270 KS) is expected to complete its IPO in Korea in the next few weeks. The IPO price range is from 8,500 won to 10,500 won. The...

Douglas Kim

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