Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

We are writing about COVID-19 in Korea since this is one of the most important factors that have been impacting the Korean stock market. In this analysis, we provide a comprehensive analysis of all the important data that have been publicly available on the COVID-19 coronavirus at the KCDC (Korea Center for Disease Control). In addition to the daily updates on confirmed cases and deaths, we also provide the data on the daily and the cumulative number of people that are tested for COVID-19 as well as those that have been tested negative. <ul>
<li>
Number of people tested(cumulative)
</li>
<li>Total number of people confirmed/Total number of people tested (%)</li>
<li>Death rate (cumulative deaths/total confirmed cases) </li>
<li>Geographic breakdown </li>
<li>Confirmed cases &amp; deaths (by age group &amp; gender) </li>
</ul><div class="content-highlight">The next 2-3 weeks are very crucial in terms of data coming out for COVID-19 confirmed cases in South Korea. If the confirmed cases revert back to an increasing trend (which can occur due to the community spread at the call center in Seoul) affecting family members, etc, this will raise further concerns about the difficulty of controlling this virus. If South Korea succeeds in better controlling further spread of this virus in the next 2-3 weeks, this could also provide some additional hope for other countries such as the U.S. which is just in the initial stages of a rapid outbreak of the coronavirus. </div>

We are writing about COVID-19 in Korea since this is one of the most important factors that have been impacting the Korean stock market. In this analysis, we provide a comprehensive analysis of all the important data that have been publicly available on the COVID-19 coronavirus at the KCDC (Korea Center for Disease Control). In addition to the daily updates on confirmed cases and deaths, we also provide the data on the daily and the cumulative number of people that are tested for COVID-19 as well as those that have been tested negative. 

Number of people tested(cumulative)

Total number of people confirmed/Total number of people tested (%)
Death rate (cumulative deaths/total confirmed cases) 
Geographic breakdown 
Confirmed cases &amp; deaths (by age group &amp; gender) 
The next 2-3 weeks are very crucial in terms of data coming out for COVID-19 confirmed cases in South Korea. If the confirmed cases revert back to an increasing trend (which can occur due to the community spread at the call center in Seoul) affecting family members, etc, this will raise further concerns about the difficulty of controlling this virus. If South Korea succeeds in better controlling further spread of this virus in the next 2-3 weeks, this could also provide some additional hope for other countries such as the U.S. which is just in the initial stages of a rapid outbreak of the coronavirus. 

An Outbreak of New COVID-19 Cases in Seoul: Will This Lead to a Rise in New Cases in South Korea?

Equity Capital Markets

Metanet Mplatform / Equity Capital Markets

Our base case valuation of Metanet Mplatform is EV of 296 billion won, a market cap of 360 billion won, and an implied price of 17,215 won, which is 25% higher than the mid-point of the bankers' IPO price range of 12,500 won to 15,000 won. As such, we have a positive view of the Metanet Mplatform IPO. The company's core business is in the customer/contact centers. Driven by technology innovation, customer/contact centers are becoming increasingly automated, which will likely provide an attractive opportunity for the company to capitalize on its know-how of this business to further improve upon its economies of scale and reduce costs.Lemon has received the highest interest level (measured in terms of platform views per report) among the four Korean IPOs that we have written about. So if the level of interest in Lemon is 100, JNTC is 90 and Metanet Mplatform is much lower at 50. Overall, among these four companies, Lemon is likely to receive the highest institutional investors' interest, followed by JNTC, Metanet Mplatform, and NPD.  Now, the more difficult part (this is where the art of investing really comes into play) is to perceive and understand how much of this investors' interest will have factored in the IPO demand and their share prices.

Our base case valuation of Metanet Mplatform is EV of 296 billion won, a market cap of 360 billion won, and an implied price of 17,215 won, which is 25% higher than the mid-point of the bankers' IPO price range of 12,500 won to 15,000 won. As such, we have a positive view of the Metanet Mplatform IPO. The company's core business is in the customer/contact centers. Driven by technology innovation, customer/contact centers are becoming increasingly automated, which will likely provide an attractive opportunity for the company to capitalize on its know-how of this business to further improve upon its economies of scale and reduce costs.Lemon has received the highest interest level (measured in terms of platform views per report) among the four Korean IPOs that we have written about. So if the level of interest in Lemon is 100, JNTC is 90 and Metanet Mplatform is much lower at 50. Overall, among these four companies, Lemon is likely to receive the highest institutional investors' interest, followed by JNTC, Metanet Mplatform, and NPD.  Now, the more difficult part (this is where the art of investing really comes into play) is to perceive and understand how much of this investors' interest will have factored in the IPO demand and their share prices. 

Metanet Mplatform IPO Valuation & Interest Levels of Lemon, JNTC, Metanet Mplatform, & NPD IPOs

<a href="https://www.smartkarma.com/entities/metanet-mplatform" target="_blank" data-smartkarma-citation="entities:28844:1" rel="noopener">Metanet Mplatform (321080 KS)</a> is planning to complete an IPO in the Korean stock market is early March. The IPO base deal size range is from $78 million to $93 million. According to the bankers' valuation, the expected market cap after the IPO is from 262 billion won to 314 billion won. <div class="content-highlight">
Metanet Mplatform is a leading Korean provider of Business Process Outsourcing (BPO) services. The company's focus is on the outsourcing of customer/contact centers, printing, and Big Data driving consulting &amp; marketing services.
The bankers used the average EV/EBITDA and P/E valuation to derive the implied price of 17,023 won (pre IPO discount). After an IPO discount range of 11.89%-26.57%, they derived an implied IPO price range of 12,500 won to 15,000 won. 
</div>

Metanet Mplatform (321080 KS) is planning to complete an IPO in the Korean stock market is early March. The IPO base deal size range is from $78 million to $93 million. According to the bankers' valuation, the expected market cap after the IPO is from 262 billion won to 314 billion won. 
Metanet Mplatform is a leading Korean provider of Business Process Outsourcing (BPO) services. The company's focus is on the outsourcing of customer/contact centers, printing, and Big Data driving consulting &amp; marketing services.
The bankers used the average EV/EBITDA and P/E valuation to derive the implied price of 17,023 won (pre IPO discount). After an IPO discount range of 11.89%-26.57%, they derived an implied IPO price range of 12,500 won to 15,000 won. 


Metanet Mplatform (321080 KS)

An Outbreak of New COVID-19 Cases in Seoul: Will This Lead to a Rise in New Cases in South Korea?

We are writing about COVID-19 in Korea since this is one of the most important factors that have been impacting the Korean stock market. In this...

Douglas Kim

Metanet Mplatform IPO Valuation & Interest Levels of Lemon, JNTC, Metanet Mplatform, & NPD IPOs

Our base case valuation of Metanet Mplatform is EV of 296 billion won, a market cap of 360 billion won, and an implied price of 17,215 won, which...

Douglas Kim

Metanet Mplatform IPO Preview

Metanet Mplatform (321080 KS) is planning to complete an IPO in the Korean stock market is early March. The IPO base deal size range is from $78...

Douglas Kim