External broker reports(aggregated public sources), Daishin Securities

Daishin Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul><li>Strong core business (advertising/commerce) performance expected in 1Q24</li><li>Need to watch China’s active commerce market expansion</li><li>Even considering China’s impact, too much concerns priced in</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Strong core business (advertising/commerce) performance expected in 1Q24Need to watch China’s active commerce market expansionEven considering China’s impact, too much concerns priced inContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Naver (035420 KS Apr 17, 2024) - Too Much Concerns, Even Considering China

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Naver Corp (035420 KS) is trying to complete the IPO of its affiliate Webtoon Entertainment in the US stock market as early as June 2024. 
</li>
<li>The expected value of Webtoon Entertainment (post IPO) is about US$3 billion to US$4 billion. Webtoon Entertainment is seeking to raise about US$500 million in this IPO. </li>
<li>The IPO of Webtoon Entertainment in the US is likely to have a positive impact on Naver Corp (035420 KS).</li>
</ul>


Naver Corp (035420 KS) is trying to complete the IPO of its affiliate Webtoon Entertainment in the US stock market as early as June 2024. 

The expected value of Webtoon Entertainment (post IPO) is about US$3 billion to US$4 billion. Webtoon Entertainment is seeking to raise about US$500 million in this IPO. 
The IPO of Webtoon Entertainment in the US is likely to have a positive impact on Naver Corp (035420 KS).


Initial Thoughts on the Webtoon Entertainment IPO

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

<ul>
<li>Kakao Bank (KB) is South Korea’s largest digital bank. It's a subsidiary of Kakao, which holds a 27.3% stake post listing.</li>
<li>It is a branchless digital bank that only started operations in 2017. As of Sep 21, it had a loan book of US$21bn, deposit base of US$24bn and 17.4m customers.</li>
<li>Even though Kakao started operations only in July 2017, by 2020 it had already garnered more than 1% market share of overall loans and deposits in South Korea.</li>
</ul>


Kakao Bank (KB) is South Korea’s largest digital bank. It's a subsidiary of Kakao, which holds a 27.3% stake post listing.
It is a branchless digital bank that only started operations in 2017. As of Sep 21, it had a loan book of US$21bn, deposit base of US$24bn and 17.4m customers.
Even though Kakao started operations only in July 2017, by 2020 it had already garnered more than 1% market share of overall loans and deposits in South Korea.


2022 High Conviction - Kakao Bank - A Long Way to Go

<ul>
<li>Naver Corp (035420 KS) is planning to complete an IPO of Naver Webtoon on NASDAQ in 2024.</li>
<li>Naver Webtoon generated sales of 548.9 billion won (up 54.5% YoY) and net profit of 68.6 billion won (up 17.1% YoY) in 2022.</li>
<li>Naver Corp's Contents unit which includes the Naver Webtoon business posted solid revenue growth of 40.1% YoY to reach 420.4 billion won in 2Q 2023.</li>
</ul>


Naver Corp (035420 KS) is planning to complete an IPO of Naver Webtoon on NASDAQ in 2024.
Naver Webtoon generated sales of 548.9 billion won (up 54.5% YoY) and net profit of 68.6 billion won (up 17.1% YoY) in 2022.
Naver Corp's Contents unit which includes the Naver Webtoon business posted solid revenue growth of 40.1% YoY to reach 420.4 billion won in 2Q 2023.


South Korea

Naver Corp. provides Internet site with web portal services, such as search engine, online game and content development.  The Company also offers marketing service through text and banner advertisement.

Naver Corp (035420 KS)

Naver (035420 KS Apr 17, 2024) - Too Much Concerns, Even Considering China

Strong core business (advertising/commerce) performance expected in 1Q24. Need to watch China’s active commerce market expansion

Daishin Securities

Initial Thoughts on the Webtoon Entertainment IPO

Naver is trying to complete the IPO of its affiliate Webtoon Entertainment in the US stock market. The expected value of Webtoon Entertainment is...

Douglas Kim

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

2022 High Conviction - Kakao Bank - A Long Way to Go

Kakao Bank (KB) is South Korea’s largest digital bank. It's a subsidiary of Kakao, which holds a 27.3% stake post listing.

Sumeet Singh

Naver Webtoon to List on NASDAQ in 2024

Naver is planning to complete an IPO of Naver Webtoon on NASDAQ in 2024. Naver Webtoon currently generates about half of its transactions in Japan,...

Douglas Kim