Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>S&amp;D Co Ltd (260970 KS) specializes in making Korean sauces, food ingredients, seasoning materials, and specialty health-related raw materials.</li>
<li>Its price has declined by 60% since its highs in June 2025. Market has provided a "fat pitch" to buy S&amp;D shares at a big discount to its intrinsic value. </li>
<li>If I attach a 9x P/E on estimated net profit of 50.2 billion won (2028E), this would suggest market cap of 451 billion won (195% higher than current market cap).</li>
</ul>


S&amp;D Co Ltd (260970 KS) specializes in making Korean sauces, food ingredients, seasoning materials, and specialty health-related raw materials.
Its price has declined by 60% since its highs in June 2025. Market has provided a "fat pitch" to buy S&amp;D shares at a big discount to its intrinsic value. 
If I attach a 9x P/E on estimated net profit of 50.2 billion won (2028E), this would suggest market cap of 451 billion won (195% higher than current market cap).


Korea Small Cap Gem #62: S&D (Specializes on Korean Sauces and Food Ingredients)

Cross Asset Strategy

<ul>
<li>Capitalizing on the lower share prices combined with the government's pressure for Corporate Value up improvements, the share buybacks surged in Korea in 2024.</li>
<li>As of 27 December 2024, the total treasury shares planned acquisition amount by Korean companies increased by 215% YoY to 11.83 trillion won in 2024.</li>
<li>There have been some mixed share price performances among the companies announcing meaningful share buyback/cancellation announcements this year.</li>
</ul>


Capitalizing on the lower share prices combined with the government's pressure for Corporate Value up improvements, the share buybacks surged in Korea in 2024.
As of 27 December 2024, the total treasury shares planned acquisition amount by Korean companies increased by 215% YoY to 11.83 trillion won in 2024.
There have been some mixed share price performances among the companies announcing meaningful share buyback/cancellation announcements this year.


Event-Driven

<ul>
<li>In this insight, we review the major tender offers of Korean companies in 2024. The tender offers have mostly been profitable for the investors in these targeted companies.</li>
<li>What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week and month.</li>
<li>The number of tender offers in Korea increased from 6 in 2020 to 12 in 2021, 7 in 2022, 18 in 2023, and 28 in 2024.</li>
</ul>


In this insight, we review the major tender offers of Korean companies in 2024. The tender offers have mostly been profitable for the investors in these targeted companies.
What is also impressive is that even after the 1st day of trading (post tender offer announcement), there have been extra alpha for the following week and month.
The number of tender offers in Korea increased from 6 in 2020 to 12 in 2021, 7 in 2022, 18 in 2023, and 28 in 2024.


A Review of Tender Offers in Korea in 2024

South Korea

S&D Co., Ltd. manufactures supplementary dietary products and pro-biotic extracts. The Company produces various food additives. S&D markets its products in Korea.

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S&D Co Ltd (260970 KS)

Korea Small Cap Gem #62: S&D (Specializes on Korean Sauces and Food Ingredients)

S&D Co Ltd offers Korean sauces and food ingredients, with shares currently trading at a fat discount to intrinsic value, presenting a buying...

Douglas Kim

A Review of Tender Offers in Korea in 2024

In this insight, we review the major tender offers of Korean companies in 2024. The tender offers have mostly been profitable for the investors in...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Korea Small Cap Gem #62: S&D (Specializes on Korean Sauces and Food Ingredients)

​S&D Co Ltd offers Korean sauces and food ingredients, with shares currently trading at a fat discount to intrinsic value, presenting a buying...

Douglas Kim

Surging Share Buybacks in Korea in 2024

Capitalizing on the lower share prices combined with the government's pressure for Corporate Value up improvements, the share buybacks surged in...

Douglas Kim

A Review of Tender Offers in Korea in 2024

In this insight, we review the major tender offers of Korean companies in 2024. The tender offers have mostly been profitable for the investors in...

Douglas Kim

S&D Co Ltd offers Korean sauces and food ingredients, with shares currently trading at a fat discount to intrinsic value, presenting a buying...