Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/samyang-tongsang-co-ltd" target="_blank" data-smartkarma-citation="entities:19909:1" rel="noopener">Samyang Tongsang (002170 KS)</a> is the 14th company in our Korea Small Cap Gems series.</li>
<li>Samyang Tongsang's net cash/market cap ratio is 124%, one of the highest among Korea companies with more than 100 billion won in market cap. </li>
<li>Chairman Huh (age 84) still has a 20% stake in the company. There could be material changes to corporate governance if the ownership structure changes in a few years.</li>
</ul>



Samyang Tongsang (002170 KS) is the 14th company in our Korea Small Cap Gems series.
Samyang Tongsang's net cash/market cap ratio is 124%, one of the highest among Korea companies with more than 100 billion won in market cap. 
Chairman Huh (age 84) still has a 20% stake in the company. There could be material changes to corporate governance if the ownership structure changes in a few years.


Korea Small Cap Gem #14: Samyang Tongsang

Thematic (Sector/Industry)

<ul><li>NS Shopping represents value investing at its core.</li><li>It is an unfairly cheap stock with base case 47% upside from current levels. (Trading at 3.8x EV/EBITDA).</li><li>NS Shopping boasts the highest ROE, operating margins, sales growth, and operating profit growth among its peers.</li><li>Net cash is 35% of its market cap. </li><li>We like the company's focus on food related products for home shopping.  For the company, food related items are returned only 2-3%. This is much lower than other items such as clothing. </li><li>One of the significant trends in the Korean TV industry in the past year has been the increasing popularity of the <em>"Cook-Bang"</em> TV shows, which combine both cooking and entertainment. In particular, four cable TV shows, including "Take Care of My Refrigerator," "What Shall We Eat Today?", "Master Chef Korea," and "Mr. Baik: The Homemade Food Master" have gained rapid popularity. Increasing popularity of the food oriented TV shows also help NS Shopping as these food focused programs mention specific food items and these items often become hot selling items in NS Shopping. </li></ul>

NS Shopping represents value investing at its core.It is an unfairly cheap stock with base case 47% upside from current levels. (Trading at 3.8x EV/EBITDA).NS Shopping boasts the highest ROE, operating margins, sales growth, and operating profit growth among its peers.Net cash is 35% of its market cap. We like the company's focus on food related products for home shopping.  For the company, food related items are returned only 2-3%. This is much lower than other items such as clothing. One of the significant trends in the Korean TV industry in the past year has been the increasing popularity of the "Cook-Bang" TV shows, which combine both cooking and entertainment. In particular, four cable TV shows, including "Take Care of My Refrigerator," "What Shall We Eat Today?", "Master Chef Korea," and "Mr. Baik: The Homemade Food Master" have gained rapid popularity. Increasing popularity of the food oriented TV shows also help NS Shopping as these food focused programs mention specific food items and these items often become hot selling items in NS Shopping. 

Value Investing at Its Core (NS Shopping - 138250KS)

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

<p>For now, CJ officially denied to sell CJ O Shopping (035760). Now, the question is why the talk of possible sale of CJ O Shopping came out in the first place. Despite CJ’s denial, it seems to be true that CJ management made some actions for possible sale of CJ O Shopping. Yes, whether CJ is really serious about selling CJ O Shopping remains uncertain at this moment. But what seems certain is that CJ management and Chairman Lee Jay-hyun appear to be quite determined to concentrate their resources…</p>

For now, CJ officially denied to sell CJ O Shopping (035760). Now, the question is why the talk of possible sale of CJ O Shopping came out in the first place. Despite CJ’s denial, it seems to be true that CJ management made some actions for possible sale of CJ O Shopping. Yes, whether CJ is really serious about selling CJ O Shopping remains uncertain at this moment. But what seems certain is that CJ management and Chairman Lee Jay-hyun appear to be quite determined to concentrate their resources…

South Korea

Samyang Tongsang Co., Ltd. manufactures and markets leather goods, car seats, sports shoes, and other sporting goods.  The Company also produces Nike shoes and baseballs on an original equipment manufacturing (OEM) basis.

Samyang Tongsang (002170 KS)

Korea Small Cap Gem #14: Samyang Tongsang

Samyang Tongsang has net cash of 215 billion won. Given that its market cap of 173 billion won, its net cash/market cap ratio is 124%.

Douglas Kim

Value Investing at Its Core (NS Shopping - 138250KS)

NS Shopping represents value investing at its core. It is an unfairly cheap stock with base case 47% upside from current levels. (Trading at 3.8x...

Douglas Kim

CJ O Shopping (035760) For Sale? Why?

For now, CJ officially denied to sell CJ O Shopping (035760). Now, the question is why the talk of possible sale of CJ O Shopping came out in the...

Sanghyun Park