Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

Satrec Initiative / Equity Capital Markets

<ul>
<li>In this insight, we discuss the top 12 Korean companies that could benefit from the SpaceX IPO in 2026.</li>
<li>Share prices of 12 Korean companies that are beneficiaries of the SpaceX IPO are up on average 16.7% in the past one week versus KOSPI (up 1.6% in same period).</li>
<li>SeAH Besteel Holdings is a potential supplier of specialty steel to SpaceX. Kencoa Aerospace provided rocket parts to SpaceX. Intellian Technologies partnered with SpaceX on its launch vehicle recovery experiment.</li>
</ul>


In this insight, we discuss the top 12 Korean companies that could benefit from the SpaceX IPO in 2026.
Share prices of 12 Korean companies that are beneficiaries of the SpaceX IPO are up on average 16.7% in the past one week versus KOSPI (up 1.6% in same period).
SeAH Besteel Holdings is a potential supplier of specialty steel to SpaceX. Kencoa Aerospace provided rocket parts to SpaceX. Intellian Technologies partnered with SpaceX on its launch vehicle recovery experiment.


Top 12 Korean Companies - Key Beneficiaries of the SpaceX IPO in 2026

Equity Bottom-Up

<ul>
<li>In 2026, one of the emerging investment themes will likely be the main value-chain suppliers to SpaceX which is gearing up for a huge IPO next year.</li>
<li>Seah Besteel Holdings is expected to be one of the specialty steel suppliers to SpaceX. Seah is investing about US$155 million to build a special alloy plant in the US.</li>
<li>In addition to SpaceX, Seah Besteel Holdings plans to gain additional major US customers including Boeing Co (BA US), Lockheed Martin (LMT US), GE Aerospace, and Pratt &amp; Whitney.</li>
</ul>


In 2026, one of the emerging investment themes will likely be the main value-chain suppliers to SpaceX which is gearing up for a huge IPO next year.
Seah Besteel Holdings is expected to be one of the specialty steel suppliers to SpaceX. Seah is investing about US$155 million to build a special alloy plant in the US.
In addition to SpaceX, Seah Besteel Holdings plans to gain additional major US customers including Boeing Co (BA US), Lockheed Martin (LMT US), GE Aerospace, and Pratt &amp; Whitney.


Korea Small Cap Gem #50: Seah Besteel Holdings - A Potential Beneficiary of SpaceX IPO

Cross Asset Strategy

<ul>
<li>Korea Exchange announced KOSPI 200 rebalance additions and deletions today. There were 14 new additions and deletions (7 each).</li>
<li>Some surprises in KOSPI 200 rebalance included addition of Seah Besteel and deletion of HDC Hyundai Development. </li>
<li>There were a lot more additions and deletions in KOSDAQ 150 (34 total additions and deletions). Among the KOSDAQ 150 additions included Neowiz, JNTC, Lunit, and Jeio.</li>
</ul>


Korea Exchange announced KOSPI 200 rebalance additions and deletions today. There were 14 new additions and deletions (7 each).
Some surprises in KOSPI 200 rebalance included addition of Seah Besteel and deletion of HDC Hyundai Development. 
There were a lot more additions and deletions in KOSDAQ 150 (34 total additions and deletions). Among the KOSDAQ 150 additions included Neowiz, JNTC, Lunit, and Jeio.


KOSPI 200 and KOSDAQ 150 Rebalance Additions and Deletions Announced (December 2023)

KRX announced the rebalance to the KOSPI200 index today. There was not much surprise among the new 10 additions, which included stocks such as Samyang Foods, Zinus, and Kiwoom Securities. However, there was some surprises among the deletions including Unid, <a href="https://www.smartkarma.com/entities/dong-a-socio-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:4271:1" rel="noopener">Dong A Socio Holdings (000640 KS), </a>and <a href="https://www.smartkarma.com/entities/dong-a-st-co-ltd" target="_blank" data-smartkarma-citation="entities:16873:1" rel="noopener">Dong A St (170900 KS)</a>.Among the newly included companies, in terms of their fundamental business outlook and reasonable valuations, we think Samyang Foods, Zinus, and Hanwha Systems fit into these categories. We would be cautious on Big Hit Entertainment, CS Wind, and Shinpoong Pharm as we think there could be some sellers on investors that trade on the "sell on news" strategy of being included in KOSPI 200.

KRX announced the rebalance to the KOSPI200 index today. There was not much surprise among the new 10 additions, which included stocks such as Samyang Foods, Zinus, and Kiwoom Securities. However, there was some surprises among the deletions including Unid, Dong A Socio Holdings (000640 KS), and Dong A St (170900 KS).Among the newly included companies, in terms of their fundamental business outlook and reasonable valuations, we think Samyang Foods, Zinus, and Hanwha Systems fit into these categories. We would be cautious on Big Hit Entertainment, CS Wind, and Shinpoong Pharm as we think there could be some sellers on investors that trade on the "sell on news" strategy of being included in KOSPI 200.  

KOSPI 200 Index Rebalances: No Surprises Among Additions, A Few Surprises Among Deletions

Event-Driven

<ul>
<li>A trading opportunity has opened up after the sharp decline in Seah Holdings' share price on 5 June. Tender offer price (160,000 won is now 11.5% higher than current price).</li>
<li>On 20 May, Seah Holdings (058650 KS) announced a tender offer of 30 billion won worth of its own shares to improve shareholder value.</li>
<li>My base case NAV analysis of Seah Holdings suggests NAV per share of 212,757 won, representing 48% higher than current price. </li>
</ul>


A trading opportunity has opened up after the sharp decline in Seah Holdings' share price on 5 June. Tender offer price (160,000 won is now 11.5% higher than current price).
On 20 May, Seah Holdings (058650 KS) announced a tender offer of 30 billion won worth of its own shares to improve shareholder value.
My base case NAV analysis of Seah Holdings suggests NAV per share of 212,757 won, representing 48% higher than current price. 


Seah Holdings - A Trading Opportunity on a Tender Offer of 30 Billion Won

South Korea

SeAH Besteel Holdings Corporation manufactures and distributes steel products. The Company produces special steel, heavy forgings, spring steel, bearing steel, auto parts, axles, and other related products. SeAH Besteel Holdings markets its products worldwide.

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SeAH Besteel Holdings (001430 KS)

Top 12 Korean Companies - Key Beneficiaries of the SpaceX IPO in 2026

In this insight, we discuss the top 12 Korean companies that could benefit from the SpaceX IPO in 2026. These 12 stocks are on average 16.7% in the...

Douglas Kim

Korea Small Cap Gem #50: Seah Besteel Holdings - A Potential Beneficiary of SpaceX IPO

Seah Besteel Holdings is expected to be one of the specialty steel suppliers to SpaceX which is expected to complete a huge IPO in 2026.

Douglas Kim

KOSPI 200 and KOSDAQ 150 Rebalance Additions and Deletions Announced (December 2023)

Korea Exchange announced KOSPI 200 rebalance additions and deletions today. There were 14 new additions and deletions (7 each). There were a lot...

Douglas Kim

KOSPI 200 Index Rebalances: No Surprises Among Additions, A Few Surprises Among Deletions

KRX anounced its KOSPI200 index rebalance. There were no surprises among the new additions but a few surprises among the deletions.

Douglas Kim

Seah Holdings - A Trading Opportunity on a Tender Offer of 30 Billion Won

A trading opportunity has opened up after the sharp decline in Seah Holdings' share price on 5 June. Tender offer price (160,000 won is now 11.5%...

Douglas Kim

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