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/11668" target="_blank" data-smartkarma-citation="entities:11668:1">E1 Corp (017940 KS)</a> has been a forgotten value stock that is worth rediscovering. Its market cap is US$340 million, has a high dividend yield of 4.5% (more than double the average of Korean companies), P/B of only 0.3x, and a major catalyst.</li><li>E1 Corp is the second largest company that distributes and sells LPG in Korea with a 22% market share.</li><li>The major catalyst is the change in regulation. Starting January 2017, anyone in Korea can purchase a used LPG car that is more than five years old. Current regulation restricts the use of LPG cars to taxis, rental cars, handicapped, national merit recepients, hybrid, and certain RVs. In addition, the consumers in Korea could purchase the rental LPG cars after five years of use.</li><li>The number of registered LPG vehicles peaked in 2010 at 2.45 million and this figure has been declining every year since then. At end of 2016, there were 2.16 million registered LPG vehicles in Korea. The change in regulation, combined with higher demand for LPG in the petrochemical sector, and greater demand for LPG vs. diesel vehicles are all positive trends that are likely to help E1 Corp in creating greater demand for LPG in Korea over the next several years.</li></ul>

E1 Corp (017940 KS) has been a forgotten value stock that is worth rediscovering. Its market cap is US$340 million, has a high dividend yield of 4.5% (more than double the average of Korean companies), P/B of only 0.3x, and a major catalyst.E1 Corp is the second largest company that distributes and sells LPG in Korea with a 22% market share.The major catalyst is the change in regulation. Starting January 2017, anyone in Korea can purchase a used LPG car that is more than five years old. Current regulation restricts the use of LPG cars to taxis, rental cars, handicapped, national merit recepients, hybrid, and certain RVs. In addition, the consumers in Korea could purchase the rental LPG cars after five years of use.The number of registered LPG vehicles peaked in 2010 at 2.45 million and this figure has been declining every year since then. At end of 2016, there were 2.16 million registered LPG vehicles in Korea. The change in regulation, combined with higher demand for LPG in the petrochemical sector, and greater demand for LPG vs. diesel vehicles are all positive trends that are likely to help E1 Corp in creating greater demand for LPG in Korea over the next several years.

E1 Corp - LPG Distributor (4.5% Dividend Yield + 0.3x P/B + Major Catalyst!) (Part 1)

South Korea

SK Gas Ltd imports, stores, and distributes liquefied petroleum gas (LPG). The Company supplies its products mainly to domestic market for household, the transportation industry, and petrochemical products manufacturers.

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Sk Gas Ltd (018670 KS)

E1 Corp - LPG Distributor (4.5% Dividend Yield + 0.3x P/B + Major Catalyst!) (Part 1)

E1 Corp (017940 KS) has been a forgotten value stock that is worth rediscovering. Its market cap is US$340 million, has a high dividend yield of...

Douglas Kim

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