Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

Kioxia Holdings  / Equity Capital Markets

<ul>
<li>Kioxia plans to complete its IPO on 18 December, valuing Kioxia at 750 billion yen ($4.8 billion), down nearly 50% from the initial market value estimates about 2-3 months ago. </li>
<li>Kioxia had revenue of 909.4 billion Yen (up 84.6% YoY) and EBITDA of 449.6 billion Yen in 1H FY24, driven by the recovering demand for data center and enterprise SSDs.</li>
<li>As of 2Q 2024, Samsung Electronics was the largest player in the global NAND Flash market with a 36.9% market, followed by SK Group (22.1%), and Kioxia (13.8%).</li>
</ul>


Kioxia plans to complete its IPO on 18 December, valuing Kioxia at 750 billion yen ($4.8 billion), down nearly 50% from the initial market value estimates about 2-3 months ago. 
Kioxia had revenue of 909.4 billion Yen (up 84.6% YoY) and EBITDA of 449.6 billion Yen in 1H FY24, driven by the recovering demand for data center and enterprise SSDs.
As of 2Q 2024, Samsung Electronics was the largest player in the global NAND Flash market with a 36.9% market, followed by SK Group (22.1%), and Kioxia (13.8%).


<ul>
<li>Kioxia is getting ready to complete its IPO in Japan as soon as in October. Kioxia's valuation is expected to exceed JPY 1.5 trillion (about USD 10.3 billion).</li>
<li>SK Hynix's stake in Kioxia (through Bain led consortium) is 19%. SK Hynix's stake in Kioxia would rise to 34% if the CBs are converted into equity. </li>
<li>The IPO of Kioxia has mixed implications for SK Hynix which is a major shareholder. However, the IPO of Kioxia has a more direct negative impact on Samsung Electronics.</li>
</ul>


Kioxia is getting ready to complete its IPO in Japan as soon as in October. Kioxia's valuation is expected to exceed JPY 1.5 trillion (about USD 10.3 billion).
SK Hynix's stake in Kioxia (through Bain led consortium) is 19%. SK Hynix's stake in Kioxia would rise to 34% if the CBs are converted into equity. 
The IPO of Kioxia has mixed implications for SK Hynix which is a major shareholder. However, the IPO of Kioxia has a more direct negative impact on Samsung Electronics.


Initial Thoughts on the Kioxia IPO - Impact on SK Hynix and Samsung Electronics

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

Inspur Electronic Infmtn Indtry / Equity Bottom-Up

<ul><li>India's top player in the industry notes slow passenger EV sales, but sees a boom in commercial EVs.</li><li>Nvidia surpasses revenue estimates with strong data center expansion, leading to mixed analyst reactions.</li><li>China accelerates efforts for chip independence to lessen reliance on US technology in response to potential policies of the new Trump administration.</li></ul>

India's top player in the industry notes slow passenger EV sales, but sees a boom in commercial EVs.Nvidia surpasses revenue estimates with strong data center expansion, leading to mixed analyst reactions.China accelerates efforts for chip independence to lessen reliance on US technology in response to potential policies of the new Trump administration.

Tech Supply Chain Tracker (22-Nov-2024): Commercial EVs thrive despite passenger slowdown.

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>China, India, Saudi Arabia, and Taiwan remain key underweights.  Recovery in Malaysia, Thailand, Turkey, and South Africa, correction in Indonesia and Mexico. Developed Markets the largest overweight for EM investors.</li>
<li>Discretionary, Staples, and Industrials the key overweights, Materials and Energy the underweights. Rotation out of Tech moves positioning from overweight to underweight for the first time since 2019.</li>
<li>Ownership climbs for Meituan and SK Hynix, Baidu and Yum China see sharp declines. Downtrends persist in Vale, Telkom Indonesia.  Recovery in SK Telekom, Garanti Bank, highs in Emaar Properties. </li>
</ul>


China, India, Saudi Arabia, and Taiwan remain key underweights.  Recovery in Malaysia, Thailand, Turkey, and South Africa, correction in Indonesia and Mexico. Developed Markets the largest overweight for EM investors.
Discretionary, Staples, and Industrials the key overweights, Materials and Energy the underweights. Rotation out of Tech moves positioning from overweight to underweight for the first time since 2019.
Ownership climbs for Meituan and SK Hynix, Baidu and Yum China see sharp declines. Downtrends persist in Vale, Telkom Indonesia.  Recovery in SK Telekom, Garanti Bank, highs in Emaar Properties. 


Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Nov 15th which has an aggregated holding worth USD468.9bn.</li>
<li>We estimate that foreign flows to be outflows of USD937mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Naver, Samsung Electronics.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Nov 15th which has an aggregated holding worth USD468.9bn.
We estimate that foreign flows to be outflows of USD937mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Naver, Samsung Electronics.


KRX Foreign Holding Weekly (Nov 15th): Naver, Samsung Electronics

South Korea

SK Hynix Inc. provides products and services for the electronic components industry. The Company manufactures semiconductors, such as dynamic random access memory (DRAM), NAND flash memory, and static random access memory (SRAM) chips.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SK Hynix (000660 KS)

Kioxia IPO Preview

Kioxia plans to complete its IPO on 18 December, valuing Kioxia at 750 billion yen ($4.8 billion), down nearly 50% from the initial market value...

Douglas Kim

Initial Thoughts on the Kioxia IPO - Impact on SK Hynix and Samsung Electronics

Kioxia plans to complete its IPO on 18 December, valuing Kioxia at ¥750 billion ($4.8 billion). The IPO is priced at ¥1,390 ($9) per share. The...

Douglas Kim

Tech Supply Chain Tracker (22-Nov-2024): Commercial EVs thrive despite passenger slowdown.

Passenger EV sales lag behind, but commercial EVs thrive; Nvidia surpasses revenue estimates, sparking analyst reactions; China accelerates chip...

Tech Supply Chain Tracker

Active GEM Funds: Positioning Chart Pack

In this chart pack, we highlight the key country, sector and stock exposures among active Emerging Markets equity funds.

Steven Holden

KRX Foreign Holding Weekly (Nov 15th): Naver, Samsung Electronics

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Naver, Samsung Electronics.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)