Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Our base case valuation of Sebit Chem IPO is target price of 50,775 won which is 69% higher than the high end of the IPO price range. </li>
<li>Sebit Chem's business is now mainly composed of recycling waste rechargeable batteries and waste acid (mostly from semiconductor and LCD related products).</li>
<li>Our base case valuation is based on 23.7x P/E (comps' average) using our estimated net profit of 10.8 billion won in 2023. </li>
</ul>


Our base case valuation of Sebit Chem IPO is target price of 50,775 won which is 69% higher than the high end of the IPO price range. 
Sebit Chem's business is now mainly composed of recycling waste rechargeable batteries and waste acid (mostly from semiconductor and LCD related products).
Our base case valuation is based on 23.7x P/E (comps' average) using our estimated net profit of 10.8 billion won in 2023. 


<ul>
<li>Sebit Chem is getting ready to complete its IPO in early August. The IPO price range is from 25,000 won to 30,000 won.</li>
<li>The IPO base deal size is from US$21 million to US$25 million. The expected market cap after the IPO is from 126 billion won to 151 billion won.</li>
<li>Sebit Chem is one of the competitors to Sungeel Hitech which completed a very successful IPO book building. Sebit Chem is also likely to enjoy strong demand among many investors. </li>
</ul>


Sebit Chem is getting ready to complete its IPO in early August. The IPO price range is from 25,000 won to 30,000 won.
The IPO base deal size is from US$21 million to US$25 million. The expected market cap after the IPO is from 126 billion won to 151 billion won.
Sebit Chem is one of the competitors to Sungeel Hitech which completed a very successful IPO book building. Sebit Chem is also likely to enjoy strong demand among many investors. 


Sebit Chem IPO Preview - A Major Competitor to Sungeel Hitech in Rechargeable Batteries Recycling

<ul>
<li>Sungeel Hitech announced its IPO book building results. The IPO price has been determined at 50,000 won, higher than the high end of IPO price of 47,500 won.</li>
<li>The demand ratio for Sungeel Hitech IPO was 2,269.7 to 1 which broke all time records in terms of highest ever demand ratio for a Korean IPO.</li>
<li>Our base case valuation is implied price per won of 70,992 won per share, which represents 42% higher than the IPO price of 50,000 won.</li>
</ul>


Sungeel Hitech announced its IPO book building results. The IPO price has been determined at 50,000 won, higher than the high end of IPO price of 47,500 won.
The demand ratio for Sungeel Hitech IPO was 2,269.7 to 1 which broke all time records in terms of highest ever demand ratio for a Korean IPO.
Our base case valuation is implied price per won of 70,992 won per share, which represents 42% higher than the IPO price of 50,000 won.


Sungeel HiTech IPO - The Highest Ever Bookbuilding Demand Ratio for a Korean IPO

<ul>
<li>Our base case valuation of Sungeel HiTech is target price of 70,992 won per share (49% higher than the high end of the IPO price).  </li>
<li>Our valuation is based on 15.9x P/E (50% discount to comps' average multiple) using our estimated net profit of 54.9 billion won in 2023. </li>
<li>Given the excellent upside, we have a Positive view of the Sungeel HiTech,  which is a leading recycling specialist in Korea that extracts valuable metals from lithium-ion secondary batteries.</li>
</ul>


Our base case valuation of Sungeel HiTech is target price of 70,992 won per share (49% higher than the high end of the IPO price).  
Our valuation is based on 15.9x P/E (50% discount to comps' average multiple) using our estimated net profit of 54.9 billion won in 2023. 
Given the excellent upside, we have a Positive view of the Sungeel HiTech,  which is a leading recycling specialist in Korea that extracts valuable metals from lithium-ion secondary batteries.


<ul>
<li>Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery materials in Korea. </li>
<li>It has experienced excellent growth in sales and profits. It had revenue of 147.3 billion won (up 123.3% YoY) and operating profit of 16.9 billion won in 2021.</li>
<li>The IPO price range is from 40,700 won to 47,500 won. The IPO base deal size ranges from $86 million to $100 million.</li>
</ul>


Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery materials in Korea. 
It has experienced excellent growth in sales and profits. It had revenue of 147.3 billion won (up 123.3% YoY) and operating profit of 16.9 billion won in 2021.
The IPO price range is from 40,700 won to 47,500 won. The IPO base deal size ranges from $86 million to $100 million.


South Korea

Sungeel Hitech Co., Ltd. operates as a leading secondary battery recycling company. The Company provides lithium ion battery recycling, sustainable rechargeable battery recycling, waste batteries full circulatory recycling, and circulation services. Sungeel Hitech markets its products worldwide.

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Sungeel Hitech (365340 KS)

Sebit Chem Valuation Analysis

Our base case valuation of Sebit Chem IPO is target price of 50,775 won which is 69% higher than the high end of the IPO price range.

Douglas Kim

Sebit Chem IPO Preview - A Major Competitor to Sungeel Hitech in Rechargeable Batteries Recycling

Sebit Chem is one of the competitors to Sungeel Hitech which completed a very successful IPO book building. Sebit Chem is also likely to enjoy...

Douglas Kim

Sungeel HiTech IPO - The Highest Ever Bookbuilding Demand Ratio for a Korean IPO

The demand ratio for Sungeel Hitech IPO was 2,269.7 to 1 which broke all time records in terms of highest ever demand ratio for a Korean IPO.

Douglas Kim

Sungeel HiTech IPO Valuation Analysis

Our base case valuation of Sungeel HiTech (leading recycling specialist for lithium-ion secondary batteries) is target price of 70,992 won per...

Douglas Kim

Sungeel HiTech IPO Preview

Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery...

Douglas Kim

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