Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Our base case valuation of Tailim Paper is target price of 19,692 won, which is at the low end of the IPO price range. We would pass on this IPO. </li>
<li>Our target price of 19,692 won is based on 5.8x EV/EBITDA using 2021 EBITDA. The EV/EBITDA multiple of 5.8x is at a 40% premium to the comps' average. </li>
<li>Tailim Paper has higher sales growth rate, operating margins, and ROE than its peers. However, it has a weaker balance sheet than its peers. </li>
</ul>


Our base case valuation of Tailim Paper is target price of 19,692 won, which is at the low end of the IPO price range. We would pass on this IPO. 
Our target price of 19,692 won is based on 5.8x EV/EBITDA using 2021 EBITDA. The EV/EBITDA multiple of 5.8x is at a 40% premium to the comps' average. 
Tailim Paper has higher sales growth rate, operating margins, and ROE than its peers. However, it has a weaker balance sheet than its peers. 


<ul>
<li>Tailim Paper is the number one company in Korea specializing in the production of corrugated cardboard.</li>
<li>Tailim Paper is getting ready to complete an IPO towards the end of May. The IPO price range is from 19,000 won to 22,000 won.</li>
<li>According to the bankers' valuation, the expected market cap of Tailim Paper is from 616 billion won  to 713 billion won.</li>
</ul>


Tailim Paper is the number one company in Korea specializing in the production of corrugated cardboard.
Tailim Paper is getting ready to complete an IPO towards the end of May. The IPO price range is from 19,000 won to 22,000 won.
According to the bankers' valuation, the expected market cap of Tailim Paper is from 616 billion won  to 713 billion won.


South Korea

Tailim Paper Co., Ltd. manufactures and distributes paper products. The Company produces and sells corrugated fiberboards, surface paper, corrugated paper, linerboard, paper tube, and other related products. Tailim Paper markets its products worldwide.

Tailim Paper (019300 KS)

Tailim Paper IPO Valuation Analysis

Our base case valuation of Tailim Paper is target price of 19,692 won. We would pass on this IPO. Tailim Paper is the market leader of domestic...

Douglas Kim

Tailim Paper IPO Preview

Tailim Paper is the number one company in Korea specializing in the production of corrugated cardboard. Tailim Paper is getting ready to complete...

Douglas Kim