Category

South Korea

Apr 18
0

Daily Brief South Korea: Lock&Lock, Jeil Machine & Solution and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case
  • Lock & Lock: Affinity Equity Partners Offers a Tender Offer of a 30% Stake at 8,750 Won Per Share
  • Jeil M&S IPO Bookbuilding Results Analysis

Lock&Lock Tender Offer: Different Trading Angles Compared to Recent Ssangyong C&E Case

By Sanghyun Park

  • The tendering price is ₩8,750, roughly 7% higher than the last close. However, Affinity’s commitment makes this event noteworthy.
  • Lock&Lock requires Affinity to target 30%. To reach 95%, securing 25% is needed, much higher than SsangYong C&E, indicating potential price volatility.
  • A second public offering is likely due to the widening gap between the ownership threshold and actual acquisition percentage in Lock&Lock. This could impact prices significantly during the tendering period.

Lock & Lock: Affinity Equity Partners Offers a Tender Offer of a 30% Stake at 8,750 Won Per Share

By Douglas Kim

  • On 17 April, Affinity Equity Partners offered a tender offer of a 30% stake in Lock & Lock at 8,750 won per share.
  • The tender offer period is from 18 April to 14 May.  The number of shares that are included in this tender offer is 13.14 million shares (30.33% of outstanding shares).  
  • Lock & Lock’s share price could trade higher close to the tender offer price of 8,750 won as the date as the end of the tender offer period approaches.

Jeil M&S IPO Bookbuilding Results Analysis

By Douglas Kim

  • Jeil M&S reported excellent IPO bookbuilding results. Jeil M&S’s IPO price has been determined at 22,000 won per share (22% higher than the high end of the IPO price range).
  • A total of 2,164 institutional investors participated in this IPO book building. The demand ratio was 646 to 1. Samhyun will start trading on 30 April 2024. 
  • Our base case valuation of Jeil M&S is target price of 24,354 won per share, which is 11% higher than the IPO price.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Apr 17
0

Daily Brief South Korea: HPSP, Megastudyedu Co, Ltd. and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Market Chats About What Really Went Down with HPSP This Morning
  • Megastudy Education: A Major Shareholder Return Policy in 2024-2026

Market Chats About What Really Went Down with HPSP This Morning

By Sanghyun Park

  • This morning’s HPSP (403870 KS) situation began with Maekyung’s report, indicating Crescendo PE contacted local bankers for the controlling stake sale.
  • The surge in HPSP’s stock price after Maekyung’s report suggests Crescendo PE’s tacit approval, implying their involvement in the news’s emergence.
  • Despite the likely confirmed sale of Crescendo PE’s stake, timing remains uncertain due to disclosure rules. Continued monitoring is vital, considering potential market reactions later.

Megastudy Education: A Major Shareholder Return Policy in 2024-2026

By Douglas Kim

  • On 16 April, Megastudyedu Co, Ltd. (215200 KS) announced a major shareholder return plan, driving up its share price by 14.2% to 60,400 won. 
  • Driven by this attractive shareholder return plan combined with improving fundamentals, we believe that Megastudy Education’s shares could continue to outperform the market in the next several months. 
  • The total shareholder returns including share buybacks/cancellation and dividends are 60% of the company’s non-consolidated net profit from 2024 to 2026.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Apr 16
0

Daily Brief South Korea: Hanmi Science, Eubiologics and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Imminent Block Deals Involving Hanmi Science Shares Due to Inheritance Tax Payments
  • EuBiologics (206650 KS): Secular Sectoral Tailwind Is Not The Only Catalyst

Imminent Block Deals Involving Hanmi Science Shares Due to Inheritance Tax Payments

By Sanghyun Park

  • The local market anxiously awaits the family’s ability to pay by early May. Failure could prompt the Tax Service to sell their pledged stocks, including Hanmi Science shares.
  • Preventing Tax Service from selling Hanmi Science shares requires additional collateral, unlikely due to existing pledges. Rumor suggests mother and daughter may sell shares before May, followed by Tax Service.
  • Given negotiation uncertainty with KKR, it’s crucial to prepare for potential failure rather than solely relying on success, necessitating a pragmatic approach.

EuBiologics (206650 KS): Secular Sectoral Tailwind Is Not The Only Catalyst

By Tina Banerjee

  • Eubiologics (206650 KS) received UNICEF oral cholera vaccine order of KRW124B in 2024. This is nearly 1.9x higher than last year’s sales, making the case for record-high sales in 2024.
  • Eubiologics is not expecting any near-term competition. The company is boosting its production capability to 90M doses annually by 2025 from 33M doses currently.
  • Eubiologics is planning to enter the premium vaccine market, which should further accelerate the revenue growth and improve its margins. Recently, Bionote (377740 KS) has increased stake in Eubiologics.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Apr 15
0

Daily Brief South Korea: HD Hyundai Marine Solution and more

By | Daily Briefs, South Korea

In today’s briefing:

  • ECM Weekly (15th Apr 2024) – Hyundai Marine, Bharti, Kayou, Zeekr, ChaPanda, Samsung, WT Micr, Sompo

ECM Weekly (15th Apr 2024) – Hyundai Marine, Bharti, Kayou, Zeekr, ChaPanda, Samsung, WT Micr, Sompo

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPO front, the focus remained on HD Hyundai Marine Solution (443060 KS), even as Sichuan Baicha Baidao Industrial is gearing up to launch its IPO. 
  • On the placement front, there were deals across India, South Korea and Australia.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Apr 14
0

Daily Brief South Korea: ESR Group and more

By | Daily Briefs, South Korea

In today’s briefing:

  • ESR: A Diversified Fund Manager and Good Alternative Stock to Own in This Chaotic Time

ESR: A Diversified Fund Manager and Good Alternative Stock to Own in This Chaotic Time

By Jacob Cheng

  • While most HK/China stocks continue to be traded at depressed valuation, we view ESR as an interesting play among most real estate stocks
  • The investment highlights of ESR are: 1) as a leading fund manager with growing AUM and fee income 2) leader in new economy sector, and 3) APAC focused
  • ESR’s EBIT mainly comes from 3 segments: investment, fund management and new economy development.  ESR is now trading at deep discount to NAV

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Apr 12
0

Daily Brief South Korea: HD Hyundai Marine Solution , ICTK and more

By | Daily Briefs, South Korea

In today’s briefing:

  • HD Hyundai Marine Solution IPO Industry Analysis
  • ICTK IPO Valuation Analysis

HD Hyundai Marine Solution IPO Industry Analysis

By Douglas Kim

  • In this insight, we highlight some of the important industry factors impacting HD Hyundai Marine Solution. 
  • Eco-Friendly ships are high-value-added ships that require more parts than conventional ships and are mechanically more complex, so the unit cost of parts is higher than that of conventional ships. 
  • Therefore, the ship AM (aftermarket) is a key industry that is expected to benefit from higher customer demand and increase service prices.

ICTK IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of ICTK is target price of 28,694 won, which is 79% higher than the high end of the IPO price range. 
  • Our base case valuation is based on P/S multiple of 20.8x using our estimated sales of 18.1 billion won in 2025. 
  • ICTK’s operating margin improved from -129.9% in 2022 to -38.2% in 2023. We estimate its operating margin to improve further to -12.4% in 2024 and 17.7% in 2025.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Apr 11
0

Daily Brief South Korea: ICTK and more

By | Daily Briefs, South Korea

In today’s briefing:

  • ICTK IPO Preview

ICTK IPO Preview

By Douglas Kim

  • ICTK is getting ready to complete its IPO in KOSDAQ in May. The IPO price range is from 13,000 won to 16,000 won. 
  • According to the bankers’ valuation, the expected market cap of the company after the listing is 171 billion won to 210 billion won. 
  • ICTK is a security company specializing in Internet of Things (IoT) based on physical copy prevention technology. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Apr 10
0

Daily Brief South Korea: HD Hyundai Marine Solution , KT Corp, Korea Stock Exchange KOSPI 200 and more

By | Daily Briefs, South Korea

In today’s briefing:

  • HD Hyundai Marine Solution IPO Valuation Analysis
  • KT’s Foreign Room Below 7.5%, Weight Down-Adjustment Expected in May, Resulting in 3x ADTV Outflow
  • EQD | KOSPI 200 WEEKLY Buy-The-Dip Opportunity

HD Hyundai Marine Solution IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of HD Hyundai Marine Solution is target price of 98,254 won per share, representing an 18% upside from the high end of the IPO price range.
  • The company’s ROE averaged 67% in 2022 and 2023. In comparison, the comps’ ROE averaged 10.6% in the same period. [HD Hyundai Marine Solution > Comps]
  • Our base case valuation is based on 24.7x P/E (comps’ average) using our estimated net profit of 178.7 billion won for the company in 2024. 

KT’s Foreign Room Below 7.5%, Weight Down-Adjustment Expected in May, Resulting in 3x ADTV Outflow

By Sanghyun Park

  • KT’s foreign ownership declined since January, below 7.5% by last month. If it remains, the adjustment factor halves to 0.25, impacting KT’s Global Index weight.
  • With the May review screening date estimated for April 17th, swift reversal of foreign inflows seems improbable. Thus, KT’s adjustment factor dropping to 0.25 is likely.
  • This could lead to an outflow of 1.6M shares, approximately 3x ADTV. Given the prolonged price impact on telcos, exploring a long-short setup with SKT might be prudent.

EQD | KOSPI 200 WEEKLY Buy-The-Dip Opportunity

By Nico Rosti

  • The KOSPI 200 INDEX is currently pulling back for a 2nd week in a row.
  • This could be an opportunity to go LONG,  if the pullback is limited to this (or at most the next) week closing down and reaching targets between 365 and 338.
  • If the index goes down for 3 weeks and reached below 343 caution is advised: the pullback may be larger than expected in that case.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Apr 09
0

Daily Brief South Korea: Samsung Electronics, Shinsung Delta Tech, NKMax, Orion Holdings and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Samsung Electronics: Block Deal Sale of 5.2 Million Shares by Lee Boo-Jin
  • Samsung Electronics Placement – Better Timing This Time Around
  • KOSDAQ150 Index Rebalance Preview: Potential Adds Still Outperforming
  • Special Changes in KOSDAQ 150: Deletion (NKMAX) + Addition (GI Innovation)
  • Orion Holdings: Updated NAV, Higher Dividend Yield, and Exhuma Catalyst

Samsung Electronics: Block Deal Sale of 5.2 Million Shares by Lee Boo-Jin

By Douglas Kim

  • After the market close on 8 April, it was reported that Lee Boo-Jin will sell 5,247,140 shares of Samsung Electronics in a block deal (up to 443 billion won).
  • The expected block deal sale price is 83,700 to 84,500 won per share, which represents a discount rate of up to 0.95% compared to the closing price on 8 April. 
  • We are positive on this block deal sale and on Samsung Electronics. We would take the deal. 

Samsung Electronics Placement – Better Timing This Time Around

By Sumeet Singh

  • KEB Hana Bank, on behalf of Lee Boo-Jin, is looking to raise up to US$325m via selling 0.1% of  Samsung Electronics (005930 KS).
  • The deal appears to be somewhat well flagged and the company recently reported better operating numbers for 1Q24.
  • In this note, we will run the deal through our ECM framework and talk about the recent updates.

KOSDAQ150 Index Rebalance Preview: Potential Adds Still Outperforming

By Brian Freitas

  • With nearly 85% of the review period complete, there could be 15 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance.
  • Prior to the June rebalance, C&C International (352480 KS) will replace CanariaBio (016790 KS) in the index following CanariaBio being listed as an Administrative Issue and an Investment Attention Issue.
  • The potential adds have outperformed the potential deletes and the KOSDAQ 150 Index since the start of the review period. Lighten positions ahead of the end of the review period.

Special Changes in KOSDAQ 150: Deletion (NKMAX) + Addition (GI Innovation)

By Douglas Kim

  • On 8 April, the Korea Exchange announced special changes to KOSDAQ 150. NKMAX will be excluded from KOSDAQ 150 and it will be replaced by GI Innovation.
  • NKMAX was designated as “administrative issue” and “investment attention issue” on 8 April 2024, which resulted in the Korea Exchange deciding to remove this stock from KOSDAQ 150. 
  • We believe that this inclusion of GI Innovation in KOSDAQ 150 is likely to further positively impact its share price.

Orion Holdings: Updated NAV, Higher Dividend Yield, and Exhuma Catalyst

By Douglas Kim

  • Our NAV valuation suggests implied market cap of 1 trillion won or NAV per share of 15,983 won which is 11% higher than current price.
  • Orion Holdings has attractive dividend yields and payouts. The company’s dividend yield increased from 4.1% in 2021 to 4.6% in 2022 and 5.1% in 2023. 
  • The recent phenomenal performance of the movie Exhuma has resulted in a long-awaited revived positive sentiment on Showbox (which is 57.5% owned by Orion Holdings). 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Apr 08
0

Daily Brief South Korea: GS Holdings, Hanmi Semiconductor and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Observations on Post-Election Flows of Value-Up Stocks, Based on Recent Local Institutional Trades
  • KOSPI200 Index Rebalance Preview: Hanmi Semiconductor (042700 KS) Flying High

Observations on Post-Election Flows of Value-Up Stocks, Based on Recent Local Institutional Trades

By Sanghyun Park

  • Opposition’s probable win in the election sparks concerns about Value-up initiative’s momentum. However, market sentiment doesn’t universally echo these worries.
  • Value-Up stocks’ recent corrections likely stem from Q4 dividend arbitrage liquidation, rather than election result concerns.
  • Post-Election, even if the opposition wins, the left-leaning Value-up program might continue, limiting the opposition’s influence, as seen in recent National Pension Service flows.

KOSPI200 Index Rebalance Preview: Hanmi Semiconductor (042700 KS) Flying High

By Brian Freitas

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free