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
- 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
- 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
- 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.
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