In today’s briefing:
- HMM’s Shaping up to Be a Solid Pick for Classic Dividend Arbitrage Plays
- Dongbang Medical IPO Preview
- Doosan Corp – NAV Valuation Analysis Amid Index Rebalance Expectations
HMM’s Shaping up to Be a Solid Pick for Classic Dividend Arbitrage Plays
- To stay in the Value-up index by June, HMM needs to maintain high ROE, but with 2023’s dip and a 2024 estimate around mid-10%, they’ll be borderline in the rankings.
- Local markets expect HMM’s dividend payout to range from 840 KRW to mid-1,000 KRW, with a yield of 4.5% to 8%, while futures show mild backwardation in February and March.
- HMM may finalize the dividend and announce the record date by late January, with the record date likely in mid to late February.
Dongbang Medical IPO Preview
- Dongbang Medical is getting ready to complete its IPO in Korea in February 2025. The IPO price range is from 9,000 won to 10,500 won.
- According to the bankers’ valuation, the expected market cap of the comps ranges from 191 billion won to 223 billion won.
- Dongbang Medical specializes in the manufacturing and distribution of acupuncture needles, various cosmetic devices, and other medical devices.
Doosan Corp – NAV Valuation Analysis Amid Index Rebalance Expectations
- Our NAV analysis of Doosan Corp suggests an implied market cap of 3.9 trillion won or implied price per share of 235,039 won which is 17.2% lower than current price.
- Given the lack of upside relative to its NAV, we have a Negative View of Doosan Corp.
- Considering Doosan Group’s repeated corporate governance concerns in the past decade, our holdco discount estimate of 50% is probably generous.
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