Daily Brief South Korea: Samsung Biologics , Aimed Bio, CJ Corp, Sajo Industries, Lf Corp, Namyang Dairy Products Co, Ray /KR, Satrec Initiative, Taeyoung Engineering & Construction, TS Corporation and more

• Samsung Bioepis Holdings and Samsung Biologics will start to trade on 24 November. We remain positive on Samsung Biologics/Samsung Bioepis Holdings.
• Operating profit more than doubled, up 115.3% YoY in 3Q25, indicating significant operating leverage. The company’s excellent results in 3Q25 is likely to positive impact the newly listed shares. 
• Biologics division achieved 1.26 trillion won in sales with a 50% operating margin, while the Bioepis unit generated sales of 441 billion won with a 29% operating margin in 3Q25.

• Aimed Bio finalized its IPO price at 11,000 won, which is at the high end of the IPO price range. Aimed Bio will be listed on KOSDAQ on 4 December.
• A total of 2,414 domestic and international institutional investors participated in this IPO. The demand ratio of the IPO was 672 to 1 among the institutional investors.
• Based on the final offering price, the offering amount is projected to be approximately 70.7 billion won, resulting in a market capitalization of approximately 705.7 billion won.

• In this insight, we discuss how Olive Young is likely to be a serious long-term threat to Ulta Beauty (ULTA US) (market cap of US$22.3 billion) in the United States. 
• CJ Corp is the largest shareholder of CJ Olive Young. On 19 November, CJ Olive Young announced that it plans to open its first store in California in May 2026.
• There is a growing probability that CJ Olive Young could successfully grow its business in the US, especially due to the continued strong demand for Korean cosmetics.

• Sajo Industries is a major player in the South Korean food industry, with core operations in deep-sea fishing and food processing. The company is undergoing a strategic transformation, expanding its portfolio through acquisitions to become a comprehensive food group.
• Financial performance has been volatile, with recent operating losses and fluctuating cash flows. However, the company is showing signs of recovery in the most recent quarters of 2025. The dividend was suspended in 2024, reflecting the recent financial pressures.
• Corporate governance is a key area of concern, characterized by a complex pyramid-like ownership structure controlled by the founding family. This structure concentrates influence and has led to shareholder activism in the past regarding inter-company transactions.

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• Lf Corp is a deeply undervalued apparel company, evidenced by a Price-to-Book ratio of approximately 0.27 and a high dividend yield, making it attractive to value-focused investors.
• Despite its attractive valuation, the company faces significant headwinds, including declining profitability and negative free cash flow over the past three years, coupled with shrinking market capitalization.
• Operating in the highly competitive and trend-driven South Korean fashion market, Lf Corp‘s future performance hinges on its ability to revitalize its portfolio of established brands and successfully navigate the ongoing shift to online retail.

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• Following years of severe reputational damage and financial losses, Namyang is at a pivotal inflection point under new majority ownership by private equity firm Hahn & Co., which is aggressively implementing governance reforms to rebuild consumer trust.
• The company is showing early signs of a financial turnaround, with a return to profitability and positive operating cash flow in recent quarters after prolonged losses. However, long-term revenue trends remain negative, posing a significant challenge.
• While the domestic market for traditional milk is shrinking due to demographic headwinds, Namyang has an opportunity to capitalize on growing demand for higher-value products like fermented milk, cheese, and health-focused dairy, and is expanding its infant formula exports to Southeast Asia.

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• Ray is a high-risk, high-reward turnaround candidate in the digital dentistry sector. The company has experienced severe financial distress, with significant revenue declines and massive net losses in recent years.
• Recent quarterly results for 2025 show nascent signs of a potential recovery, with a return to profitability in Q3. However, the sustainability of this recovery is highly uncertain given the extreme volatility in historical performance.
• The company’s valuation appears attractive on a price-to-book basis, reflected in its high Smartkarma Value score. However, negative earnings and EBITDA render traditional earnings-based multiples meaningless, and the stock’s market capitalization has plummeted.

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• Satrec Initiative is a key player in the South Korean space industry, specializing in Earth observation (EO) satellite systems and vertically integrated solutions, including ground systems, imagery services, and AI-based analytics.
• The strategic investment by Hanwha Aerospace, making it the largest shareholder, provides significant financial backing and synergies, positioning the company for growth in both domestic and international defense and commercial markets.
• Future growth is underpinned by a strong order backlog, primarily from the South Korean government, and the development of the high-resolution ‘SpaceEye-T’ satellite constellation, which aims to shift the business model towards recurring revenue from data and solution services.

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• Taeyoung E&C is currently undergoing a creditor-led debt restructuring program initiated in late 2023 to avoid bankruptcy, stemming from a severe liquidity crisis tied to its extensive project financing (PF) loan guarantees.
• The company’s financial performance has deteriorated significantly, culminating in a massive net loss and negative operating cash flow in 2023, leading to the suspension of dividends and a complete erosion of capital.
• The future viability of the company is entirely dependent on the successful execution of its high-stakes workout plan, which involves significant asset sales (including stakes in TY Holdings and broadcaster SBS), debt-to-equity swaps, and operational restructuring under the strict oversight of its creditors.

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• TS Corporation operates within a stable, oligopolistic South Korean sugar market, which provides a degree of predictability, though the industry faces headwinds from shifting consumer preferences towards healthier alternatives.
• The company exhibits strong value and dividend characteristics, supported by a consistent payout history and a low price-to-book ratio, suggesting an attractive valuation for income-focused investors.
• Key challenges include navigating the volatility of raw material costs, as South Korea is entirely dependent on sugar imports, and addressing the long-term secular decline in sugar consumption due to growing health consciousness.

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