In today’s briefing:
- Lotte Chilsung Beverage: Block Deal Sale by Hotel Lotte
- Kakao Pay: Comp Valuation Analysis Suggests Additional 40% Downside Risk
Lotte Chilsung Beverage: Block Deal Sale by Hotel Lotte
- After the market close today, Lotte Chilsung Beverage Co announced that there will be a block deal sale of the company (200,000 shares), representing 2.15% of total outstanding shares.
- The discount rate range is 185,250 won to 189,150 won, which are 3% to 5% discount from the closing price today (195,000 won).
- We have a Positive view on Lotte Chilsung Beverage and we would take this deal.
Kakao Pay: Comp Valuation Analysis Suggests Additional 40% Downside Risk
- Our base case valuation of Kakao Pay is market cap of 7.1 trillion won or 53,767 won per share, which represents an additional 40% downside risk from current levels.
- Our base case valuation is based on 5x EV/Sales multiple and applying this to the consensus estimated sales of 898 billion won in 2023.
- The fact that the share price ended 15.6% lower (much bigger than block deal discount range of 8.5% to 11.8%) suggests a lower probability of an MSCI Korea index inclusion.
Before it’s here, it’s on Smartkarma
