Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

A Pair Trade Between LG Chem (Common) And LG Chem (Preferred)

Hoban Construction Acquires a 17.4% Stake in HanjinKal

LG Electronics India IPO Valuation Analysis

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, we discuss a pair trade between LG Electronics (066570 KS) (long) and LG Display (034220 KS) (short). </li>
<li>LG Display is likely to face greater margin pressures than LG Electronics this year, which could lead a bigger consensus estimates downward revisions for LG Display than LG Electronics. </li>
<li>Both LG Electronics and LG Display are trading at 0.6x P/B multiples. Given LG Electronics' much higher ROE vs LG Display, LG Electronics should be trading at higher valuation multiples. </li>
</ul>


In this insight, we discuss a pair trade between LG Electronics (066570 KS) (long) and LG Display (034220 KS) (short). 
LG Display is likely to face greater margin pressures than LG Electronics this year, which could lead a bigger consensus estimates downward revisions for LG Display than LG Electronics. 
Both LG Electronics and LG Display are trading at 0.6x P/B multiples. Given LG Electronics' much higher ROE vs LG Display, LG Electronics should be trading at higher valuation multiples. 


A Pair Trade Between LG Electronics and LG Display