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

Korea Stock Market Monthly Recap #21 (January 2018)

Cafe 24 IPO Preview (Part 1): Korea's Shopify - Leading Contender For "Tesla" Requirements Based IPO

Cafe24 IPO Preview (Part 2): Korea's Shopify, But at What Price?

Update on the Put Back Option Clause for IPOs in the Korea Stock Market

Equity Capital Markets

<ul><li><strong>Our valuation analysis of <a href="https://www.smartkarma.com/entities/25912" target="_blank" data-smartkarma-citation="entities:25912:1">Cafe24 (042000 KF)</a> suggests that we would take this IPO deal. Our base one-year target price suggests a price target of 82,798 won, which is 45% higher than the high end of the IPO price range. </strong></li><li>In this report, we provide a valuation analysis of <a href="https://www.smartkarma.com/entities/25912" target="_blank" data-smartkarma-citation="entities:25912:1">Cafe24 (042000 KF)</a> making adjustments to the company's internal forecasts and applying appropriate valuation multiples. We also compare Cafe24 to Shopify's valuations. </li><li>Many investors are betting that a key competitive advantage of Shopify is the stickiness of its services with its customers and relatively low customer turnover. This trait also exists with Cafe24, albeit it is competing mostly in a smaller e-commerce market in Korea. </li></ul>

Our valuation analysis of Cafe24 (042000 KF) suggests that we would take this IPO deal. Our base one-year target price suggests a price target of 82,798 won, which is 45% higher than the high end of the IPO price range. In this report, we provide a valuation analysis of Cafe24 (042000 KF) making adjustments to the company's internal forecasts and applying appropriate valuation multiples. We also compare Cafe24 to Shopify's valuations. Many investors are betting that a key competitive advantage of Shopify is the stickiness of its services with its customers and relatively low customer turnover. This trait also exists with Cafe24, albeit it is competing mostly in a smaller e-commerce market in Korea. 

Cafe24 Corp

Cafe24: Valuation Analysis