Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Softbank Sells $1.0 Billion Additional Worth of Coupang: Continued Overhang Concerns

Kurly's Mgmt Needs to Drastically Lower Valuation Expectations to Complete IPO in Next 6 Months

Coupang: Four Major Factors to Drive Higher Profit Margins in 2022

Softbank Sells $1.69 Billion Worth of Coupang Post Lockup Expiration - Overhang Concerns Continue

Coupang: Down 61% From the Peak, Further 60% Downside Is a Possibility

End of Lock Up Period + Start of Amazon Global Store Korea = Lower Share Price Likely for Coupang

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

<ul>
<li>Coupang reported disappointing results in 3Q 2021. It had sales of $4.6 billion won (up 48.1% YoY but 4.1% below consensus estimates).</li>
<li>One of the most noticeable negative warning sign for Coupang in 3Q 2021 was that its Active Customers declined by 1.2% on a QoQ basis, which is a bad sign.</li>
<li>Another negative on Coupang is the overhang from Softbank's sales of its shares and Softbank could sell more shares of Coupang in the coming months. We remain negative on Coupang. </li>
</ul>


Coupang reported disappointing results in 3Q 2021. It had sales of $4.6 billion won (up 48.1% YoY but 4.1% below consensus estimates).
One of the most noticeable negative warning sign for Coupang in 3Q 2021 was that its Active Customers declined by 1.2% on a QoQ basis, which is a bad sign.
Another negative on Coupang is the overhang from Softbank's sales of its shares and Softbank could sell more shares of Coupang in the coming months. We remain negative on Coupang. 


Coupang - Decline in Active Customers & Lower Than Expected Sales