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

Namyang Dairy Products: Long Legal Dispute to Be Finally Decided by Supreme Court in January 2024

Biggest Beneficiary in Korea from China's Two Children Per Family Policy?

Higher Milk Demand in Korea, Lots of Lattes, & John Robbins of Baskin Robbins

China May Scrap The Restriction of Childbirths - Impact on Baby Formula Related Stocks in China

Quick Picks that Are Hopeful of Keeping Delighting Chinese Consumers

Event-Driven

It was reported after the market close today that <a href="https://finance.naver.com/item/news_read.nhn?article_id=0004593532&amp;office_id=008&amp;code=003920&amp;page=&amp;sm=title_entity_id.basic" target="_blank" rel="noopener">Hahn &amp; Co</a> (a large private equity firm in Korea) has acquired the controlling stake of <a href="https://www.smartkarma.com/entities/namyang-dairy-products-co" target="_blank" data-smartkarma-citation="entities:16249:1" rel="noopener">Namyang Dairy Products Co (003920 KS) </a>from the founder and related parties. Hahn &amp; Co paid 310.7 billion won for a 52.63% (0.379 million shares) of Namyang Dairy, which currently has a market cap of 316 billion won. Prior to the sale, Namyang Dairy Chairman Hong Won-Sik had a 51.68% stake in the company. <div class="content-highlight">
Over the next 2-3 years, we believe Namyang Dairy Products' shares could rise nearly 100%+ from current levels, which would suggest market cap of 632 billion won or 878,000 won. This represents a P/B multiple of 0.7x, which is at the high end of the P/B multiple for the company in the past four years. 
With Hahn &amp; Co getting rid of the bad corporate governance problems and infusing the company with better professional managers, we believe Namyang Dairy Products could be an excellent turn-around story and the valuation multiples could rise to the historical high levels. 
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It was reported after the market close today that Hahn &amp; Co (a large private equity firm in Korea) has acquired the controlling stake of Namyang Dairy Products Co (003920 KS) from the founder and related parties. Hahn &amp; Co paid 310.7 billion won for a 52.63% (0.379 million shares) of Namyang Dairy, which currently has a market cap of 316 billion won. Prior to the sale, Namyang Dairy Chairman Hong Won-Sik had a 51.68% stake in the company. 
Over the next 2-3 years, we believe Namyang Dairy Products' shares could rise nearly 100%+ from current levels, which would suggest market cap of 632 billion won or 878,000 won. This represents a P/B multiple of 0.7x, which is at the high end of the P/B multiple for the company in the past four years. 
With Hahn &amp; Co getting rid of the bad corporate governance problems and infusing the company with better professional managers, we believe Namyang Dairy Products could be an excellent turn-around story and the valuation multiples could rise to the historical high levels. 


Korea Small Cap Gem #9: Namyang Dairy Products - Chairman Sells & Minority Shareholders Cheer