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

Sweden's EQT Partners to Invest Big in SK Shieldus: Impact on SK Square

Korea M&A Outlook in 2023: What's for Sale?

Sweden's EQT to Acquire a 68% Stake in SK Shieldus - Positive Impact on SK Square

SK Square & SK Telecom - Sensitivity Analysis of Dividend Payments & Yields

KB Kookmin Bank Invests 200 Billion Won in SK Square's TMap Mobility

SK Square: NAV Post IPOs of SK Shieldus/OneStore and a Major Investment in ARM Holdings?

The Blockchain Delusion. A (Mostly) Bearish Investment Thesis.

Equity Bottom-Up

<ul>
<li>After the disappointing withdrawal of two IPOs (SK Shieldus and One Store) in 2Q 2022, shares of SK Square are starting to recover in the past seven weeks. </li>
<li>On a NAV basis, shares of SK Square are deeply undervalued. The current valuation reflects a NAV holdco discount of nearly 72.5%.</li>
<li>If we assume a moderate 50% holdco discount, this would suggest a NAV of 74,677 won per share, which would be 81% higher than current price.</li>
</ul>


After the disappointing withdrawal of two IPOs (SK Shieldus and One Store) in 2Q 2022, shares of SK Square are starting to recover in the past seven weeks. 
On a NAV basis, shares of SK Square are deeply undervalued. The current valuation reflects a NAV holdco discount of nearly 72.5%.
If we assume a moderate 50% holdco discount, this would suggest a NAV of 74,677 won per share, which would be 81% higher than current price.


SK Square: The Excessive NAV Valuation Gap Is Likely to Narrow