Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

SK Holdings Co., Ltd. is a holdings company that is engaged in various industries including energy, chemicals, information technology, semiconductors, marketing, and services businesses in South Korea and internationally.

<ul>
<li>Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. </li>
<li>SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.</li>
<li>Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.</li>
</ul>


Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. 
SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.
Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.


Event-Driven

Asian Terminals, Inc., through its subsidiaries, operates and manages port terminals in the Philippines. The company operates and manages the Manila South Harbor, the Inland Clearance Depot, the Port of Batangas, and the Port of General Santos, as well as off-dock container yards. It provides stevedoring, arrastre, warehousing, storage, carnage, container freight station, domestic cargo handling, passenger terminal, and other port related services for international shipping lines; and trucking, just-in-time delivery, brokerage, and maintenance and repair services. The company was formerly known as Marina Port Services, Inc. Asian Terminals, Inc. was incorporated in 1986 and is headquartered in Manila, the Philippines.

<ul>
<li>Maharlika Investment Corp. (MIC) announced its intentions to launch a tender offer for shares of Asian Terminals. </li>
<li>This could accelerate the delisting of Asian Terminals from the Philippine Stock Exchange (PSE).</li>
<li>Tender offer price is 36 PHP. Upon completion, MIC is expected to hold approximately 11.2% of ATI's outstanding common shares. </li>
</ul>


Maharlika Investment Corp. (MIC) announced its intentions to launch a tender offer for shares of Asian Terminals. 
This could accelerate the delisting of Asian Terminals from the Philippine Stock Exchange (PSE).
Tender offer price is 36 PHP. Upon completion, MIC is expected to hold approximately 11.2% of ATI's outstanding common shares. 


A Tender Offer for Asian Terminals by Maharlika Investment Corp (Philippines Sovereign Wealth Fund)

Equity Capital Markets

SEMIFIVE is a leading design solution provider and pioneer of platform-based custom silicon solutions.

<ul>
<li>SemiFive confirmed its IPO price at 24,000 won, which was at the high end of the IPO price range. </li>
<li>A 43.9% of the total IPO shares are under various lock-up periods lasting from 15 days to 6 months. This is also a bullish sign. </li>
<li>Our base case valuation of SemiFive is implied market cap of 1.4 trillion won or target price of 42,349 won per share, which is 76% higher than the IPO price.</li>
</ul>


SemiFive confirmed its IPO price at 24,000 won, which was at the high end of the IPO price range. 
A 43.9% of the total IPO shares are under various lock-up periods lasting from 15 days to 6 months. This is also a bullish sign. 
Our base case valuation of SemiFive is implied market cap of 1.4 trillion won or target price of 42,349 won per share, which is 76% higher than the IPO price.


SemiFive IPO Bookbuilding Results Analysis

Shinsegae Information & Communication Co / Event-Driven

Shinsegae Information & Communication Co., Ltd. provides systems integration services. The Company offers solutions to help companies manage customer relationships, operational efficiencies, and financial performance. Shinsegae is also a software distributor such as games and 3D animations as well as application service and e-business solution provider.

Shinsegae Information & Communication Co (035510 KS)

<ul>
<li>In the past two years, E Mart Inc (139480 KS) has announced two tender offers of its affiliates including Shinsegae E&amp;C (September 2024) and Shinsegae Food (031440 KS) (December 2025).</li>
<li>We believe the next target of a tender offer by E-Mart could be Shinsegae Information &amp; Communication Co (035510 KS) in 2026/2027. </li>
<li>We provide three main reasons why E-Mart may try to conduct a tender offer of Shinsegae I&amp;C in 2026/2027.</li>
</ul>


In the past two years, E Mart Inc (139480 KS) has announced two tender offers of its affiliates including Shinsegae E&amp;C (September 2024) and Shinsegae Food (031440 KS) (December 2025).
We believe the next target of a tender offer by E-Mart could be Shinsegae Information &amp; Communication Co (035510 KS) in 2026/2027. 
We provide three main reasons why E-Mart may try to conduct a tender offer of Shinsegae I&amp;C in 2026/2027.


Shinsegae I&C - The Next Tender Offer Target by E-Mart?

Hanwha Corporation imports and exports petrochemicals, machinery, automotives, electronics, and steel.  The Company also produces explosives for the defense and construction industries.  In addition, Hanwha manufactures automotive airbag inflators and telecommunication equipment, such as wireless phones and provides financial services through its subsidiaries.

<ul>
<li>Kim Dong-Won and Kim Dong-Sun decided to sell nearly 1.1 trillion won (US$750 million) worth of Hanwha Energy.</li>
<li>Through this sale, Hanwha Energy's value is estimated at approximately 5.5 trillion won. </li>
<li><em><strong>This large scale stake sale could result in negative sentiment/impact on Hanwha Corp and Hanwha Systems. </strong></em></li>
</ul>


Kim Dong-Won and Kim Dong-Sun decided to sell nearly 1.1 trillion won (US$750 million) worth of Hanwha Energy.
Through this sale, Hanwha Energy's value is estimated at approximately 5.5 trillion won. 
This large scale stake sale could result in negative sentiment/impact on Hanwha Corp and Hanwha Systems. 


Sale of 1.1 Trillion Won Worth of Hanwha Energy by Kim Dong-Won and Kim Dong-Sun

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