Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Capital Markets

LG Electronics Inc. manufactures and markets digital display equipment and home appliances. The Company produces and markets flat panel televisions, A/V products, washing machines, air conditioners and refrigerators as well as telecommunications equipment such as smart phones and tablets.

<ul>
<li>LG Electronics India posted strong profit growth for FY24, reinforcing its leadership in India’s booming consumer durables sector—making now an ideal window for an IPO in India.</li>
<li>The company reportedly aims to raise USD1-USD1.5 billion early next year, potentially valuing its Indian operations at over USD10 billion.</li>
<li>With government initiatives improving housing quality, electrification, and water access, white goods penetration is set to rise, supporting future demand growth.</li>
</ul>


LG Electronics India posted strong profit growth for FY24, reinforcing its leadership in India’s booming consumer durables sector—making now an ideal window for an IPO in India.
The company reportedly aims to raise USD1-USD1.5 billion early next year, potentially valuing its Indian operations at over USD10 billion.
With government initiatives improving housing quality, electrification, and water access, white goods penetration is set to rise, supporting future demand growth.


LG Electronics India IPO: Strike While the Iron Is Hot. Cash in on Growth Momentum

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

The goal of The Born Korea, which operates a brand with reasonable prices and popular menus, is to create a meal where all customers can enjoy a hearty meal at an affordable price while also feeling happy.

<ul>
<li>The Born Korea reported excellent book building results. It priced its IPO at 34,000 won, which is 21% higher than the high end of the IPO price range.</li>
<li>A total of 2,216 institutions participated in the IPO demand forecast and the competition rate was 734 to 1.</li>
<li>According to our valuation analysis, it suggests a base case implied price of 40,230 won, which is 18% higher than the IPO price. </li>
</ul>


The Born Korea reported excellent book building results. It priced its IPO at 34,000 won, which is 21% higher than the high end of the IPO price range.
A total of 2,216 institutions participated in the IPO demand forecast and the competition rate was 734 to 1.
According to our valuation analysis, it suggests a base case implied price of 40,230 won, which is 18% higher than the IPO price. 


The Born Korea IPO Book Building Results Analysis

Orum Therapeutics / Equity Capital Markets

Orum Therapeutics, Inc. operates as a clinical stage biotech company. The Company develops cell-penetrating antibodies, biomedical therapy applications, and pharmaceuticals for cancer and immune diseases. Orum Therapeutics serves clients worldwide.

<ul>
<li>Our base case target price for Orum Therapeutics is 35,170 won per share, which is within the IPO price range of 30,000 won to 36,000 won per share. </li>
<li>Given the lack of upside relative to the target price, we have a Negative View of this IPO. </li>
<li>FSS has requested correction to the company's IPO prospectus. As a result, it now appears the IPO could be delayed. </li>
</ul>


Our base case target price for Orum Therapeutics is 35,170 won per share, which is within the IPO price range of 30,000 won to 36,000 won per share. 
Given the lack of upside relative to the target price, we have a Negative View of this IPO. 
FSS has requested correction to the company's IPO prospectus. As a result, it now appears the IPO could be delayed. 


Korea Zinc Co., Ltd. specializes in non-ferrous metal smelting industry.  The Company manufactures zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper.  Korea Zinc provides its products to domestic and overseas markets.

<ul>
<li>According to Korea Zinc, it plans to disclose the treasury shares tender offer results on 28 October.</li>
<li>We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post announcement of the tender offer results.</li>
<li>All in all, this M&amp;A fight for Korea Zinc remains tight with a slight advantage to MBK/Young Poong alliance.</li>
</ul>


According to Korea Zinc, it plans to disclose the treasury shares tender offer results on 28 October.
We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post announcement of the tender offer results.
All in all, this M&amp;A fight for Korea Zinc remains tight with a slight advantage to MBK/Young Poong alliance.


Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?

Hyundai Motor India  / Equity Capital Markets

Hyundai Motor India Limited (HMIL) manufactures automobiles. The Company offers new and used cars, vans, trucks, and sport utility vehicles along with financing, leasing, and maintenance services. HMIL serves customers globally.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hyundai-motor-india-ltd" target="_blank" data-smartkarma-citation="entities:40900:1" rel="noopener">Hyundai Motor India </a>  is expected to close flat or slightly positive today, as low retail participation and modest expectations for gains on listing day could limit selling pressure.</li>
<li>Many retail investors skipped the IPO, influenced by 'finfluencers' who had largely advised against it based on misinterpreted valuation comparison with <a href="https://www.smartkarma.com/entities/maruti-suzuki-india-ltd" target="_blank" data-smartkarma-citation="entities:733:1" rel="noopener">Maruti Suzuki India (MSIL IN)</a> .</li>
<li>Hyundai Motor India's meaningful discount to Maruti Suzuki on operating profit based valuation multiples suggest room for outperformance in the medium term.</li>
</ul>



Hyundai Motor India   is expected to close flat or slightly positive today, as low retail participation and modest expectations for gains on listing day could limit selling pressure.
Many retail investors skipped the IPO, influenced by 'finfluencers' who had largely advised against it based on misinterpreted valuation comparison with Maruti Suzuki India (MSIL IN) .
Hyundai Motor India's meaningful discount to Maruti Suzuki on operating profit based valuation multiples suggest room for outperformance in the medium term.


Hyundai Motor India IPO: Little Downside. Low Retail Interest-Myopia, Misguidance, Misinterpretation

Coverage of South Korea IPOs & Placements

South Korea ECM
Coverage of South Korea IPOs & Placements

LG Electronics India IPO: Strike While the Iron Is Hot. Cash in on Growth Momentum

LG Electronics India is well poised for an IPO in India after strong profit growth, aiming to raise USD1-USD1.5 billion and potentially valuing...

Devi Subhakesan

The Born Korea IPO Book Building Results Analysis

The Born Korea reported excellent book building results. It priced its IPO at 34,000 won, which is 21% higher than the high end of the IPO price...

Douglas Kim

Orum Therapeutics IPO Valuation Analysis

Our base case target price for Orum Therapeutics is 35,170 won per share, which is within the IPO price range of 30,000 won to 36,000 won per share.

Douglas Kim

Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?

We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post...

Douglas Kim

Hyundai Motor India IPO: Little Downside. Low Retail Interest-Myopia, Misguidance, Misinterpretation

Listing day Outlook - Retail selling pressure could be muted. Institutional investors are expected to buy on any price dips, and the stock is...

Devi Subhakesan

LG Electronics India IPO: Strike While the Iron Is Hot. Cash in on Growth Momentum

​LG Electronics India is well poised for an IPO in India after strong profit growth, aiming to raise USD1-USD1.5 billion and potentially valuing...

Devi Subhakesan

The Born Korea IPO Book Building Results Analysis

The Born Korea reported excellent book building results. It priced its IPO at 34,000 won, which is 21% higher than the high end of the IPO price...

Douglas Kim

Orum Therapeutics IPO Valuation Analysis

Our base case target price for Orum Therapeutics is 35,170 won per share, which is within the IPO price range of 30,000 won to 36,000 won per share.

Douglas Kim

Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?

We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post...

Douglas Kim

Hyundai Motor India IPO: Little Downside. Low Retail Interest-Myopia, Misguidance, Misinterpretation

Listing day Outlook - Retail selling pressure could be muted. Institutional investors are expected to buy on any price dips, and the stock is...

Devi Subhakesan

LG Electronics India is well poised for an IPO in India after strong profit growth, aiming to raise USD1-USD1.5 billion and potentially valuing...