Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

Sanil Electric Co., Ltd. operates electrical equipment manufacturing businesses. The Company produces oil-immersed transformers, cast resin transformers, dry-type transformers, reactors, and other products. Sanil Electric conducts businesses in South Korea.

<ul>
<li>Sanil Electric reported excellent IPO book building results. The IPO price has been determined at 35,000 won, which is 16.7% higher than the high end of the IPO price range.</li>
<li>The demand ratio from 2,205 institutional investors was 414 to 1. Sanil Electric (062040 KS) IPO will start trading on 29 July 2024. </li>
<li>Our base case valuation of Sanil Electric is market cap of 1.8 trillion won or target price of 58,593 won (67% higher than the IPO price of 35,000 won).</li>
</ul>


Sanil Electric reported excellent IPO book building results. The IPO price has been determined at 35,000 won, which is 16.7% higher than the high end of the IPO price range.
The demand ratio from 2,205 institutional investors was 414 to 1. Sanil Electric (062040 KS) IPO will start trading on 29 July 2024. 
Our base case valuation of Sanil Electric is market cap of 1.8 trillion won or target price of 58,593 won (67% higher than the IPO price of 35,000 won).


Sanil Electric IPO Book Building Results Analysis

i-Scream Media is a digital education content company.

<ul>
<li>Our valuation analysis suggests a base case implied market cap of 567 billion won or implied price per share of 41,450 won.</li>
<li>This suggests a 3% upside to the high end of the IPO price range. We would not subscribe to this IPO due to lack of upside.</li>
<li>Our base case valuation is based on P/E of 18.8x using the company's net profit of 30.2 billion won in 2023.</li>
</ul>


Our valuation analysis suggests a base case implied market cap of 567 billion won or implied price per share of 41,450 won.
This suggests a 3% upside to the high end of the IPO price range. We would not subscribe to this IPO due to lack of upside.
Our base case valuation is based on P/E of 18.8x using the company's net profit of 30.2 billion won in 2023.


SIGONG TECH Co., Ltd. plans, designs, builds, and executes pavilions for display and exhibition purposes.  The Company's major customers are museums, science centers, theaters, theme parks, and educational institutions.  SIGONG TECH also provides architectural and interior design services.

<ul>
<li>I-Scream Media is getting ready to complete its IPO on KOSDAQ exchange in August. The IPO price range is from 32,000 won to 40,200 won. </li>
<li>I-Scream Media is one of the the leading digital education platform companies in Korea. Its I-Scream S platform is used by more than 93% of elementary school classrooms in Korea.</li>
<li>Post IPO, Sigong Tech will have a 23.7% stake in I-Scream Media. Sigong Tech's stake in I-Scream media (at high end of IPO value) is 157% of its market cap.</li>
</ul>


I-Scream Media is getting ready to complete its IPO on KOSDAQ exchange in August. The IPO price range is from 32,000 won to 40,200 won. 
I-Scream Media is one of the the leading digital education platform companies in Korea. Its I-Scream S platform is used by more than 93% of elementary school classrooms in Korea.
Post IPO, Sigong Tech will have a 23.7% stake in I-Scream Media. Sigong Tech's stake in I-Scream media (at high end of IPO value) is 157% of its market cap.


JUNJIN Construction & Robot / Equity Capital Markets

Junjin Construction And Robot Co.,Ltd. operates pump manufacturing businesses. The Company produces and sells boom pumps, line pumps, placing booms, stationary pumps, and other products. Junjin Construction And Robot conducts businesses in South Korea.

<ul>
<li>Junjin Construction &amp; Robot is getting ready to complete its IPO in KOSPI in August. The IPO price range is from 13,800 won to 15,700 won. </li>
<li>The IPO offering is from 42.5 billion won to 48.3 billion won. The book building for the institutional investors is from 30 July to 5 August. </li>
<li>The integration of robotics into construction processes is a cornerstone of Junjin's operations. Its main product is the concrete pump vehicle which pumps cement or concrete at a construction site.</li>
</ul>


Junjin Construction &amp; Robot is getting ready to complete its IPO in KOSPI in August. The IPO price range is from 13,800 won to 15,700 won. 
The IPO offering is from 42.5 billion won to 48.3 billion won. The book building for the institutional investors is from 30 July to 5 August. 
The integration of robotics into construction processes is a cornerstone of Junjin's operations. Its main product is the concrete pump vehicle which pumps cement or concrete at a construction site.


Junjin Construction and Robot IPO Preview

Shift Up is an all-in -one game design and development studio that crosses a wide range of fields from game production to promotional video and music production, based on original illustration and solid planning and programming skills.

<ul>
<li>In this insight, we discuss a trading strategy for Shift Up which starts trading on 11 July. Shift Up is one of the most anticipated IPOs in Korea this year.</li>
<li>Our base case (6 months - 1 year) target price of Shift Up is 95,510 won, which is 59% higher than the IPO price.</li>
<li><em><strong>We recommend investors to take some profits (about 50% of invested capital) if the share price shoots higher by 100% or more from the IPO price on the first day. </strong></em></li>
</ul>


In this insight, we discuss a trading strategy for Shift Up which starts trading on 11 July. Shift Up is one of the most anticipated IPOs in Korea this year.
Our base case (6 months - 1 year) target price of Shift Up is 95,510 won, which is 59% higher than the IPO price.
We recommend investors to take some profits (about 50% of invested capital) if the share price shoots higher by 100% or more from the IPO price on the first day. 


Trading Strategy of Shift Up on the First Day of IPO

Coverage of South Korea IPOs & Placements