Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

Lvmh Moet Hennessy Louis Vuitton / Equity Bottom-Up

<ul>
<li>In this insight, we provide the income statement comparisons of the eight largest global luxury brand Korea operations including Louis Vuitton Korea, Prada Korea, Ralph Lauren Korea, and Moncler Korea.</li>
<li>In 2022, Korea spent $16.8 billion in luxury goods, representing per capita consumption of $325 per person, surpassing the United States ($280 per person) and China ($55 per person). </li>
<li>Luxury brand spending in Korea is often a leading indicator of global luxury brand spending. Luxury brand spending in Korea has been weak this year and this continued in 3Q23.</li>
</ul>


In this insight, we provide the income statement comparisons of the eight largest global luxury brand Korea operations including Louis Vuitton Korea, Prada Korea, Ralph Lauren Korea, and Moncler Korea.
In 2022, Korea spent $16.8 billion in luxury goods, representing per capita consumption of $325 per person, surpassing the United States ($280 per person) and China ($55 per person). 
Luxury brand spending in Korea is often a leading indicator of global luxury brand spending. Luxury brand spending in Korea has been weak this year and this continued in 3Q23.


Income Statement Analysis of Global Luxury Brand Korea Operations and Luxury Brand Spending Slowdown

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> last week started to rally, so we want to look at WEEKLY resistance levels to evaluate where the current rally could end.</li>
<li>MRM Resistance Levels where the rally could stop are: 339, 348, 356.</li>
<li>Based on the current MRM pattern reading we expect the index to either roll down this week, or to rally for +2 more weeks (CC=+4) and then go down.</li>
</ul>


The KOSPI 200 INDEX last week started to rally, so we want to look at WEEKLY resistance levels to evaluate where the current rally could end.
MRM Resistance Levels where the rally could stop are: 339, 348, 356.
Based on the current MRM pattern reading we expect the index to either roll down this week, or to rally for +2 more weeks (CC=+4) and then go down.


EQD | KOSPI 200 Index Approaching Resistance

<ul>
<li>The <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> has reached a tipping point: the previous Bull run trend is cracking, there is a high chance the index will drop.</li>
<li>The current MRM WEEKLY pattern is bearish: if the index falls for more than 1 week it may tailspin into a 4-6 weeks correction in September.</li>
<li>Cover your LONG holdings, support can be found at 325 (Q2), 315 (Q3) and 297 (Inner Fence).</li>
</ul>


The KOSPI 200 INDEX has reached a tipping point: the previous Bull run trend is cracking, there is a high chance the index will drop.
The current MRM WEEKLY pattern is bearish: if the index falls for more than 1 week it may tailspin into a 4-6 weeks correction in September.
Cover your LONG holdings, support can be found at 325 (Q2), 315 (Q3) and 297 (Inner Fence).


EQD | KOSPI 200 Index's Decisive Week: New WEEKLY LONG Supports

<ul>
<li>SK Networks announced that it will repurchase 100 billion won in common shares and also cancel nearly 70 billion won of existing treasury shares.</li>
<li>The combined share buyback and treasury shares cancellation will represent nearly 14% of the company's total outstanding shares.  </li>
<li>The combined share buyback and treasury shares cancellation which will represent nearly 14% of the company's total outstanding shares, will likely have a positive impact on SK Network's share price.</li>
</ul>


SK Networks announced that it will repurchase 100 billion won in common shares and also cancel nearly 70 billion won of existing treasury shares.
The combined share buyback and treasury shares cancellation will represent nearly 14% of the company's total outstanding shares.  
The combined share buyback and treasury shares cancellation which will represent nearly 14% of the company's total outstanding shares, will likely have a positive impact on SK Network's share price.


SK Networks: 100 Billion Won in Share Buyback + 70 Billion Won in Treasury Shares Cancellation

<ul>
<li>Hotel Shilla, one of the largest operators of duty free shops in Korea, will be a major beneficiary of the return of the group tours from China to Korea.</li>
<li>We expect the consensus to raise the company's sales estimates in 2024 to 2025 by about 3-7% and net profit estimates by 20-25%+ in this period. </li>
<li>Currently, Hotel Shilla Pref/Common stock price ratio is 0.61 which is 22% below the five year average of 0.78. </li>
</ul>


Hotel Shilla, one of the largest operators of duty free shops in Korea, will be a major beneficiary of the return of the group tours from China to Korea.
We expect the consensus to raise the company's sales estimates in 2024 to 2025 by about 3-7% and net profit estimates by 20-25%+ in this period. 
Currently, Hotel Shilla Pref/Common stock price ratio is 0.61 which is 22% below the five year average of 0.78. 


Hotel Shilla Pref: Discount Vs Common to Narrow and Boost from Chinese Group Tours to Korea

South Korea

Shinsegae Co., Ltd. operates department stores in South Korea.  The Company retails food, clothing, household goods, electronics, and other items through several branch stores.

Lotte Shopping Co., Ltd. operates department stores and discount stores in South Korea.  The Company retails clothing, household goods, foods and other items through several branches.  Lotte Shopping also operates supermarkets and movie theaters.

GwangjuShinsegae Co., Ltd. manages department store in Gwangju city located in southwest of Korea.  The Company's merchandise includes men and women's clothes, foods, and consumer goods.

Bubang Co., Ltd manufactures and distributes household electrical appliances, especially rice cooker and steamer.

SAVEZONE I&C Corp. operates discount stores that sell consumer products, foods, clothing, and appliances.  The Company also runs a community center, which offers cultural services.

VenueG Co.,Ltd. operates a department store and discount store. The Company markets food, clothing, appliance, and household products. VenueG also operates real estate development business.

Daegu Department Store Co., Ltd. operates a department store in Daegu. The Company also sells its goods through a Internet shopping mall.

Hyundai Home Shopping Network Corporation  mechandises consumer products. The Company's products include clothes, home appliances, food, and luxuries. Hyundai Home Shopping retails through TV home shoppoing channels, catalogs, and the Inte rnet shopping mall.

Hyundai Home Shopping Network (057050 KS)

Shinsegae International Co., Ltd. was spun off from Shinsegae in 1996.  The company imports and distributes famous foreign brands and manufactures/distribut es domestic brand.  The Company's line of business includes the wholesale distribution of men's and women's apparel.

CJ ENM, Ltd. retails clothes, kitchen utensils, home appliances, and jewelry.  The Company sells its merchandise through TV home shopping channels, catalogs, and the Internet shopping mall.  CJ ENM operates cable television business through a subsidiary.

V-Mart Retail Limited owns, operates, and franchises a chain of family lifestyle stores in India. The Company operates medium sized hypermarket format retail stores that sell clothes, accessories, and footwear for men, women, and kids; cosmetics, luggage, toys, and games; and food, non-food, and staple items.

Dashang Group Co., Ltd. owns and operates department stores in the northeast of China.  The Company also provides entertainment and food services.

Groupon, Inc. operates a shopping website that shares information on local goods, services, and cultural events for businesses and consumers worldwide. The Company provides information on activities, travel destinations, consumer products, and live events.

Rainbow Department Store Co., Ltd. operates chain department store.  The Company operates retail department stores and franchises shopping malls.

Chengdu Hongqi Chain Company Limited operates convenience stores chain. The Company's main products are food, alcoholic drinks and tobacco, and other daily necessities.

Wuhan Department Store Group Co., Ltd. owns and operates department stores. Through its subsidiaries, the Company also invests in real estate development, property management, and food services.

Wuhan Department Store Group Co Ltd. (000501 CH)

Bukalapak.com PT Tbk provides e-discretionary services. The Company offers range of electronics, food, shoes, apparel, watches, bags, cosmetics products, and other accessories. Bukalapak.com serves customers in Indonesia.

Nanjing Xinjiekou Department Store Co. Ltd. operates department stores in Nanjing, Jiangsu.  Through its subsidiaries, the Company also develops real estate and manufactures pharmaceuticals.

Nanjing Xinjiekou Department S (600682 CH)

Hangzhou Jiebai Group Co., Ltd. operates department stores, invests in import and export trading, operates hotels, and provides advertising services.

Beijing Cuiwei Tower Co. Ltd. retails diversified products. The Company sells apparel, jewelry, cosmetics, sports products, home appliances, handicrafts, photographic equipment, household goods, and other goods through its department stores. Beijing Cuiwei Tower also provides online sales services.

Hyundai Department Store Co., Ltd. operates department stores under the name of Hyundai Department over nationwide.  The Company also produces home shopping programs for cable channels and sells merchandise through home shopping programs.

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Hyundai Dept Store Co (069960 KS)

Income Statement Analysis of Global Luxury Brand Korea Operations and Luxury Brand Spending Slowdown

In this insight, we provide income statement comparisons of the eight largest global luxury brand Korea operations including Louis Vuitton Korea,...

Douglas Kim

EQD | KOSPI 200 Index Approaching Resistance

The KOSPI 200 is rallying, check MRM resistance levels to evaluate how far it can go before rolling down. The index should either decline this week...

Nico Rosti

EQD | KOSPI 200 Index's Decisive Week: New WEEKLY LONG Supports

The KOSPI 200 Index may have reached the end of its 2023 rally: a correction is probable in September, read the MRM LONG support prices to know...

Nico Rosti

Hotel Shilla Pref: Discount Vs Common to Narrow and Boost from Chinese Group Tours to Korea

Currently, Hotel Shilla Pref/Common stock price ratio is 0.61 which is 22% below the five year average of 0.78. Hotel Shilla is one of the biggest...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Income Statement Analysis of Global Luxury Brand Korea Operations and Luxury Brand Spending Slowdown

In this insight, we provide income statement comparisons of the eight largest global luxury brand Korea operations including Louis Vuitton Korea,...

Douglas Kim

EQD | KOSPI 200 Index Approaching Resistance

The KOSPI 200 is rallying, check MRM resistance levels to evaluate how far it can go before rolling down. The index should either decline this week...

Nico Rosti

EQD | KOSPI 200 Index's Decisive Week: New WEEKLY LONG Supports

The KOSPI 200 Index may have reached the end of its 2023 rally: a correction is probable in September, read the MRM LONG support prices to know...

Nico Rosti

SK Networks: 100 Billion Won in Share Buyback + 70 Billion Won in Treasury Shares Cancellation

On 18 August, SK Networks (001740 KS) announced a tender offer of SK Rent A Car (068400 KS). SK Networks plans to acquire a 100% stake in SK Rent-A...

Douglas Kim

Hotel Shilla Pref: Discount Vs Common to Narrow and Boost from Chinese Group Tours to Korea

Currently, Hotel Shilla Pref/Common stock price ratio is 0.61 which is 22% below the five year average of 0.78. Hotel Shilla is one of the biggest...

Douglas Kim