Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul><li><strong>We start coverage of <a href="https://www.smartkarma.com/entities/8493" target="_blank" data-smartkarma-citation="entities:8493">Interpark Corp</a> with a positive view and a one year price target of 24,200 won (20% upside)</strong>, based on EV/EBITDA multiple of 18x on estimated EBITDA of 48 billion won in 2017.</li><li><strong><a href="https://www.smartkarma.com/entities/8493" target="_blank" data-smartkarma-citation="entities:8493">Interpark Corp</a> is the Korean version of Ticketmaster. </strong><a href="https://www.smartkarma.com/entities/8493" target="_blank" data-smartkarma-citation="entities:8493">Interpark Corp</a> is the dominant ticketing company for live performances such as concerts and musicals with market share of nearly 70%. The company has a fantastic repeat business and highest brand recognition for performance ticketing services. The company has user base of nearly 21 million people. It is also the leading online airline ticketing company with market share of 47% (B2C, online segment).</li><li>We expect the company's sales and operating profit to increase 7% and 23% YoY in 2016, bolstered by the solid business performance of its entertainment/ticketing, online travel as well as reduced operating losses of its online shopping and book businesses. The company's business should rebound materially in 2016 after some external negative events such as MERS virus fear in 2015.</li><li>Among its four business units, the entertainment and online travel generate most of the cash flow and earnings for the company while its online shopping and book business units have been generating operating losses in the past couple of years.</li><li>There has been some nice foreign ownership build-up from 2% in May 2014 to 20% in May 2016. The stock has been trading sideways during this period. The social commerce companies including Coupang, Tmon, and Wemakeprice have aggressively tried to take away market share in the e-commerce space in the past several years. If we see a greater visibility in problems with securing additional funding needs for one of these social commerce companies, this will have a positive impact on its competitors in the e-commerce sectors such as <a href="https://www.smartkarma.com/entities/8493" target="_blank" data-smartkarma-citation="entities:8493">Interpark Corp</a>.</li><li>As the first online shopping company in Korea, <a href="https://www.smartkarma.com/entities/8493" target="_blank" data-smartkarma-citation="entities:8493">Interpark Corp</a> has seen the rise and fall of many competitors in Korea. The company has been in business for two decades and it has the experience and know how in terms of growing its online travel, online shopping and ticketing businesses profitably.</li></ul>

We start coverage of Interpark Corp with a positive view and a one year price target of 24,200 won (20% upside), based on EV/EBITDA multiple of 18x on estimated EBITDA of 48 billion won in 2017.Interpark Corp is the Korean version of Ticketmaster. Interpark Corp is the dominant ticketing company for live performances such as concerts and musicals with market share of nearly 70%. The company has a fantastic repeat business and highest brand recognition for performance ticketing services. The company has user base of nearly 21 million people. It is also the leading online airline ticketing company with market share of 47% (B2C, online segment).We expect the company's sales and operating profit to increase 7% and 23% YoY in 2016, bolstered by the solid business performance of its entertainment/ticketing, online travel as well as reduced operating losses of its online shopping and book businesses. The company's business should rebound materially in 2016 after some external negative events such as MERS virus fear in 2015.Among its four business units, the entertainment and online travel generate most of the cash flow and earnings for the company while its online shopping and book business units have been generating operating losses in the past couple of years.There has been some nice foreign ownership build-up from 2% in May 2014 to 20% in May 2016. The stock has been trading sideways during this period. The social commerce companies including Coupang, Tmon, and Wemakeprice have aggressively tried to take away market share in the e-commerce space in the past several years. If we see a greater visibility in problems with securing additional funding needs for one of these social commerce companies, this will have a positive impact on its competitors in the e-commerce sectors such as Interpark Corp.As the first online shopping company in Korea, Interpark Corp has seen the rise and fall of many competitors in Korea. The company has been in business for two decades and it has the experience and know how in terms of growing its online travel, online shopping and ticketing businesses profitably.

United States

Airbnb, Inc. operates an online marketplace for travel information and booking services. The Company offers lodging, home-stay, and tourism services via websites and mobile applications. Airbnb serves clients worldwide.

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Airbnb (ABNB US)

Interpark - Korea's Ticketmaster

We start coverage of Interpark Corp with a positive view and a one year price target of 24,200 won (20% upside), based on EV/EBITDA multiple of...

Douglas Kim

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