Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>In this insight, we discuss a trading strategy for APR (278470 KS) which starts trading on 27 February. APR is the most anticipated IPO in Korea so far in 2024.</li>
<li>Our base case (6 months - 1 year) target price of APR is 370,809 won, which is 48% higher than the IPO price. </li>
<li><em><strong>We recommend investors to take some profits off the table (30%-50%) if the share price shoots higher by 100% to 200%+ from the IPO price on the first day.  </strong></em></li>
</ul>


In this insight, we discuss a trading strategy for APR (278470 KS) which starts trading on 27 February. APR is the most anticipated IPO in Korea so far in 2024.
Our base case (6 months - 1 year) target price of APR is 370,809 won, which is 48% higher than the IPO price. 
We recommend investors to take some profits off the table (30%-50%) if the share price shoots higher by 100% to 200%+ from the IPO price on the first day.  


Trading Strategy of APR on the First Day of IPO

<ul>
<li>APR reported a very strong IPO book-building results. APR IPO price has been determined at 250,000 won, which is 25% higher than the high end of the IPO price range.</li>
<li>A total of 1,969 institutional investors participated in this IPO book-building. The demand ratio was 663 to 1. APR IPO will start trading on 26 February. </li>
<li>Our base case valuation of APR is target price of 370,809 won per share which represents a 48% upside from the IPO price of 250,000 won. </li>
</ul>


APR reported a very strong IPO book-building results. APR IPO price has been determined at 250,000 won, which is 25% higher than the high end of the IPO price range.
A total of 1,969 institutional investors participated in this IPO book-building. The demand ratio was 663 to 1. APR IPO will start trading on 26 February. 
Our base case valuation of APR is target price of 370,809 won per share which represents a 48% upside from the IPO price of 250,000 won. 


Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The December 2024 index review results for the KOSPI Indices were announced after the close on Thursday 21st November 2024.</li>
<li>There will be four ADDs and five DELs for KOSPI 200 during the December 2024 index rebal event. </li>
<li>We predicted 8 out of 9 changes correctly. We missed one of the DELs and we expected a couple extra changes which did not materialize.</li>
</ul>


The December 2024 index review results for the KOSPI Indices were announced after the close on Thursday 21st November 2024.
There will be four ADDs and five DELs for KOSPI 200 during the December 2024 index rebal event. 
We predicted 8 out of 9 changes correctly. We missed one of the DELs and we expected a couple extra changes which did not materialize.


KOSPI200 Dec24 Rebal: 4 ADDs, 5 DELs, Big ADV on Small Stocks

<ul>
<li>APR announced it will delay its IPO. Now, APR's book building has been postponed to 2 to 8 February. The IPO price range remains the same.</li>
<li>The company has provided updated preliminary sales and operating profits for 2023 in the revised IPO prospectus. Revenue was a bit light but OP was better than expected in 4Q23.</li>
<li>Our base case valuation of APR is 370,809 won per share which represents an 85% upside from the high end of the bankers' valuation range (200,000 won).</li>
</ul>


APR announced it will delay its IPO. Now, APR's book building has been postponed to 2 to 8 February. The IPO price range remains the same.
The company has provided updated preliminary sales and operating profits for 2023 in the revised IPO prospectus. Revenue was a bit light but OP was better than expected in 4Q23.
Our base case valuation of APR is 370,809 won per share which represents an 85% upside from the high end of the bankers' valuation range (200,000 won).


<ul>
<li>Our base case valuation of APR is implied price of 370,809 won per share, representing an 85% upside from the high end of the bankers' valuation range. </li>
<li>We estimate APR to generate sales of 683.9 billion won (up 25.7% YoY) and operating profit of 114.6 billion won (up 39.5% YoY) in 2024. </li>
<li>APR is one of the best IPOs in the Korean cosmetics sector in the past several years.</li>
</ul>


Our base case valuation of APR is implied price of 370,809 won per share, representing an 85% upside from the high end of the bankers' valuation range. 
We estimate APR to generate sales of 683.9 billion won (up 25.7% YoY) and operating profit of 114.6 billion won (up 39.5% YoY) in 2024. 
APR is one of the best IPOs in the Korean cosmetics sector in the past several years.


South Korea

APR Corporation of Korea operates cosmetics businesses. The Company develops and produces facial mask, lotion, elite fluid, and other products. APR also develops and manufactures beauty devices.

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APR (278470 KS)

Trading Strategy of APR on the First Day of IPO

APR starts trading tomorrow. We recommend investors to take some profits off the table (30%-50%) if the share price shoots higher by 100% to 200%+...

Douglas Kim

APR IPO Book-Building Results Analysis

APR reported a very strong IPO book-building results. APR IPO price has been determined at 250,000 won, which is 25% higher than the high end of...

Douglas Kim

KOSPI200 Dec24 Rebal: 4 ADDs, 5 DELs, Big ADV on Small Stocks

The KOSPI 200 December 2024 rebal has been announced. We got 8/9 right. One was borderline. One false positive is an issue we are checking, but the...

Travis Lundy

Why Is APR IPO Getting Delayed?

APR announced it will delay its IPO. Its book building has been postponed to 2 to 8 February. The IPO price range is the same. The company has...

Douglas Kim

APR IPO Valuation Analysis

Our base case valuation of APR is implied price of 370,809 won per share, representing an 85% upside from the high end of the bankers' valuation...

Douglas Kim

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