Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>According to our NAV valuation analysis, it suggests NAV per share of 25,624 won for DN Automotive which is 35% higher than current price.</li>
<li>We assumed DN Automotive's estimated post IPO stake of DN Solutions (72.2% stake) would be worth about 4 trillion won. </li>
<li>We used a very large holdco discount rate of 70%. DN Automotive is not a pure holdco company but a quasi holding company.</li>
</ul>


According to our NAV valuation analysis, it suggests NAV per share of 25,624 won for DN Automotive which is 35% higher than current price.
We assumed DN Automotive's estimated post IPO stake of DN Solutions (72.2% stake) would be worth about 4 trillion won. 
We used a very large holdco discount rate of 70%. DN Automotive is not a pure holdco company but a quasi holding company.


Equity Capital Markets

<ul>
<li>DN Solutions is planning to complete its IPO in Korea in 2025. The expected value of DN Solutions is estimated to be about 5 trillion won to 6 trillion won.</li>
<li>DN Solutions' revenue and operating profit increased at CAGR of 19.9% and 62.2%, respectively from 2020 to 2023.</li>
<li>Currently, the largest shareholder of DN Solutions is GMT Holdings which has a 90.32% stake. DN Automotive (007340 KS) owns a 100% stake in GMT Holdings.</li>
</ul>


DN Solutions is planning to complete its IPO in Korea in 2025. The expected value of DN Solutions is estimated to be about 5 trillion won to 6 trillion won.
DN Solutions' revenue and operating profit increased at CAGR of 19.9% and 62.2%, respectively from 2020 to 2023.
Currently, the largest shareholder of DN Solutions is GMT Holdings which has a 90.32% stake. DN Automotive (007340 KS) owns a 100% stake in GMT Holdings.


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dn-solutions" target="_blank" data-smartkarma-citation="entities:44474:1" rel="noopener">DN Solutions (298440 KS)</a>, the third-largest machining centre/turning centre machine tool manufacturer, seeks to raise US$1.1 billion in a KRX IPO.</li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/dn-solutions-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:180468" rel="noopener">DN Solutions IPO: The Bull Case</a> and <a href="https://www.smartkarma.com/insights/dn-solutions-ipo-the-bear-case" target="_blank" data-smartkarma-citation="insights:180606" rel="noopener">DN Solutions IPO: The Bear Case</a>.</li>
<li>I examine the syndicate's valuation methodology. My analysis suggests that DN Solutions is palatable in the low end of the IPO price range. </li>
</ul>



DN Solutions (298440 KS), the third-largest machining centre/turning centre machine tool manufacturer, seeks to raise US$1.1 billion in a KRX IPO.
We previously discussed the IPO in DN Solutions IPO: The Bull Case and DN Solutions IPO: The Bear Case.
I examine the syndicate's valuation methodology. My analysis suggests that DN Solutions is palatable in the low end of the IPO price range. 


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dn-solutions" target="_blank" data-smartkarma-citation="entities:44474:1" rel="noopener">DN Solutions (298440 KS)</a> (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.</li>
<li>DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.</li>
<li>We have looked at its past performance in our earlier notes. In this note, we will talk about valuations.</li>
</ul>



DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
We have looked at its past performance in our earlier notes. In this note, we will talk about valuations.


DN Solutions IPO - Thoughts on Valuations - Probably Needs a Price Cut

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dn-solutions" target="_blank" data-smartkarma-citation="entities:44474:1" rel="noopener">DN Solutions (298440 KS)</a> (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.</li>
<li>DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.</li>
<li>We have looked at its past performance in our earlier notes. In this note, we will undertake a peer comparison.</li>
</ul>



DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
We have looked at its past performance in our earlier notes. In this note, we will undertake a peer comparison.


South Korea

DN Automotive Corporation manufactures and distributes automobile parts. The Company produces automobile tires, tubes, recycled tires, flaps, automobile vibration proof parts, automobile batteries, and other related products. DN Automotive markets its products worldwide.

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DN Automotive (007340 KS)

DN Automotive NAV Valuation Analysis

According to our NAV valuation analysis, it suggests NAV per share of 25,624 won for DN Automotive which is 35% higher than current price.

Douglas Kim

Initial Thoughts on the DN Solutions IPO

DN Solutions is planning to complete its IPO in Korea in 2025. The expected value of DN Solutions is estimated to be about 5 trillion won to 6...

Douglas Kim

DN Solutions IPO: Valuation Insights

I examine the syndicate's valuation methodology. My analysis suggests that DN Solutions is palatable in the low end of the IPO price range.

Arun George

DN Solutions IPO - Thoughts on Valuations - Probably Needs a Price Cut

DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares. In this note we...

Sumeet Singh

DN Solutions Pre-IPO - Peer Comparison

DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares. In this note, we...

Sumeet Singh

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