Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Daesang is one of the leading F&amp;B companies in Korea. It is especially well known for its sauces, kimchi, and miwon (MSG) food ingredients. </li>
<li>Daesang has relatively attractive valuation multiples. It is trading at P/E of 5.6x, P/B of 0.46x, and EV/EBIT of 6.4x in 2025. Daesang consistently generates positive net profit.</li>
<li>Daesang Holdings (084690 KS) is the largest shareholder of Daesang Corp with a 39.3% stake. Two sisters (Lim Sang-Min and Lim Se-Ryeong) are the two largest shareholders of Daesang Holdings.</li>
</ul>


Daesang is one of the leading F&amp;B companies in Korea. It is especially well known for its sauces, kimchi, and miwon (MSG) food ingredients. 
Daesang has relatively attractive valuation multiples. It is trading at P/E of 5.6x, P/B of 0.46x, and EV/EBIT of 6.4x in 2025. Daesang consistently generates positive net profit.
Daesang Holdings (084690 KS) is the largest shareholder of Daesang Corp with a 39.3% stake. Two sisters (Lim Sang-Min and Lim Se-Ryeong) are the two largest shareholders of Daesang Holdings.


Korea Small Cap Gem #31: Daesang - A Consistently Profitable F&B Company Run by the Lim Sisters

Event-Driven

<ul>
<li>On 16 January, Dongwon Industries (006040 KS) announced that it will cancel 10.46 million shares, representing 22.5% of outstanding shares.</li>
<li>We are positive on Dongwon Industries. This large amount of share cancellation will boost the company's earnings per share and book value per share.</li>
<li>The shares subject to cancellation are the treasury stocks acquired by Dongwon Industries when it merged with Dongwon Enterprises in 2022.</li>
</ul>


On 16 January, Dongwon Industries (006040 KS) announced that it will cancel 10.46 million shares, representing 22.5% of outstanding shares.
We are positive on Dongwon Industries. This large amount of share cancellation will boost the company's earnings per share and book value per share.
The shares subject to cancellation are the treasury stocks acquired by Dongwon Industries when it merged with Dongwon Enterprises in 2022.


Dongwon Industries - Announces Cancellation of 22.5% of Outstanding Shares

Equity Capital Markets

Dongwon Industries / Equity Capital Markets

<ul>
<li>It was reported in the local Korean <a href="https://economist.co.kr/article/view/ecn202309260026" target="_blank" rel="noopener">media</a> that the Dongwon Group is considering on listing three private companies including Starkist, Dongwon Loex, and Dongwon Home Food.</li>
<li>Prior to their IPOs, Dongwon Group is reviewing the potential of selling partial stakes in these companies in pre-IPO investments.</li>
<li>One of the major purposes of the IPOs would be to gain access to more capital which could be used by the Dongwon Group to acquire HMM. </li>
</ul>


It was reported in the local Korean media that the Dongwon Group is considering on listing three private companies including Starkist, Dongwon Loex, and Dongwon Home Food.
Prior to their IPOs, Dongwon Group is reviewing the potential of selling partial stakes in these companies in pre-IPO investments.
One of the major purposes of the IPOs would be to gain access to more capital which could be used by the Dongwon Group to acquire HMM. 


Three IPO Candidates of the Dongwon Group (StarKist, Dongwon Loex, and Dongwon Home Food)

<ul>
<li>Dongwon Industries (006040 KS) plans to merge with Dongwon Enterprise, paving the way for the latter company to complete a back door public listing.</li>
<li>We believe this merger between Dongwon Industries and Dongwon Enterprise will have a positive impact on Dongwon Industries.</li>
<li>Once the merger is completed, there could be less pressure "to keep the share price of Dongwon Industries intentionally low" in order have more beneficial merger ratio with Dongwon Enteprise. </li>
</ul>


Dongwon Industries (006040 KS) plans to merge with Dongwon Enterprise, paving the way for the latter company to complete a back door public listing.
We believe this merger between Dongwon Industries and Dongwon Enterprise will have a positive impact on Dongwon Industries.
Once the merger is completed, there could be less pressure "to keep the share price of Dongwon Industries intentionally low" in order have more beneficial merger ratio with Dongwon Enteprise. 


Merger of Dongwon Industries & Dongwon Enterprise

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

Hanil Cement Co Ltd/New / Index Rebalance

<ul>
<li>Over 3/4th of the way through the review period for the June rebalance, we see 7 potential changes to the KOSPI200 Index. Most are high probability changes.</li>
<li>Potential inclusions: F&amp;F (383220 KS), SD Biosensor (137310 KS), Meritz Fire &amp; Marine (000060 KS), Iljin Hysolus (271940 KS), K Car (381970 KS), Hanil Cement (300720 KS), Hana Tour (039130).</li>
<li>Potential deletions: Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Nexen Tire (002350 KS), Hyundai Home Shopping (057050 KS), Cuckoo Homesys (284740 KS), Sk Discovery (006120), Grand Korea Leisure (114090).</li>
</ul>


Over 3/4th of the way through the review period for the June rebalance, we see 7 potential changes to the KOSPI200 Index. Most are high probability changes.
Potential inclusions: F&amp;F (383220 KS), SD Biosensor (137310 KS), Meritz Fire &amp; Marine (000060 KS), Iljin Hysolus (271940 KS), K Car (381970 KS), Hanil Cement (300720 KS), Hana Tour (039130).
Potential deletions: Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Nexen Tire (002350 KS), Hyundai Home Shopping (057050 KS), Cuckoo Homesys (284740 KS), Sk Discovery (006120), Grand Korea Leisure (114090).


KOSPI200 June Index Rebalance Preview: 7 Changes as Adds Outperform Deletes

South Korea

Dongwon F&B Co., Ltd. manufactures various processed food products. The Company' s products include agricultural and marine products, beverages, dairy products, processed meat, fast food, frozen food, and ginseng. The company's main product in early stage was canned tuna and expanded their business into a variety of food production.

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Dongwon F&B (049770 KS)

Korea Small Cap Gem #31: Daesang - A Consistently Profitable F&B Company Run by the Lim Sisters

Daesang is one of the leading F&B companies in Korea. It is especially well known for its sauces, kimchi, and miwon (MSG) food ingredients.

Douglas Kim

Dongwon Industries - Announces Cancellation of 22.5% of Outstanding Shares

On 16 January, Dongwon Industries (006040 KS) announced that it will cancel 10.46 million shares, representing 22.5% of outstanding shares.

Douglas Kim

Three IPO Candidates of the Dongwon Group (StarKist, Dongwon Loex, and Dongwon Home Food)

It was reported in the local Korean media that the Dongwon Group is considering on listing three private companies including Starkist, Dongwon...

Douglas Kim

Merger of Dongwon Industries & Dongwon Enterprise

Dongwon Industries plans to merge with Dongwon Enterprise, paving the way for the latter company to complete a backdoor public listing. This merger...

Douglas Kim

KOSPI200 June Index Rebalance Preview: 7 Changes as Adds Outperform Deletes

With just over a month to go in the review period, we see 7 potential changes to the KOSPI200 Index. Most changes are high probability and the...

Brian Freitas

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