Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Equity Capital Markets

<ul>
<li>Of the four peers, only Coupang adopts the gross method. Since the others adopt the net method, it is impossible to compare PSR with OASIS, which uses the gross method.</li>
<li>If they really want to use PSR, it should only be compared with Coupang. Even if we apply CPNG's current EV/Sales multiple (1.36x), it would only slightly exceed ₩0.5T.</li>
<li>A more logical way would be to use EV/GMV. Even in this case, it wouldn't be easy to expect a valuation higher than ₩0.5T.</li>
</ul>


Of the four peers, only Coupang adopts the gross method. Since the others adopt the net method, it is impossible to compare PSR with OASIS, which uses the gross method.
If they really want to use PSR, it should only be compared with Coupang. Even if we apply CPNG's current EV/Sales multiple (1.36x), it would only slightly exceed ₩0.5T.
A more logical way would be to use EV/GMV. Even in this case, it wouldn't be easy to expect a valuation higher than ₩0.5T.


OASIS IPO Pricing Is Not Even Worth Reviewing: Strongly Recommend Avoiding It

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Our base case valuation of Oasis Corp is EV of 605 billion won, implied market cap of 788 billion won, and target price of 24,847 won per share. </li>
<li>This is 18.5% lower than the low end of the IPO price range. Given the lack of upside, we have a Negative View of the Oasis Corp IPO.</li>
<li>The end of COVID pandemic and relaxed regulations for hypermarkets in early morning delivery services are likely to have greater negative impact on Oasis Corp. </li>
</ul>


Our base case valuation of Oasis Corp is EV of 605 billion won, implied market cap of 788 billion won, and target price of 24,847 won per share. 
This is 18.5% lower than the low end of the IPO price range. Given the lack of upside, we have a Negative View of the Oasis Corp IPO.
The end of COVID pandemic and relaxed regulations for hypermarkets in early morning delivery services are likely to have greater negative impact on Oasis Corp. 


<ul>
<li>Oasis Corp is getting ready to complete its IPO on KOSDAQ in February 2023. Oasis Corp is a leading online/offline provider of organic foods and other groceries in Korea.</li>
<li>IPO price range is from 30,500 won to 39,500 won, with a total offering amount of 160 billion won to 207 billion won. </li>
<li>Other than Coupang, the other three companies (bankers' valuation) may not be appropriate comps, mainly because they operate in different markets around the world and are much bigger in size.</li>
</ul>


Oasis Corp is getting ready to complete its IPO on KOSDAQ in February 2023. Oasis Corp is a leading online/offline provider of organic foods and other groceries in Korea.
IPO price range is from 30,500 won to 39,500 won, with a total offering amount of 160 billion won to 207 billion won. 
Other than Coupang, the other three companies (bankers' valuation) may not be appropriate comps, mainly because they operate in different markets around the world and are much bigger in size.


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Etsy reported a strong set of results that were beyond market expectations with a strong adjusted EBITDA margin and growth in revenue.</li><li>Also, it had some early incorporation of buyer interests and taste to create more personalized and predictable recommendations.</li><li>The company held Etsy Up: Holiday edition, its foremost global holiday kickoff event for sellers all over the world.</li></ul>

Etsy reported a strong set of results that were beyond market expectations with a strong adjusted EBITDA margin and growth in revenue.Also, it had some early incorporation of buyer interests and taste to create more personalized and predictable recommendations.The company held Etsy Up: Holiday edition, its foremost global holiday kickoff event for sellers all over the world.

Etsy Inc: New Image Search Feature & Other Developments

<ul><li>Etsy recently launched the Etsy Purchase Protection program where buyers will get a total refund for purchases they make on Etsy.com in cases that do not match the item description, never arrive, or arrive damaged.</li><li>This new program aims at making shopping on the website more worry-free.</li><li>The purchase Protection Program of Etsy will complement the company's brand efforts in improving customer support, maintaining integrity in its marketplace as a destination for special and unique items, and increasing trust signals over the user experience.</li></ul>

Etsy recently launched the Etsy Purchase Protection program where buyers will get a total refund for purchases they make on Etsy.com in cases that do not match the item description, never arrive, or arrive damaged.This new program aims at making shopping on the website more worry-free.The purchase Protection Program of Etsy will complement the company's brand efforts in improving customer support, maintaining integrity in its marketplace as a destination for special and unique items, and increasing trust signals over the user experience.

Etsy Inc: New Purchase Protection Feature & Other Developments

United States

Etsy, Inc. provides e-commerce services. The Company offers handmade and vintage items, art, and supplies, as well as regular items such as clothing, housewares, paper goods, candles, bags and purses, music, and wood working items. Etsy serves users throughout the United States.

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Etsy Inc (ETSY US)

Oasis Corp IPO Valuation Analysis

Our base case valuation of Oasis Corp is implied market cap of 788 billion won, and target price of 24,847 won per share, which is 18.5% lower than...

Douglas Kim

Oasis Corp IPO Preview

Oasis Corp is getting ready to complete its IPO on KOSDAQ in February 2023. Oasis Corp is a leading online/offline provider of organic foods and...

Douglas Kim

Etsy Inc: New Image Search Feature & Other Developments

Etsy reported a strong set of results that were beyond market expectations with a strong adjusted EBITDA margin and growth in revenue. Also, it...

Baptista Research

Etsy Inc: New Purchase Protection Feature & Other Developments

Etsy recently launched the Etsy Purchase Protection program where buyers will get a total refund for purchases they make on Etsy.com in cases that...

Baptista Research

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OASIS IPO Pricing Is Not Even Worth Reviewing: Strongly Recommend Avoiding It

This post explains why the pricing of the OASIS IPO presented by the company and the bankers is not even worth reviewing and why we should avoid...

Sanghyun Park

Oasis Corp IPO Valuation Analysis

Our base case valuation of Oasis Corp is implied market cap of 788 billion won, and target price of 24,847 won per share, which is 18.5% lower than...

Douglas Kim

Oasis Corp IPO Preview

Oasis Corp is getting ready to complete its IPO on KOSDAQ in February 2023. Oasis Corp is a leading online/offline provider of organic foods and...

Douglas Kim

Etsy Inc: New Image Search Feature & Other Developments

Etsy reported a strong set of results that were beyond market expectations with a strong adjusted EBITDA margin and growth in revenue. Also, it...

Baptista Research

Etsy Inc: New Purchase Protection Feature & Other Developments

Etsy recently launched the Etsy Purchase Protection program where buyers will get a total refund for purchases they make on Etsy.com in cases that...

Baptista Research