Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Hyundai Oilbank Co Ltd / Equity Capital Markets

<ul>
<li>Hyundai Oilbank is getting ready to complete its IPO as early as June 2022, which would make it one of the largest IPOs in Korea this year.</li>
<li>Local media have mentioned that the value of Hyundai Oilbank could be as high as 10 trillion won post IPO. </li>
<li>Our NAV analysis suggests a base case valuation of 69,231 won per share for HD Hyundai (formerly Hyundai Heavy Industries Holdings), representing a 21% upside from current levels. </li>
</ul>


Hyundai Oilbank is getting ready to complete its IPO as early as June 2022, which would make it one of the largest IPOs in Korea this year.
Local media have mentioned that the value of Hyundai Oilbank could be as high as 10 trillion won post IPO. 
Our NAV analysis suggests a base case valuation of 69,231 won per share for HD Hyundai (formerly Hyundai Heavy Industries Holdings), representing a 21% upside from current levels. 


Hyundai Oilbank: Getting Ready for an IPO as Early as June 2022

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yangzijiang-shipbuilding-holdings-limited" target="_blank" data-smartkarma-citation="entities:660:1" rel="noopener">Yangzijiang Shipbuilding (YZJSGD SP)</a> aims to spin off Yangzijiang Financial Holdings (YZJFH) through a dividend-in-specie of all the issued YZJFH shares to shareholders on a one-on-one basis.</li>
<li>YZJFH shares will be listed on the SGX-ST by way of an introduction. The EGM to approve the spin-off will be held on 18 April at 4 pm.</li>
<li>This transaction will unlock value. Our SoTP valuation is S$1.94 per share, which is a 22% upside to the last close price of S$1.59 per share.</li>
</ul>



Yangzijiang Shipbuilding (YZJSGD SP) aims to spin off Yangzijiang Financial Holdings (YZJFH) through a dividend-in-specie of all the issued YZJFH shares to shareholders on a one-on-one basis.
YZJFH shares will be listed on the SGX-ST by way of an introduction. The EGM to approve the spin-off will be held on 18 April at 4 pm.
This transaction will unlock value. Our SoTP valuation is S$1.94 per share, which is a 22% upside to the last close price of S$1.59 per share.


Yangzijiang: Proposed Spin-Off of YZJFH to Unlock Value

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.

HD Hyundai Heavy Industries  / Equity Capital Markets

<ul>
<li>Hyundai Heavy Industries (HHI) was listed on Korea Exchange on 17th September, 2021. Its six month IPO lock-up will expire on 17th March, 2022.</li>
<li>Hyundai Heavy Industries (HHI) is a South Korean shipbuilder. The company is majority owned by Korea Shipbuilding &amp; Offshore Engineering (009540 KS) after the latter’s spin-off in 2019.</li>
<li>In this note, we will talk about the upcoming lock-up expiry, along with recent updates.</li>
</ul>


Hyundai Heavy Industries (HHI) was listed on Korea Exchange on 17th September, 2021. Its six month IPO lock-up will expire on 17th March, 2022.
Hyundai Heavy Industries (HHI) is a South Korean shipbuilder. The company is majority owned by Korea Shipbuilding &amp; Offshore Engineering (009540 KS) after the latter’s spin-off in 2019.
In this note, we will talk about the upcoming lock-up expiry, along with recent updates.


Hyundai Heavy IPO Lock-Up - Last of the Insti Lock-Ups, Parent’s Shares Out of Lock-Up as Well

HD Hyundai Heavy Industries  / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hyundai-heavy-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:33808:1" rel="noopener">Hyundai Heavy Industries (329180 KS)</a> (HHI) was listed on Korea Exchange on 17th September, 2021. Its three month IPO lock-up will expire on 17th December, 2021. </li>
<li>HHI is a South Korean shipbuilder. The company is wholly owned by <a href="https://www.smartkarma.com/entities/korea-shipbuilding-offshore-engineering-co-ltd" target="_blank" data-smartkarma-citation="entities:10155:1" rel="noopener">Korea Shipbuilding &amp; Offshore Engineering (009540 KS)</a> after the latter’s spin-off in 2019. </li>
<li>Locked-Up investors are still sitting on about 58% return over the three-month period, we think there will be some selling.</li>
</ul>



Hyundai Heavy Industries (329180 KS) (HHI) was listed on Korea Exchange on 17th September, 2021. Its three month IPO lock-up will expire on 17th December, 2021. 
HHI is a South Korean shipbuilder. The company is wholly owned by Korea Shipbuilding &amp; Offshore Engineering (009540 KS) after the latter’s spin-off in 2019. 
Locked-Up investors are still sitting on about 58% return over the three-month period, we think there will be some selling.


Hyundai Heavy IPO Lock-Up Expiry - Most Number of Shares Unlocked at Three-Month Mark

<ul>
<li>In the past week, Posco (005490 KS) announced that it will form a holding company structure through a physical spin-off (물적분할). </li>
<li>Many minority shareholders are opposing this move since they believe that this structure could result in the company eventually listing POSCO (steel company) and their stakes could be diluted.</li>
<li>Shareholders will finally vote on this new organizational structure on 28 January 2022. Many minority shareholders are opposing on this new deal. The final vote will likely remain very close. </li>
</ul>


In the past week, Posco (005490 KS) announced that it will form a holding company structure through a physical spin-off (물적분할). 
Many minority shareholders are opposing this move since they believe that this structure could result in the company eventually listing POSCO (steel company) and their stakes could be diluted.
Shareholders will finally vote on this new organizational structure on 28 January 2022. Many minority shareholders are opposing on this new deal. The final vote will likely remain very close. 


POSCO's Physical Spin-Off to Form POSCO Holdings: Opposed by Many Minority Shareholders

South Korea

Samsung Heavy Industries Co., Ltd. manufactures crude oil tankers, container vessels, bulk carriers, cruisers, and passenger ferries.  The Company also produces steel and bridge structures, and material handling equipment.  In addition, Samsung Heavy Industries provides civil engineering, architectural, and plant construction services.

Hanwha Ocean Co., Ltd. operates as a shipbuilding and offshore company. The Company provides floating structure construction, steel wire drying, commercial vessels, specialty vessels, gas carrier, tanker, containership, ro ro, bulk carrier, submarine, warship, auxiliaries, cruise ships, and ferries manufacturing services. Hanwha Ocean also offers onshore plants services.

Hyundai Rotem Company Ltd. manufactures railroad equipment and defense vehicles. The Company produces high-speed trains, light rail vehicles, locomotives, and passenger coaches, main battle tanks, armored recovery vehicles, and related defense equipment. Hyundai Rotem operates worldwide.

Hyundai Mipo Dockyard Co., Ltd. is shipbuilders in the sectors of medium-sized conventional ships and specialized vessels. The Company constructs and delivers medium-ranged product carriers, chemical tankers, containerships, LPG carriers, pure car truck carriers and others.

Bobcat Company specializes in design, manufacture, marketing and distribution of compact equipment for construction, rental, landscaping, agriculture, grounds maintenance, government, utility, industry and mining.

Hyundai Elevator Co., Ltd. (HELCO) manufactures, installs, sells, and services elevators, escalators, moving walkways, automated parking systems, and material handling systems.  The Company also produces screen doors used on platforms in train stations.

HSD Engine Co., Ltd. is an integrated engine manufacturer specializing in producing diesel engine for large vessels. The Company provides business in diesel power plant construction and operation, engine parts sales, and engine maintenance and repair services.

People and Technology INC is a company manufacturing in Secondary Battery and Semiconductors.

STX Heavy Industries Co., Ltd. manufactures diesel engine components for ships. The Company's products include crank shafts, cylinder liners, turbo chargers, and cargo pumps.

Sejin Heavy Industries Co. Ltd., operates a shipbuilding firm.  The Company manufactures ship components such as Deck House and Liquified Petroleum Gas (LPG) Tank.

Sejin Heavy Industries Co Ltd (075580 KS)

XCMG Construction Machinery Co., Ltd. manufactures and markets a variety of construction machinery including road construction machinery, scrapers, concrete mixers and other related products.

XCMG Construction Machinery A (000425 CH)

Yangzijiang Shipbuilding (Holdings) Limited builds a wide range of ships. The Company produces a wide range of commercial vessels, mini bulk carriers, multi-purpose cargo vessels, containerships, chemical tankers, offshore supply vessels, rescue and salvage vessels, and lifting vessels.

Donaldson Company, Inc. manufactures filtration systems and replacement parts. The Company's products include filters and emission control products for heavy duty mobile equipment, in-plant air cleaning systems, air intake systems for industrial gas turbines, and specialized filters for computer disk drives, aircraft cabins, and semiconductors. Donaldson operates around the world.

AGCO Corporation manufactures and distributes agricultural equipment throughout the world.  The Company sells a range of agricultural equipment and related replacement parts, including tractors, combines, hay tools, sprayers, and forage equipment.  AGCO markets its products under a variety of brand names, including Massey Ferguson, AGCO, Tye, GLEANER, and Hesston.

Thermax Ltd manufactures equipment and machinery used to both produce and to conserve energy. The Company operates through a number of divisions, including Boilers, Heat Recovery Steam Generators, Water Treatment Plants and Air Pollution Control Equipment. In addition, Thermax  produces steam and gas turbines and diesel gensets through a number of strategic alliances.

EBARA CORPORATION manufactures pneumatic and hydraulic pumps and related equipment.  The Company's products include fuel, oil, water, and firefighting pumps, as well as steam turbines and boilers.  Ebara Corporation also engineers garbage incinerators, smoke desulfurizers, and other products related to environmental technology.

Minebea Mitsumi manufactures and markets miniature and instrument ball bearings.  The Company also makes DC motors, servo motors, stepping motors, spindle motors, pivot assemblies, rod-end and spherical bearings, fasteners, and computer keyboards. Minebea Mitsumi has production facilities in Thailand and Singapore.

Watts Water Technologies, Inc. designs, manufactures, and sells a line of products to the water regulation and control markets.  The Company has manufacturing plants and distribution channels in the United States, Canada, and Europe, as well as a joint venture in The People's Republic of China.

Chart Industries, Inc. is a global manufacturer of equipment used in the production, storage, and end-use of hydrocarbon and industrial gases. The Company's products include vacuum-insulated containment vessels, heat exchangers, cold boxes, and other cryogenic components.

RBC Bearings Incorporated designs, manufactures, and markets bearing products. The Company offers precision plain, roller, cam followers, couplings, collars, locking, tool holders, shafts, pins, rods, tubes, and ball bearings. RBC Bearings serves industrial, aerospace, and defense markets worldwide.

HD Korea Shipbuilding & Offshore Engineering Co., Ltd. operates as a shipbuilding and offshore company. The Company provides industrial plant engineering, special and naval shipbuilding, marine engine and machinery, industrial machinery and energy services. HD Korea Shipbuilding & Offshore Engineering markets its products worldwide.

HD Korea Shipbuilding & Offshore Engineering (009540 KS)

HD Korea Shipbuilding & Offshore Engineering

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HD Korea Shipbuilding & Offshore Engineering (009540 KS)

Hyundai Oilbank: Getting Ready for an IPO as Early as June 2022

Hyundai Oilbank is getting ready to complete its IPO as early as June 2022, which would make it one of the largest IPOs in Korea this year.

Douglas Kim

Yangzijiang: Proposed Spin-Off of YZJFH to Unlock Value

The EGM to approve the spin-off of YZJFH will be held on 18 April at 4 pm. This transaction will unlock value. Our SoTP valuation is S$1.94 per...

Arun George

Hyundai Heavy IPO Lock-Up - Last of the Insti Lock-Ups, Parent’s Shares Out of Lock-Up as Well

Hyundai Heavy Industries (HHI) was listed on Korea Exchange on 17th September, 2021. Its six month IPO lock-up will expire on 17th March, 2022.

Sumeet Singh

Hyundai Heavy IPO Lock-Up Expiry - Most Number of Shares Unlocked at Three-Month Mark

Hyundai Heavy Industries (329180 KS) was listed on Korea Exchange on 17th September, 2021. Its three month IPO lock-up will expire on 17th...

Sumeet Singh

POSCO's Physical Spin-Off to Form POSCO Holdings: Opposed by Many Minority Shareholders

Overall, we believe that POSCO's shares could be negatively pressured by this decision on the company to form a physical spin-off of the company.

Douglas Kim

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