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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Equity Capital Markets

Sunic System Ltd. / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/24259" target="_blank" data-smartkarma-citation="entities:24259:1">Sunic System Ltd. (SUNICSZ KS)</a> officially submitted the IPO book yesterday. The indicative price band is ₩37,000 - ₩44,000, which is lower than the initial estimates, which I mentioned in my previous insight <a href="https://www.smartkarma.com/insights/sunic-system-ipo-preview-viable-alternative-to-canon-tokki-for-oled-production-system" target="_blank" data-smartkarma-citation="insights:12357">Sunic System IPO Preview - Viable Alternative to Canon Tokki for OLED Production System</a>. The bookrunner <a href="https://www.smartkarma.com/entities/10549" target="_blank" data-smartkarma-citation="entities:10549:1">Daishin Securities Co Ltd (003540 KS)</a> and the company might have felt that the market sentiments for OLED equipment stocks were cooling down a bit. At this price band, MC will be at ₩245.9bil - ₩292.5bil. The company will raise ₩69.4bil - ₩82.5bil.<div class="content-highlight">Who is Sunic System?Sunic System was founded in 1990 by a guy named Sohn Myeong-ho (SNU alumnus) with a couple of KAIST graduates (KAIST is generally regarded as Korea's top engineering school). This means Sunic's manpower in early phases was quite strong. In 1990s, the company focused on semicon deposition equipment and LED etching equipment. Since 2000 (about 10 years after the foundation), the company started focusing on the development of OLED display equipment. In early times, the company had several successes in overseas. For instance, in 2005, it supplied its OLED equipment to a couple of Chinese panel makers. Moreover, it also supplied its products to European makers such as Fraunhofer and Thomson. But in 2008 when it was developing Gen 4 OLED display, it ran out of capital. As a result, it was acquired by <a href="https://www.smartkarma.com/entities/7049" target="_blank" data-smartkarma-citation="entities:7049:1">Dong A Eltek Co Ltd (088130 KS)</a> for only ₩4.9bil in 2009. Dong A Eltek was founded by a guy named Park Jae-kyu (Park is also an engineer by training - has an electrical engineering degree). Park is now serving as a CEO of both Sunic and Dong A Eltek. Since 2010, both LG and Samsung started investing on Sunic.* Below is an excellent summary of the industry dynamics related to OLED display deposition equipment. I really recommend reading this. This is a only 5-minute reading. (Source: OLEDNET)<a href="http://www.olednet.com/en/oled-deposition-equipment-market-can-replace-canon-tokki/" target="_blank">http://www.olednet.com/en/oled-deposition-equipment-market-can-replace-canon-tokki/</a></div><div class="content-caption">(Sunic's vapor deposition equipment - Courtesy Sunic System)</div><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/031/444/original/Sunic%20Vapor%20Deposition%20Equipment.jpg?1502433693" class="editor-image img-responsive" data-smartkarma-image-id="31444"></figure><div class="content-caption">(Dong A Eltek and Sunic's CEO Park Jae-kyu - Courtesy Sunic System)</div><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/031/443/original/Dong%20A%20Eltek%20Chairman.jpg?1502433663" class="editor-image img-responsive" data-smartkarma-image-id="31443"></figure>In this insight, I will mainly summarize the important details of the IPO book submitted yesterday. For more detailed discussions on valuation and sales projection, I will provide them in another follow-up report.

Sunic System Ltd. (SUNICSZ KS) officially submitted the IPO book yesterday. The indicative price band is ₩37,000 - ₩44,000, which is lower than the initial estimates, which I mentioned in my previous insight Sunic System IPO Preview - Viable Alternative to Canon Tokki for OLED Production System. The bookrunner Daishin Securities Co Ltd (003540 KS) and the company might have felt that the market sentiments for OLED equipment stocks were cooling down a bit. At this price band, MC will be at ₩245.9bil - ₩292.5bil. The company will raise ₩69.4bil - ₩82.5bil.Who is Sunic System?Sunic System was founded in 1990 by a guy named Sohn Myeong-ho (SNU alumnus) with a couple of KAIST graduates (KAIST is generally regarded as Korea's top engineering school). This means Sunic's manpower in early phases was quite strong. In 1990s, the company focused on semicon deposition equipment and LED etching equipment. Since 2000 (about 10 years after the foundation), the company started focusing on the development of OLED display equipment. In early times, the company had several successes in overseas. For instance, in 2005, it supplied its OLED equipment to a couple of Chinese panel makers. Moreover, it also supplied its products to European makers such as Fraunhofer and Thomson. But in 2008 when it was developing Gen 4 OLED display, it ran out of capital. As a result, it was acquired by Dong A Eltek Co Ltd (088130 KS) for only ₩4.9bil in 2009. Dong A Eltek was founded by a guy named Park Jae-kyu (Park is also an engineer by training - has an electrical engineering degree). Park is now serving as a CEO of both Sunic and Dong A Eltek. Since 2010, both LG and Samsung started investing on Sunic.* Below is an excellent summary of the industry dynamics related to OLED display deposition equipment. I really recommend reading this. This is a only 5-minute reading. (Source: OLEDNET)http://www.olednet.com/en/oled-deposition-equipment-market-can-replace-canon-tokki/(Sunic's vapor deposition equipment - Courtesy Sunic System)(Dong A Eltek and Sunic's CEO Park Jae-kyu - Courtesy Sunic System)In this insight, I will mainly summarize the important details of the IPO book submitted yesterday. For more detailed discussions on valuation and sales projection, I will provide them in another follow-up report.

Sunic System IPO Part 1 - IPO Prospectus Summary

<a href="https://www.smartkarma.com/entities/24216" target="_blank" data-smartkarma-citation="entities:24216:1">HIMS Co., Ltd (238490 KS)</a> is very similar in many ways as <a href="https://www.smartkarma.com/entities/24202" target="_blank" data-smartkarma-citation="entities:24202:1">V-One Tech Co., Ltd (251630 KS)</a>. That is, like V-One Tech, HIMS is also specialized in machine vision for OLED production process. Just, HIMS' machine vision based OLED testing equipment monitors different areas of OLED panels. Already, we are hearing many positive reactions and responses from Korea's local institutions. First and foremost, everyone is kinda being excited by Korea's super OLED rally. Second, they are feeling HIMS' suggested IPO price (₩100bil market cap) is quite cheap. Third, Samsung's own investment arm called "Samsung Ventures - SVIC" is one of the company's early investors. SVIC is still holding 5% shares. Lastly, HIMS is turning profits.Alright, let's find out whether this IPO stock is really worth our attention.

HIMS Co., Ltd (238490 KS) is very similar in many ways as V-One Tech Co., Ltd (251630 KS). That is, like V-One Tech, HIMS is also specialized in machine vision for OLED production process. Just, HIMS' machine vision based OLED testing equipment monitors different areas of OLED panels. Already, we are hearing many positive reactions and responses from Korea's local institutions. First and foremost, everyone is kinda being excited by Korea's super OLED rally. Second, they are feeling HIMS' suggested IPO price (₩100bil market cap) is quite cheap. Third, Samsung's own investment arm called "Samsung Ventures - SVIC" is one of the company's early investors. SVIC is still holding 5% shares. Lastly, HIMS is turning profits.Alright, let's find out whether this IPO stock is really worth our attention.

HIMS IPO Summary - Another Solid OLED Stock IPO

South Korea

Jusung Engineering Co., Ltd. manufactures semiconductor, flat panel display, and solar cell production equipment.  The Company produces space divided CVD-ALD thin film machines for semiconductor manufacture; equipment for producing liquid crystal display panels; and equipment for manufacturing crystalline silicon and thin film silicon tandem solar cells.

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Jusung Engineering (036930 KS)

Sunic System IPO Part 1 - IPO Prospectus Summary

Sunic System Ltd. (SUNICSZ KS) officially submitted the IPO book yesterday. The indicative price band is ₩37,000 - ₩44,000, which is lower than the...

Sanghyun Park

HIMS IPO Summary - Another Solid OLED Stock IPO

HIMS Co., Ltd (238490 KS) is very similar in many ways as V-One Tech Co., Ltd (251630 KS). That is, like V-One Tech, HIMS is also specialized in...

Sanghyun Park

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