Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On 20 January, SM Entertainment announced that Lee Chang-Hwan, the CEO of Align Partners Capital will join the company as a board member. </li>
<li>This will mark one of the first cases of an activist investor becoming a board member of a Korean company which already has a major shareholder.</li>
<li>We believe that Lee Chang-Hwan (CEO of APCM) joining SM Entertainment as a board member will have a positive impact on the company to meaningfully improve its corporate governance.</li>
</ul>


On 20 January, SM Entertainment announced that Lee Chang-Hwan, the CEO of Align Partners Capital will join the company as a board member. 
This will mark one of the first cases of an activist investor becoming a board member of a Korean company which already has a major shareholder.
We believe that Lee Chang-Hwan (CEO of APCM) joining SM Entertainment as a board member will have a positive impact on the company to meaningfully improve its corporate governance.


Align Partners' Lee Chang-Hwan Joins SM Entertainment as a Board Member

Event-Driven

<ul>
<li>DearU's acquisition of NCSoft's Universe K-Pop fandom platform will expand DearU Bubble's number one position in the K-Pop fandom platform in Korea.</li>
<li>The sale of Universe by NCSoft is a win-win situation for both DearU and NCsoft.</li>
<li>Applying a 25x P/E to an estimated net profit of 50 billion won in 2024 would suggest an market cap of 1.25 trillion won for DearU, representing a 52% upside. </li>
</ul>


DearU's acquisition of NCSoft's Universe K-Pop fandom platform will expand DearU Bubble's number one position in the K-Pop fandom platform in Korea.
The sale of Universe by NCSoft is a win-win situation for both DearU and NCsoft.
Applying a 25x P/E to an estimated net profit of 50 billion won in 2024 would suggest an market cap of 1.25 trillion won for DearU, representing a 52% upside. 


DearU' Bubble + NCsoft's Universe = The Largest K-Pop Fandom Platform in Korea

<ul>
<li>On 11 January, it was announced that Kakao Entertainment (103260 KS) has attracted large scale investments from Saudi Arabia's Sovereign Fund (Public Investment Fund - PIF) and GIC (Singapore).</li>
<li>Maekyung Business Daily reported that PIF and GIC combined invested about 1.1 trillion won to 1.2 trillion won in Kakao Entertainment, valuing the company at about 10 trillion won.</li>
<li>This major investment in Kakao Entertainment by PIF and GIC should have a positive impact on Kakao Corp (035720 KS), the controlling shareholder of the company.</li>
</ul>


On 11 January, it was announced that Kakao Entertainment (103260 KS) has attracted large scale investments from Saudi Arabia's Sovereign Fund (Public Investment Fund - PIF) and GIC (Singapore).
Maekyung Business Daily reported that PIF and GIC combined invested about 1.1 trillion won to 1.2 trillion won in Kakao Entertainment, valuing the company at about 10 trillion won.
This major investment in Kakao Entertainment by PIF and GIC should have a positive impact on Kakao Corp (035720 KS), the controlling shareholder of the company.


PIF and GIC Combined Invest About 1.2 Trillion Won in Kakao Entertainment

<ul>
<li>This past week, I had a discussion with Changhwan Lee, the founder and CEO of Align Partners which is currently an activist investor on S.M.Entertainment Co (041510 KS).</li>
<li>This insight provides the details of why Align Partners is going activist on SM Entertainment. </li>
<li>Through more successful proxy fights such as SM Entertainment, there could be greater value that could be unlocked from many listed companies in Korea with poor corporate governance. </li>
</ul>


This past week, I had a discussion with Changhwan Lee, the founder and CEO of Align Partners which is currently an activist investor on S.M.Entertainment Co (041510 KS).
This insight provides the details of why Align Partners is going activist on SM Entertainment. 
Through more successful proxy fights such as SM Entertainment, there could be greater value that could be unlocked from many listed companies in Korea with poor corporate governance. 


A Discussion with Align Partners' CEO on SM Entertainment

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<p>In our next Webinar, we welcome Analyst <a href="https://www.smartkarma.com/profiles/soo-young-kim" target="_blank" data-smartkarma-citation="accounts:20882" rel="noopener">Soo Young Kim</a> , who will take us through the ESG risks present in South Korea and her analysis based on negative ESG incidents. </p>
<h3>The webinar will be hosted on Wednesday, 21 September 2022, 17:00 SGT/HKT.</h3>
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<h2><a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=82945135980" target="_blank" rel="noopener">Register for the Webinar here</a></h2>
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<p>Soo Young is the Head of ESG Intelligence at <a href="https://www.smartkarma.com/companies/who-s-good" target="_blank" rel="noopener">Who’s Good</a>, Asia's first AI-driven ESG Insight Provider. Using AI technologies and public data, Who’s Good provides objective and up-to-date corporate ESG insights on Asian companies.</p>

In our next Webinar, we welcome Analyst Soo Young Kim , who will take us through the ESG risks present in South Korea and her analysis based on negative ESG incidents. 
The webinar will be hosted on Wednesday, 21 September 2022, 17:00 SGT/HKT.



Register for the Webinar here



Soo Young is the Head of ESG Intelligence at Who’s Good, Asia's first AI-driven ESG Insight Provider. Using AI technologies and public data, Who’s Good provides objective and up-to-date corporate ESG insights on Asian companies.

South Korea

JYP Entertainment Corp plans, produces, promotes, and markets Korean singers both in Korean and overseas market. The Company's also engages in licensing, merchandizing, and artist management business including the commercial flim contracts of the artists.

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Jyp Entertainment (035900 KS)

Align Partners' Lee Chang-Hwan Joins SM Entertainment as a Board Member

We believe that Lee Chang-Hwan (CEO of APCM) joining SM Entertainment as a board member will have a positive impact on the company to meaningfully...

Douglas Kim

DearU' Bubble + NCsoft's Universe = The Largest K-Pop Fandom Platform in Korea

DearU's acquisition of NCSoft's Universe K-Pop fandom platform will expand DearU Bubble's number one position in the K-Pop fandom platform in Korea.

Douglas Kim

PIF and GIC Combined Invest About 1.2 Trillion Won in Kakao Entertainment

Maekyung Business Daily reported on 11 January that PIF (Saudi Arabia) and GIC combined invested about 1.2 trillion won in Kakao Entertainment,...

Douglas Kim

A Discussion with Align Partners' CEO on SM Entertainment

This past week, I had a discussion with Changhwan Lee, the founder and CEO of Align Partners which is currently an activist investor on...

Douglas Kim

Smartkarma Webinar | ESG Risks in Korea

In our latest Webinar, Smartkarma Analyst Soo Young Kim will take us through the ESG risks present in South Korea and her analysis based on...

Smartkarma Research

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