Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<p><strong>Internet of Things will change the world.</strong> This is Part 1, focusing on the patent leaders in the Internet of Things in Korea.</p><p><strong>Why focus on Internet of Things in Korea?</strong> Korea is one of the most technologically advanced countries in the world, especially in Internet and technology. Our aim is to conduct a deep-dive, bottom-up analysis of the IoT sector in Korea so that it could help the investors to realize the sales and earnings contribution potential of the IoT business to the Korean companies’ top-line and bottom growth.</p><p><strong>Who are the patent leaders of IoT in Korea? </strong>Some of the leaders in the IoT sector have tried to enlarge the competitive barriers by their patents. In fact, a few of the Korean companies are global leaders in claiming the most number of patents in the IoT. We believe that reviewing the major leaders of the patent leaders of the IoT is one of the first steps towards figuring out who could be the major beneficiaries of the growth of IoT in Korea. Three companies in Korea particular, including <strong>LG Electronics</strong>, <strong>Samsung Electronics,</strong> and <strong>KT Corp</strong> currently stand out in Korea as having the most number of patents related to IoT. LG Electronics has the largest number of IoT related patents in Korea and among the top five globally. LG Electronics owned 139 IoT patents as of 2014.</p>

Internet of Things will change the world. This is Part 1, focusing on the patent leaders in the Internet of Things in Korea.Why focus on Internet of Things in Korea? Korea is one of the most technologically advanced countries in the world, especially in Internet and technology. Our aim is to conduct a deep-dive, bottom-up analysis of the IoT sector in Korea so that it could help the investors to realize the sales and earnings contribution potential of the IoT business to the Korean companies’ top-line and bottom growth.Who are the patent leaders of IoT in Korea? Some of the leaders in the IoT sector have tried to enlarge the competitive barriers by their patents. In fact, a few of the Korean companies are global leaders in claiming the most number of patents in the IoT. We believe that reviewing the major leaders of the patent leaders of the IoT is one of the first steps towards figuring out who could be the major beneficiaries of the growth of IoT in Korea. Three companies in Korea particular, including LG Electronics, Samsung Electronics, and KT Corp currently stand out in Korea as having the most number of patents related to IoT. LG Electronics has the largest number of IoT related patents in Korea and among the top five globally. LG Electronics owned 139 IoT patents as of 2014.

Internet of Things Will Change the World (Part 1) - Korea; Patent Leaders

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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Equity Bottom-Up

<p>Did Kakao (035720) overpay for Loen (016170)? Probably Yes. However, is this really a surprise? Clearly No. What I am trying to say is that this is not a matter of whether Kakao overpaid or not. <strong>The truly important thing is that Kakao desperately needs Loen for whatever price it is.</strong> It is now very clear that Kakao Chairman Kim Beom-su needs to be a down-to-earth person again, particularly at this crucial moment when the combined company of Kakao and Daum is still struggling to meet high…</p>

Did Kakao (035720) overpay for Loen (016170)? Probably Yes. However, is this really a surprise? Clearly No. What I am trying to say is that this is not a matter of whether Kakao overpaid or not. The truly important thing is that Kakao desperately needs Loen for whatever price it is. It is now very clear that Kakao Chairman Kim Beom-su needs to be a down-to-earth person again, particularly at this crucial moment when the combined company of Kakao and Daum is still struggling to meet high…

Kakao (035720), Why Loen (016170)? Overpay?

<ul>
<li>In this insight, we discuss the top six stocks in Korea which could be the biggest movers due to the 2022 FIFA World Cup. </li>
<li>Due to the large impact of the World Cup this year, these six stocks could potentially outperform the market leading into the FIFA World Cup.</li>
<li>Among these six stocks, we particularly like AfreecaTV, HiteJinro, and BGF Retail in the next six months. </li>
</ul>


In this insight, we discuss the top six stocks in Korea which could be the biggest movers due to the 2022 FIFA World Cup. 
Due to the large impact of the World Cup this year, these six stocks could potentially outperform the market leading into the FIFA World Cup.
Among these six stocks, we particularly like AfreecaTV, HiteJinro, and BGF Retail in the next six months. 


2022 FIFA World Cup in Qatar: Top 6 Potential Winners in the Korean Stock Market

Clepsydra Capital

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

Event-Driven

<h2>3 key points of the first earnings release</h2><hr><p><strong>Point 1: Kakao Bank recorded ₩116B in net profit in the first half, surpassing last year's annual performance just in half a year.</strong></p><div class="content-highlight"><p>This is an increase of 156.2% from the first half of last year. Net profit for the second quarter was ₩69B, up 158.7% from the second quarter of last year.</p></div><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/268/original/Screen+Shot+2021-08-17+at+3.15.33+AM.png?1629184549" class="editor-image img-responsive" data-smartkarma-image-id="224268"></figure></section><hr>
<p><strong>Point 2: As for Kakao Bank's platform sector growth, stock account opening application services and loans linked to non-banking financial companies (NBFCs) increased by 43% and 51%, respectively, from the end of the previous year.</strong></p>
<div class="content-highlight"><p>This platform sector performance is crucial in determining the possibility of Kakao Bank taking a healthier growth path. And it seems to have robust growth in this area.</p></div>
<section class="figure"><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/295/original/Screen+Shot+2021-08-17+at+4.25.41+AM.png?1629188760" class="editor-image img-responsive" data-smartkarma-image-id="224295"></figure></section></section></section><hr>
<p><strong>Point 3: As of the end of June, Kakao Bank users stood at 16.71 million, an increase of 1.27 million from the end of last year.</strong></p>
<div class="content-highlight">
<p>The increase in new customers of Kakao Bank this year was led by people in their 40s and older. Since launching the service, the percentage of accumulated customers in their 20s and 30s was 54%, but 48% of new customers in the first half of this year are in their 40s and 50s.</p>
<p>This is a very positive signal for Kakao Bank, which tries to convert its flagship product from a low-yielding personal credit loan to a high-yield product, a mortgage loan.</p>
</div>
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/286/original/Screen+Shot+2021-08-17+at+3.40.11+AM.png?1629186027" class="editor-image img-responsive" data-smartkarma-image-id="224286"></figure></section></section>

3 key points of the first earnings releasePoint 1: Kakao Bank recorded ₩116B in net profit in the first half, surpassing last year's annual performance just in half a year.This is an increase of 156.2% from the first half of last year. Net profit for the second quarter was ₩69B, up 158.7% from the second quarter of last year.
Point 2: As for Kakao Bank's platform sector growth, stock account opening application services and loans linked to non-banking financial companies (NBFCs) increased by 43% and 51%, respectively, from the end of the previous year.
This platform sector performance is crucial in determining the possibility of Kakao Bank taking a healthier growth path. And it seems to have robust growth in this area.

Point 3: As of the end of June, Kakao Bank users stood at 16.71 million, an increase of 1.27 million from the end of last year.

The increase in new customers of Kakao Bank this year was led by people in their 40s and older. Since launching the service, the percentage of accumulated customers in their 20s and 30s was 54%, but 48% of new customers in the first half of this year are in their 40s and 50s.
This is a very positive signal for Kakao Bank, which tries to convert its flagship product from a low-yielding personal credit loan to a high-yield product, a mortgage loan.



Local Retail-Led Momentum Trading Today, Preemptively Reflecting Kakao Bank's Earnings Release

South Korea

Kakao Corp. provides Internet portal services such as news, free e-mail, and leisure information.  The Company also offers cross-platform mobile messaging application that allows users to exchange messages.

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Kakao Corp (035720 KS)

Internet of Things Will Change the World (Part 1) - Korea; Patent Leaders

Internet of Things will change the world. This is Part 1, focusing on the patent leaders in the Internet of Things in Korea.Why focus on Internet...

Douglas Kim

Kakao (035720), Why Loen (016170)? Overpay?

Did Kakao (035720) overpay for Loen (016170)? Probably Yes. However, is this really a surprise? Clearly No. What I am trying to say is that this is...

Sanghyun Park

2022 FIFA World Cup in Qatar: Top 6 Potential Winners in the Korean Stock Market

In this insight, we discuss the top six stocks in Korea which could be the biggest movers due to the 2022 FIFA World Cup.

Douglas Kim

Local Retail-Led Momentum Trading Today, Preemptively Reflecting Kakao Bank's Earnings Release

This post summarizes the three key points of Kakao Bank's first earnings release today. It then discusses today's price movement and what we should...

Sanghyun Park

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