APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC 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.

Equity Capital Markets

HD Hyundai Marine Solution  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hd-hyundai-marine-solution-co" target="_blank" data-smartkarma-citation="entities:41002:1" rel="noopener">HD Hyundai Marine Solution (443060 KS)</a> is looking to raise up to US$555m in its Korean IPO.</li>
<li>HD Hyundai Marine Solution (HMS from hereon) is a ship aftermarket service provider that provides necessary services throughout a ship's life cycle after the delivery of a new ship.</li>
<li>In our previous note, we talked about the company’s historical performance. In this note, we talk about peer comparison.</li>
</ul>



HD Hyundai Marine Solution (443060 KS) is looking to raise up to US$555m in its Korean IPO.
HD Hyundai Marine Solution (HMS from hereon) is a ship aftermarket service provider that provides necessary services throughout a ship's life cycle after the delivery of a new ship.
In our previous note, we talked about the company’s historical performance. In this note, we talk about peer comparison.


HD Hyundai Marine Solution IPO - Peer Comparison - Not Particularly Exciting

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hd-hyundai-marine-solution-co" target="_blank" data-smartkarma-citation="entities:41002:1" rel="noopener">HD Hyundai Marine Solution (443060 KS)</a>, the ship after-service subsidiary of <a href="https://www.smartkarma.com/entities/hd-hyundai-co-ltd" target="_blank" data-smartkarma-citation="entities:24075:1" rel="noopener">HD Hyundai (267250 KS)</a>, aims to raise up to US$550 million.</li>
<li>We previously discussed the IPO in <strong><em><a href="https://www.smartkarma.com/insights/hd-hyundai-marine-solutions-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:135501" rel="noopener">HD Hyundai Marine Solutions IPO: The Investment Case</a></em></strong>. </li>
<li>We examine the syndicate's valuation methodology. Our analysis suggests that the HMS is, at best, fairly valued at the IPO price range. We would pass on the IPO.</li>
</ul>



HD Hyundai Marine Solution (443060 KS), the ship after-service subsidiary of HD Hyundai (267250 KS), aims to raise up to US$550 million.
We previously discussed the IPO in HD Hyundai Marine Solutions IPO: The Investment Case. 
We examine the syndicate's valuation methodology. Our analysis suggests that the HMS is, at best, fairly valued at the IPO price range. We would pass on the IPO.


HD Hyundai Marine Solutions IPO: Valuation Insights

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hd-hyundai-marine-solution-co" target="_blank" data-smartkarma-citation="entities:41002:1" rel="noopener">HD Hyundai Marine Solution (443060 KS)</a>, the ship after-service subsidiary of <a href="https://www.smartkarma.com/entities/hd-hyundai-co-ltd" target="_blank" data-smartkarma-citation="entities:24075:1" rel="noopener">HD Hyundai (267250 KS)</a>, aims to raise up to US$550 million.   </li>
<li>The international book-building will run from 8 to 22 April, while the domestic book will open from 16 to 22 April. Pricing will be announced on 24 April.</li>
<li>The investment case rests on solid top-line growth, a healthy order book, rising margins, cash generation, and modest leverage.</li>
</ul>



HD Hyundai Marine Solution (443060 KS), the ship after-service subsidiary of HD Hyundai (267250 KS), aims to raise up to US$550 million.   
The international book-building will run from 8 to 22 April, while the domestic book will open from 16 to 22 April. Pricing will be announced on 24 April.
The investment case rests on solid top-line growth, a healthy order book, rising margins, cash generation, and modest leverage.


HD Hyundai Marine Solutions IPO: The Investment Case

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.

<ul>
<li>Valuation controversy arises from comparing HD Hyundai Marine Solution, a ship AS specialist, with diverse global companies, leading to a target market cap of ₩5T.</li>
<li>HD KSOE's inclusion worsens the valuation controversy. Applying HD KSOE's last year PER without adjusting for a significant one-off profit seems to inflate HD Hyundai Marine Solution's PER.</li>
<li>Currently, major local IPO funds see HD Hyundai Marine's valuation nearing ₩4T as excessive, despite the industry's revival and potential growth in eco-friendly ship conversions, impacting the upcoming bookbuilding process.</li>
</ul>


Valuation controversy arises from comparing HD Hyundai Marine Solution, a ship AS specialist, with diverse global companies, leading to a target market cap of ₩5T.
HD KSOE's inclusion worsens the valuation controversy. Applying HD KSOE's last year PER without adjusting for a significant one-off profit seems to inflate HD Hyundai Marine Solution's PER.
Currently, major local IPO funds see HD Hyundai Marine's valuation nearing ₩4T as excessive, despite the industry's revival and potential growth in eco-friendly ship conversions, impacting the upcoming bookbuilding process.


Local Color on HD Hyundai Marine Solution's Excessive IPO Valuation

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Global equities (MSCI ACWI) have marginally broken above the top-end of our anticipated 2023 trading range of $93 on ACWI-US.</li>
<li>In our 4/18/23 Int’l MacroVision we acknowledged that a break above $93 and a reach to $96-$97 was also possible – and so far, this is what has played out.</li>
<li>We will continue to watch the $93 level for a potential false breakout, but as long as the ACWI-US is above $90.50, we cannot be bearish.</li>
</ul>


Global equities (MSCI ACWI) have marginally broken above the top-end of our anticipated 2023 trading range of $93 on ACWI-US.
In our 4/18/23 Int’l MacroVision we acknowledged that a break above $93 and a reach to $96-$97 was also possible – and so far, this is what has played out.
We will continue to watch the $93 level for a potential false breakout, but as long as the ACWI-US is above $90.50, we cannot be bearish.


MSCI EM Improving; Buys in Value & Large-Cap EM; Remain Overweight Japan, India, Taiwan, and Greece

Norway

Kongsberg Gruppen ASA develops, manufactures and markets high-technology aerospace and defense products, as well as systems for armed forces in Norway and other countries.  The Company produces anti-ship missiles, launchers, missile control systems, weapon control systems, and maritime and air traffic surveillance systems.

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Kongsberg Gruppen (KOG NO)

HD Hyundai Marine Solution IPO - Peer Comparison - Not Particularly Exciting

HD Hyundai Marine Solution (443060 KS) is looking to raise up to US$555m in its Korean IPO. In this note, we talk about peer comparison.

Ethan Aw

HD Hyundai Marine Solutions IPO: Valuation Insights

We examine the syndicate's valuation methodology. Our analysis suggests that the HMS is, at best, fairly valued at the IPO price range. We would...

Arun George

HD Hyundai Marine Solutions IPO: The Investment Case

The investment case rests on solid top-line growth, a healthy order book, rising margins, cash generation, and modest leverage.

Arun George

Local Color on HD Hyundai Marine Solution's Excessive IPO Valuation

This post conveys the sentiment among local IPO fund managers regarding the excessive valuation of the HD Hyundai Marine Solution IPO.

Sanghyun Park

MSCI EM Improving; Buys in Value & Large-Cap EM; Remain Overweight Japan, India, Taiwan, and Greece

MSCI EM Improving; Buys in Value & Large-Cap EM $TSM #Samsung $BABA; Remain Overweight Japan, India, Taiwan, and Greece. $ACWI break above $93 and...

Vermilion Research

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