Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 16 April, Megastudyedu Co, Ltd. (215200 KS) announced a major shareholder return plan, driving up its share price by 14.2% to 60,400 won. </li>
<li>Driven by this attractive shareholder return plan combined with improving fundamentals, we believe that Megastudy Education's shares could continue to outperform the market in the next several months. </li>
<li>The total shareholder returns including share buybacks/cancellation and dividends are 60% of the company's non-consolidated net profit from 2024 to 2026.</li>
</ul>


On 16 April, Megastudyedu Co, Ltd. (215200 KS) announced a major shareholder return plan, driving up its share price by 14.2% to 60,400 won. 
Driven by this attractive shareholder return plan combined with improving fundamentals, we believe that Megastudy Education's shares could continue to outperform the market in the next several months. 
The total shareholder returns including share buybacks/cancellation and dividends are 60% of the company's non-consolidated net profit from 2024 to 2026.


Megastudy Education: A Major Shareholder Return Policy in 2024-2026

Cross Asset Strategy

<ul>
<li>There are some major surprises (both inclusions and exclusions) in the Korea Value Up index. </li>
<li>In particular, the telecom sector (SK Telecom and KT) and large cap holding companies (Samsung C&amp;T and LG Corp) are surprising exclusions in the index.</li>
<li>There are many surprising inclusions in the Korea Value Up Index. We provide 30 companies are surprising inclusions in the Korea Value Up Index (19 KOSDAQ and 11 KOSPI listed).</li>
</ul>


There are some major surprises (both inclusions and exclusions) in the Korea Value Up index. 
In particular, the telecom sector (SK Telecom and KT) and large cap holding companies (Samsung C&amp;T and LG Corp) are surprising exclusions in the index.
There are many surprising inclusions in the Korea Value Up Index. We provide 30 companies are surprising inclusions in the Korea Value Up Index (19 KOSDAQ and 11 KOSPI listed).


Korea Value Up Index - Surprising Inclusions and Exclusions

Equity Capital Markets

<ul>
<li>I-Scream Media reported its IPO book building results. The IPO price has been determined at 32,000 won, which is at the low end of the IPO price range.</li>
<li>A total of 561 institutional investors participated in the IPO survey. The final demand ratio was 31.3 to 1.</li>
<li>Our valuation analysis suggests an implied price per share of 41,450 won, which represent a 29.5% upside from the IPO price.</li>
</ul>


I-Scream Media reported its IPO book building results. The IPO price has been determined at 32,000 won, which is at the low end of the IPO price range.
A total of 561 institutional investors participated in the IPO survey. The final demand ratio was 31.3 to 1.
Our valuation analysis suggests an implied price per share of 41,450 won, which represent a 29.5% upside from the IPO price.


I-Scream Media IPO Book Building Results Analysis

<ul>
<li>Our valuation analysis suggests a base case implied market cap of 567 billion won or implied price per share of 41,450 won.</li>
<li>This suggests a 3% upside to the high end of the IPO price range. We would not subscribe to this IPO due to lack of upside.</li>
<li>Our base case valuation is based on P/E of 18.8x using the company's net profit of 30.2 billion won in 2023.</li>
</ul>


Our valuation analysis suggests a base case implied market cap of 567 billion won or implied price per share of 41,450 won.
This suggests a 3% upside to the high end of the IPO price range. We would not subscribe to this IPO due to lack of upside.
Our base case valuation is based on P/E of 18.8x using the company's net profit of 30.2 billion won in 2023.


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>The reshuffle results align with expectations, but the decision to list 11 KOSDAQ Global stocks in April is surprising. Local authorities seem to prioritize boosting the derivatives market for liquidity.</li>
<li>Ecopro Materials' SSF listing, earlier than expected, attracts attention, potentially leading to an unusual basis pattern, coinciding with a major lockup release on May 17th.</li>
<li>We should also be wary of a pattern akin to last July's in KOSDAQ stocks. Spot prices of recent SSFs showed a pronounced short-term uptrend, especially in KOSDAQ, versus KOSPI.</li>
</ul>


The reshuffle results align with expectations, but the decision to list 11 KOSDAQ Global stocks in April is surprising. Local authorities seem to prioritize boosting the derivatives market for liquidity.
Ecopro Materials' SSF listing, earlier than expected, attracts attention, potentially leading to an unusual basis pattern, coinciding with a major lockup release on May 17th.
We should also be wary of a pattern akin to last July's in KOSDAQ stocks. Spot prices of recent SSFs showed a pronounced short-term uptrend, especially in KOSDAQ, versus KOSPI.


KRX's Official SSF/SSO Reshuffle Results: Trading Considerations

South Korea

MegaStudyEdu Co., Ltd. offers online and offline educational programs to middle and high school students.  The Company provides college entrance test preparatory courses, e-learning, and college admission advisory services.

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Megastudyedu Co, Ltd. (215200 KS)

Megastudy Education: A Major Shareholder Return Policy in 2024-2026

Megastudy Education announced a major shareholder return plan which includes share buybacks/cancellation and dividends are 60% of the company's non...

Douglas Kim

Korea Value Up Index - Surprising Inclusions and Exclusions

There are many surprising inclusions and exclusions in the Korea Value Up Index. We provide 30 companies that are surprising inclusions and 10...

Douglas Kim

I-Scream Media IPO Book Building Results Analysis

I-Scream Media reported its IPO book building results. The IPO price has been determined at 32,000 won, which is at the low end of the IPO price...

Douglas Kim

I-Scream Media IPO Valuation Analysis

Our base case valuation of I Scream Media is target price of 41,450 won which suggests a 3% upside to the high end of the IPO price range. We would...

Douglas Kim

KRX's Official SSF/SSO Reshuffle Results: Trading Considerations

As pointed out in this post, considering KOSDAQ additions as a long basket is suitable. However, stocks with high pre-reshuffle price appreciation...

Sanghyun Park

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