Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

We like the Tapex IPO and recommend investors to take the deal. The company has a solid niche in the rechargeable battery, semiconductor, and F&amp;B purpose tapes in Korea. The company has a long-term goal to generate 500 billion won in revenue by 2025, up from 113 billion won in 2015. We believe that the company could generate 129.7 billion won in revenue with a 7.6% net margins resulting in a net profit of 9.8 billion won in 2018.If we apply a 15x P/E, which is nearly 20% discount to where its…

We like the Tapex IPO and recommend investors to take the deal. The company has a solid niche in the rechargeable battery, semiconductor, and F&amp;B purpose tapes in Korea. The company has a long-term goal to generate 500 billion won in revenue by 2025, up from 113 billion won in 2015. We believe that the company could generate 129.7 billion won in revenue with a 7.6% net margins resulting in a net profit of 9.8 billion won in 2018.If we apply a 15x P/E, which is nearly 20% discount to where its…

Tapex IPO (Valuation Analysis) - A Market Leader in Rechargeable Batteries Tapes

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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Thematic (Sector/Industry)

Last month, foreign investors went on a buying spree in the Korea's second largest stock market, KOSDAQ. In contrast, they went on a selling spree in the Korea's largest stock market, KOSPI during the same period. This is very interesting since these foreign investors seem to be thinking that NPS initiated passive investing paradigm might have come to an end. In fact, foreign investors net purchased ₩536bil worth of KOSDAQ stocks in Sep alone. This is more than one fourth of their total net purchase from Jan to July. However, they net sold a total of ₩3.465tril worth of KOSPI stocks in the last two months. It seems clear that foreign investors' appetite has changed drastically in the last two months. That is, they are scooping up KOSDAQ stocks and dumping KOSPI stocks.<table class="table table-striped"><colgroup></colgroup><tbody><tr><td>(Shares, ₩)</td><td colspan="2">KOSDAQ</td><td colspan="2">KOSPI</td></tr><tr><td></td><td>Net trade volume</td><td>Net trade value</td><td>Net trade volume</td><td>Net trade value</td></tr><tr><td>Jan - July</td><td>-26,469,863</td><td>+2,036,022,065,002</td><td>303,361,818</td><td>+8,724,829,647,120</td></tr><tr><td>Aug</td><td>11,853,686</td><td>+276,445,341,427</td><td>15,985,082</td><td>-1,875,161,062,234</td></tr><tr><td>Sep</td><td>18,014,568</td><td>+535,789,044,679</td><td>-20,254,807</td><td>-1,589,880,870,918</td></tr><tr><td colspan="5">Source: KRX</td></tr></tbody></table>

Last month, foreign investors went on a buying spree in the Korea's second largest stock market, KOSDAQ. In contrast, they went on a selling spree in the Korea's largest stock market, KOSPI during the same period. This is very interesting since these foreign investors seem to be thinking that NPS initiated passive investing paradigm might have come to an end. In fact, foreign investors net purchased ₩536bil worth of KOSDAQ stocks in Sep alone. This is more than one fourth of their total net purchase from Jan to July. However, they net sold a total of ₩3.465tril worth of KOSPI stocks in the last two months. It seems clear that foreign investors' appetite has changed drastically in the last two months. That is, they are scooping up KOSDAQ stocks and dumping KOSPI stocks.(Shares, ₩)KOSDAQKOSPINet trade volumeNet trade valueNet trade volumeNet trade valueJan - July-26,469,863+2,036,022,065,002303,361,818+8,724,829,647,120Aug11,853,686+276,445,341,42715,985,082-1,875,161,062,234Sep18,014,568+535,789,044,679-20,254,807-1,589,880,870,918Source: KRX

Foreign Investors Vs. Local Institutions in Korean Stock Market - Who Is Right?

South Korea

mPLUS corp. operates as an automation equipment manufacturing company. The Company produces and sells motching system equipment, tab welding equipment, packaging equipment, and other products. mPLUS also manufactures rechargeable battery products.

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mPlus Corp (259630 KS)

Tapex IPO (Valuation Analysis) - A Market Leader in Rechargeable Batteries Tapes

We like the Tapex IPO and recommend investors to take the deal. The company has a solid niche in the rechargeable battery, semiconductor, and...

Douglas Kim

Foreign Investors Vs. Local Institutions in Korean Stock Market - Who Is Right?

Last month, foreign investors went on a buying spree in the Korea's second largest stock market, KOSDAQ. In contrast, they went on a selling spree...

Sanghyun Park

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