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.

Event-Driven

Myoung Shin Industrial Co.,Ltd / Event-Driven

We should expect more changes than usual in the upcoming KOSPI 200 index review.The KRX confirmed that<ul>
<li>The original company of F&amp;F (007700) will remain in KOSPI 200</li>
<li>The original company of LG (003550) will remain in KOSPI200</li>
<li>The spin-off company of LG (003550), known as LX Holdings, will join KOSPI 200</li>
</ul>SK Bioscience (302440) must have secured a fast entry, although the KRX has yet to announce it officially.During the review period (November 1-April 23, yes, we still have 5 more days to go), the daily average market cap spits out 6 names for potential addition.Thus, we have 8 potential additions, which I believe have a 90% probability.<table class="table table-striped">
<colgroup>
<col width="200">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Additions - inflow (₩B)"}'>Potential additions (₩B)</td>
<td style="text-align: right; width: 116.364px;">Type</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"MC"}'>Daily average market cap</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":2,"2":"FMC"}'>Daily average float-adj market cap</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Hyosung Advanced Materials Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hyosung Advanced Materials Corp</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":298050}' data-sheets-formula="='1st'!R[24]C[0]">298050</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1859.17842}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,859.2</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":1028.869337628}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">1,028.9</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Taihan Electric Wire Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Taihan Electric Wire Co Ltd</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"001440"}' data-sheets-formula="='1st'!R[71]C[0]">001440</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1019.20288071}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,019.2</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":457.112491998435}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">457.1</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"TY Holdings Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>TY Holdings Co Ltd</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":363280}' data-sheets-formula="='1st'!R[71]C[0]">363280</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1112.7537355}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,112.8</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":530.3384303393}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">530.3</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Hyosung TNC Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hyosung TNC Corp</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":298020}' data-sheets-formula="='1st'!R[95]C[0]">298020</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":3215.467726}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>3,215.5</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":1794.8740846532}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">1,794.9</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Myoung Shin Industrial Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Myoung Shin Industrial Co Ltd</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"009900"}' data-sheets-formula="='1st'!R[96]C[0]">009900</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1190.750304}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,190.8</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":437.71981175039997}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">437.7</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Dongwon Industries Co., Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Dongwon Industries Co., Ltd</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"006040"}' data-sheets-formula="='1st'!R[128]C[0]">006040</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":961.7031215}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>961.7</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":283.22156928174996}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">283.2</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"SK Bioscience Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK Bioscience Co Ltd</td>
<td style="text-align: right; width: 116.364px;">Fast-entry</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"302440"}' data-sheets-formula='="302440"'>302440</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":11513.25}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>11,513.3</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":2953.1486250000003}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">2,953.1</td>
</tr>
<tr>
<td style="width: 262.727px;">LX Holdings </td>
<td style="text-align: right; width: 116.364px;">Spin-off</td>
<td style="text-align: right; width: 80.9091px;">-</td>
<td style="text-align: right; width: 80.9091px;">-</td>
<td style="text-align: right; width: 98.1818px;">-</td>
</tr>
<tr><td colspan="5" style="width: 262.727px;">Source: KRX</td></tr>
</tbody>
</table>To make room for the new members, the following 8 names will likely leave the index based on the review until April 23.<table class="table table-striped">
<colgroup>
<col width="200">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Deletions - outflow (₩B)"}'>Potential deletions (₩B)</td>
<td style="text-align: right; width: 130px;">Type</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":2,"2":"MC"}'>Daily average market cap</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":2,"2":"FMC"}'>Daily average float-adj market cap</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Tae Young Engineering&amp;Constructin Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Tae Young Engineering&amp;Constructin Co Ltd</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"009410"}' data-sheets-formula="='2nd S'!R[-40]C[0]">009410</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":490.1286348}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>490.1</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":246.63272903136}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">246.6</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Namsun Aluminum Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Namsun Aluminum Co Ltd</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"008350"}' data-sheets-formula="='2nd S'!R[-40]C[0]">008350</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":424.74039195}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>424.7</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":347.94732908544}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">347.9</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Binggrae Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Binggrae Co Ltd</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"005180"}' data-sheets-formula="='2nd S'!R[-40]C[0]">005180</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":633.4347963}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>633.4</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":309.49624147218}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">309.5</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Hanil Hyundai Cement Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Hanil Hyundai Cement Co Ltd</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"006390"}' data-sheets-formula="='2nd S'!R[-40]C[0]">006390</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":697.2424705}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>697.2</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":109.81568910374999}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">109.8</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Samyang Corp"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Samyang Corp</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":3,"3":145990}' data-sheets-formula="='2nd S'!R[-40]C[0]">145990</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":627.0576992}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>627.1</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":184.04143471519998}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">184.0</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Lock&amp;Lock Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Lock&amp;Lock Co Ltd</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":3,"3":115390}' data-sheets-formula="='2nd S'!R[-40]C[0]">115390</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":832.2199166}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>832.2</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":251.99619074648}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">252.0</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"LG HAUSYS, LTD."}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>LG HAUSYS, LTD.</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":3,"3":108670}' data-sheets-formula="='2nd S'!R[-40]C[0]">108670</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":782.877591}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>782.9</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":518.6564040375}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">518.7</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"JW Pharmaceutical Corp"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>JW Pharmaceutical Corp</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"001060"}' data-sheets-formula="='2nd S'!R[-40]C[0]">001060</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":651.5827615}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>651.6</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":364.4953967831}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">364.5</td>
</tr>
<tr><td colspan="5" style="width: 720.909px;">Source: KRX</td></tr>
</tbody>
</table><hr><div class="content-highlight">SK IE Technology also has a decent shot to a fast entry. If that happens, KEPCO Engineering &amp; Construction (052690) will be a likely deletion.</div>

We should expect more changes than usual in the upcoming KOSPI 200 index review.The KRX confirmed that
The original company of F&amp;F (007700) will remain in KOSPI 200
The original company of LG (003550) will remain in KOSPI200
The spin-off company of LG (003550), known as LX Holdings, will join KOSPI 200
SK Bioscience (302440) must have secured a fast entry, although the KRX has yet to announce it officially.During the review period (November 1-April 23, yes, we still have 5 more days to go), the daily average market cap spits out 6 names for potential addition.Thus, we have 8 potential additions, which I believe have a 90% probability.








Potential additions (₩B)
Type
Ticker
Daily average market cap
Daily average float-adj market cap


Hyosung Advanced Materials Corp
Regular review
298050
1,859.2
1,028.9


Taihan Electric Wire Co Ltd
Regular review
001440
1,019.2
457.1


TY Holdings Co Ltd
Regular review
363280
1,112.8
530.3


Hyosung TNC Corp
Regular review
298020
3,215.5
1,794.9


Myoung Shin Industrial Co Ltd
Regular review
009900
1,190.8
437.7


Dongwon Industries Co., Ltd
Regular review
006040
961.7
283.2


SK Bioscience Co Ltd
Fast-entry
302440
11,513.3
2,953.1


LX Holdings 
Spin-off
-
-
-

Source: KRX

To make room for the new members, the following 8 names will likely leave the index based on the review until April 23.








Potential deletions (₩B)
Type
Ticker
Daily average market cap
Daily average float-adj market cap


Tae Young Engineering&amp;Constructin Co Ltd
Regular review
009410
490.1
246.6


Namsun Aluminum Co Ltd
Regular review
008350
424.7
347.9


Binggrae Co Ltd
Regular review
005180
633.4
309.5


Hanil Hyundai Cement Co Ltd
Regular review
006390
697.2
109.8


Samyang Corp
Regular review
145990
627.1
184.0


Lock&amp;Lock Co Ltd
Regular review
115390
832.2
252.0


LG HAUSYS, LTD.
Regular review
108670
782.9
518.7


JW Pharmaceutical Corp
Regular review
001060
651.6
364.5

Source: KRX

SK IE Technology also has a decent shot to a fast entry. If that happens, KEPCO Engineering &amp; Construction (052690) will be a likely deletion.

KOSPI 200 Index Review: Likely Changes Incl. Spinoff & Fast Entry & Stock in Early Trading

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

Myoung Shin Industrial Co.,Ltd / Equity Bottom-Up

Myoungshin Industrial (009900 KS) has been one of the hottest IPOs in Korea in 2020. It completed its IPO on 7 December at the IPO price of 6,500 won.  The stock price has surged nearly 7x in 11 trading days to 51,800 won as of 21 December. Its market cap has exploded to 2.1 trillion won ($1.9 billion). This surge is mostly driven by retail money and it reflects a retail madness of crowds in terms of FOMO (fear of missing out). Tesla's inclusion date for S&amp;P 500 index is on 21 December. We believe this is a significant date for Tesla as well as many of its suppliers such as Myoungshin Industrial as well as for the entire overall EV value chain. Although we do not claim to foretell how Tesla will perform post this date, we do believe there have been a big chunk of investors who have been positioning to buy Tesla and its related suppliers leading into this S&amp;P 500 index inclusion and selling them after the inclusion. Our high end case for Myoungshin Industrial assumed a net profit estimate of 45.7 billion won (an average of 2020 and 2021) and applied a 12.2x P/E (which is about 33% premium to the average P/E of the comps in 2020). At the current market cap of 2.1 trillion won, Myoungshin Industrial is trading at a 46x P/E using the high end of our net profit estimate of 45.7 billion won. Although Myoungshin Industrial has a solid technology for hot stamping products, is this really that special to warrant this very high valuation multiples? We do not believe so.

Myoungshin Industrial (009900 KS) has been one of the hottest IPOs in Korea in 2020. It completed its IPO on 7 December at the IPO price of 6,500 won.  The stock price has surged nearly 7x in 11 trading days to 51,800 won as of 21 December. Its market cap has exploded to 2.1 trillion won ($1.9 billion). This surge is mostly driven by retail money and it reflects a retail madness of crowds in terms of FOMO (fear of missing out). Tesla's inclusion date for S&amp;P 500 index is on 21 December. We believe this is a significant date for Tesla as well as many of its suppliers such as Myoungshin Industrial as well as for the entire overall EV value chain. Although we do not claim to foretell how Tesla will perform post this date, we do believe there have been a big chunk of investors who have been positioning to buy Tesla and its related suppliers leading into this S&amp;P 500 index inclusion and selling them after the inclusion. Our high end case for Myoungshin Industrial assumed a net profit estimate of 45.7 billion won (an average of 2020 and 2021) and applied a 12.2x P/E (which is about 33% premium to the average P/E of the comps in 2020). At the current market cap of 2.1 trillion won, Myoungshin Industrial is trading at a 46x P/E using the high end of our net profit estimate of 45.7 billion won. Although Myoungshin Industrial has a solid technology for hot stamping products, is this really that special to warrant this very high valuation multiples? We do not believe so. 

Myoungshin Industrial - Best Performing IPO in Korea in 2020 (Retail FOMO Madness of Crowds)

Equity Capital Markets

Myoung Shin Industrial Co.,Ltd / Equity Capital Markets

Myungshin Industrial, which is one of the Korean auto parts suppliers to Tesla, is getting ready to complete its IPO in early December. The company has chosen to postpone its IPO by about three weeks (from early/mid-November). This was probably due to the management's decision to complete the IPO post the U.S. Presidential elections.
Myungshin Industrial's business strong point is that it has an excellent technology of the hot stamping method in which the steel plate is heated at high temperatures and then cooled rapidly to form various shapes. The company has a strong customer base including Hyundai Motor, Kia Motors, and Tesla.
<div class="content-highlight">
Our base case valuation of Myungshin Industrial IPO is 458.6 billion won in market cap or an implied price per share of 8,735 won. The IPO price range is between 4,900 won and 5,800 won. Our target price is 51% higher than the high end of the IPO price range. Given this excellent upside, we have a positive view of this IPO. We are including Myungshin Industrial in our model portfolio.  
</div>

Myungshin Industrial, which is one of the Korean auto parts suppliers to Tesla, is getting ready to complete its IPO in early December. The company has chosen to postpone its IPO by about three weeks (from early/mid-November). This was probably due to the management's decision to complete the IPO post the U.S. Presidential elections.
Myungshin Industrial's business strong point is that it has an excellent technology of the hot stamping method in which the steel plate is heated at high temperatures and then cooled rapidly to form various shapes. The company has a strong customer base including Hyundai Motor, Kia Motors, and Tesla.

Our base case valuation of Myungshin Industrial IPO is 458.6 billion won in market cap or an implied price per share of 8,735 won. The IPO price range is between 4,900 won and 5,800 won. Our target price is 51% higher than the high end of the IPO price range. Given this excellent upside, we have a positive view of this IPO. We are including Myungshin Industrial in our model portfolio.  


Myungshin Industrial IPO Valuation Analysis

Myungshin Industrial, which is one of the Korean auto parts suppliers to Tesla, is getting ready to complete its IPO in November. The IPO price range is from 4,900 won to 5,800 won. The IPO base deal size is from $67 million to $79 million. Mirae Asset Daewoo Securities is the lead underwriter of the IPO. The book-building for the institutional investors starts on 5 November 2020.
The company has experienced tremendous growth in sales and profits in the past five years. Its sales jumped by 42.9% CAGR from 2016 to 2019. Its operating profit surged from 9.5 billion won in 2016 to 59.6 billion won in 2019. In 1H 2020, the company generated sales of 354.8 billion won (down 6.4% YoY), and an operating profit of 22.8 billion won (down 24.5% YoY).

Myungshin Industrial, which is one of the Korean auto parts suppliers to Tesla, is getting ready to complete its IPO in November. The IPO price range is from 4,900 won to 5,800 won. The IPO base deal size is from $67 million to $79 million. Mirae Asset Daewoo Securities is the lead underwriter of the IPO. The book-building for the institutional investors starts on 5 November 2020.
The company has experienced tremendous growth in sales and profits in the past five years. Its sales jumped by 42.9% CAGR from 2016 to 2019. Its operating profit surged from 9.5 billion won in 2016 to 59.6 billion won in 2019. In 1H 2020, the company generated sales of 354.8 billion won (down 6.4% YoY), and an operating profit of 22.8 billion won (down 24.5% YoY). 

Myungshin Industrial IPO Preview - A Korean Hot Stamping Auto Parts Supplier to Tesla

South Korea

Myoung Shin Industrial Co.,Ltd produces and sells auto parts. The Company provides hot stamping parts designing, manufacturing, sales and other services. Myoung Shin Industrial markets its products throughout Korea

Myoung Shin Industrial Co.,Ltd (009900 KS)

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Myoung Shin Industrial Co.,Ltd (009900 KS)

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Myungshin Industrial, which is one of the Korean auto parts suppliers to Tesla, is getting ready to complete its IPO in November.

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