Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Our base case valuation of Nexteel is target price of 18,671 won per share, which represents 49% higher than the high end of the IPO price range of 12,500 won. </li>
<li>We estimate Nexteel to generate sales of 883.6 billion won (up 32.2% YoY) and operating profit of 257.4 billion won (up 42% YoY) in 2023.</li>
<li>Nexteel's main products include pipes used to extract oil and gas from oil wells. It also makes steel pipes for transporting oil &amp; steam, construction, shipbuilding, and machinery industries.</li>
</ul>


Our base case valuation of Nexteel is target price of 18,671 won per share, which represents 49% higher than the high end of the IPO price range of 12,500 won. 
We estimate Nexteel to generate sales of 883.6 billion won (up 32.2% YoY) and operating profit of 257.4 billion won (up 42% YoY) in 2023.
Nexteel's main products include pipes used to extract oil and gas from oil wells. It also makes steel pipes for transporting oil &amp; steam, construction, shipbuilding, and machinery industries.


<ul>
<li>Nexteel is getting ready to complete its IPO in Korea in August. Nexteel is a steel pipe manufacturing company. The IPO price range is from 11,500 won to 12,500 won. </li>
<li>The IPO offering size is from 80.5 billion won to 87.5 billion won. The expected market cap is from 299 billion won to 325 billion won.</li>
<li>Nexteel's sales increased at a CAGR of 76.4% from 2020 to 2022. The company's operating profit surged from 1.5 billion won in 2020 to 181.3 billion won in 2022. </li>
</ul>


Nexteel is getting ready to complete its IPO in Korea in August. Nexteel is a steel pipe manufacturing company. The IPO price range is from 11,500 won to 12,500 won. 
The IPO offering size is from 80.5 billion won to 87.5 billion won. The expected market cap is from 299 billion won to 325 billion won.
Nexteel's sales increased at a CAGR of 76.4% from 2020 to 2022. The company's operating profit surged from 1.5 billion won in 2020 to 181.3 billion won in 2022. 


South Korea

Husteel Co., Ltd. manufactures and markets a variety of steel pipes such as line pipes, structural pipes, PFP pipes, and polyethylene-coated steel pipes.  The Company's products apply to convey liquid, gas, or vapor, and to complement buildings.  Husteel supplies its products mainly to automobile, and construction industries.

Hyundai BNG Steel Co., Ltd. manufactures cold rolled stainless steel sheets, special steel bars, and seamless steel tubes.

Choil Aluminum Co., Ltd. manufactures and markets aluminum sheets, plates, ingots, foils. and fins.  The Company supplies its products to the construction materials, electric, electronic, shipbuilding, automobile, and packaging industries.

Dongkuk Steel Mill Co., Ltd. manufactures a variety of steel products.  The Company's products include rod steel for reinforced concrete, shape steel, and steel sheet for the construction and shipbuilding industries.

KISCO Holdings Co., Ltd. manufactures a variety of steel products. The Company's products include steel plates, steel pipes, reinforcing bars, steel channels, hot rolled steel bars, steel angles, and forged steel bars.

Posco Coated & Color Steel Company, Ltd. manufactures second process steel sheets and coils. The Company's main products include hot-dip galvanized coils and sheets, hot-dip aluminized steel sheets, and pre-painted steel sheets.

Posco Coated & Color Steel Co Ltd(Parent (058430 KS)

Dongkuk Industries Co., Ltd. manufactures cold rolled low carbon steel, hot-dip galvanized steel, pickled & oiled coil, ceramics, ferrite and refractories.  The Company also operates international trading and construction services.

Daehan Steel Co., Ltd. manufactures steel bars for concrete reinforcement. The Company's product includes round steel bar and deformed steel bar.  Daehan Steel provides the product for construction industry.

KISCO Corp. provides a wide range of steel products. The Company produces deformed bars including high tensile steel bars for nuclear power plants and low-allow steel bars for liquefied natural gas underground storage facilities.

Namsun Aluminum Co., Ltd. manufactures aluminum products, such as aluminum sash and circlet.

Jiin Yeeh Ding Enterprise Co., Ltd sells precious and single metals, and processes mixed waste hardware. The Company offers gold, silver, platinum, palladium and copper powder for electronic, automobile, chemical, petrochemical products.

Meteoric Resources NL is a gold and copper-gold exploration company.  The Company's primary exploration activities are situated in the Tennant Creek gold field in the Northern Territory and in the Peak Hill and Yilgarn regions of Western Australia.

GreenX Metals Limited provides exploration and mining services. The Company explores and develops copper and other critical mineral projects. GreenX Metals serves customers worldwide.

Monnet Ispat Limited manufactures a range of steel products, ferro alloys and sponge iron.  The Company also produces power for captive consumption.

Base Resources Limited is a resources developer. The Company develops and produces mineral sand. Base Resources serves customers in Africa and Australia.

Yunnan Luoping Zinc & Electricity Co., Ltd. mines, extracts, and refines lead and zinc products. The company also generates, transmits, and distributes electricity.

Shanghai Prosolar Resources Development Company Ltd. is an industrial investment company. The Company is also engaged in iron ore mining, production, and sales.

Araya Industrial Co., Ltd. manufactures and sells bicycles, bicycle rims, and related parts.  The Company also produces construction materials including steel pipes.

Quintain Steel Co., Ltd. manufactures steel wire rods, galvanized iron wires, galvanized steel wires, and spheroidized wires.

Ningxia Xinri Hengli Steel Wire Co Ltd manufactures and markets ropes and wire products.  Through its subsidiaries, the Company also invests in construction engineering, coal mining, apparel processing, and agricultural machinery processing businesses.

Ningxia Xinri Hengli Steel Wire (600165 CH)

Nexteel.Co.Ltd operates steel manufacturing businesses. The Company produces round pipes, square pipes, painting square pipes, and other products. Nexteel conducts businesses in South Korea.

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Nexteel (092790 KS)

Nexteel IPO Valuation Analysis

Our base case valuation of Nexteel is target price of 18,671 won per share, which represents 49% higher than the high end of the IPO price range of...

Douglas Kim

Nexteel IPO Preview

Nexteel is getting ready to complete its IPO in August. Its sales increased at a CAGR of 76.4% from 2020 to 2022. Its operating profit surged from...

Douglas Kim

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