Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul><li><strong>Dentium IPO - <a href="https://www.smartkarma.com/entities/23565" target="_blank" data-smartkarma-citation="entities:23565:1">Dentium Co. Ltd (1247403D KS)</a> is a dental implant company in Korea with second highest market share and the highest ROE among its peers.</strong> Dentium is preparing for an IPO in the Korea Stock Exchange and is expected to become publicly listed in 2H16. </li><li>Established in 2000, Dentium currently has about 2% share in the global dental implants market. Given Dentium's strong profitability, growth rates, high ROE, advanced technology, and second leading market share in the dental implant market in Korea with strong exports to China, it is likely to receive keen attention. Plus, both of the company's peers, <a href="https://www.smartkarma.com/entities/1450" target="_blank" data-smartkarma-citation="entities:1450:1">Osstem Implant Co Ltd (048260 KS)</a> and Dio (039840 KS)'s share prices have performed well since their IPOs, which bode well for Dentium. </li><li>Dentium's exports to China were 24.3 billion won in 2015 (up 90% YoY),representing 25.6% of the company's sales in 2015, up from 15.6% of sales in 2014. The strong exports to China helped the company's total sales to increase 15.9% YoY to 95.4 billion won in 2015. The company's products are not just geared to the domestic market. Rather, more than half of its revenue are derived from overseas, especially in China and this is a strong selling point for the company.  </li><li>The dental implants market in Korea is estimated to be about US$250 million in size in 2016. There are about 50 companies in Korea that are involved in the dental implants market. It is estimated that the top five companies represent more than 80% of the market. The global dental implants market is estimated to be about US$3.9 billion in 2016. It is estimated that this market is expected to grow 7.4% CAGR from US3.7 billion in 2015 to US$7 billion by 2023. (Source: MRG, 2014)</li><li>Insurance coverage for dental implants started in 2014 in Korea, with people that are 75 years or older. In July 2015, this insurance coverage was expanded to those that are 70 years or older. Starting July 2016, the insurance coverage for the dental implants was expanded again to people that are 65 years or older. </li><li>Dentium's major comparable companies include two public companies <a href="https://www.smartkarma.com/entities/1450" target="_blank" data-smartkarma-citation="entities:1450:1">Osstem Implant Co Ltd (048260 KS)</a> and Dio (039840 KS) and two private companies (Neo Biotech and Megagen Implant). The latter company (Megagen Implant) is also planning on an IPO. The average P/E of Osstem Implant and Dio was 34.9x in 2016. </li></ul>

Dentium IPO - Dentium Co. Ltd (1247403D KS) is a dental implant company in Korea with second highest market share and the highest ROE among its peers. Dentium is preparing for an IPO in the Korea Stock Exchange and is expected to become publicly listed in 2H16. Established in 2000, Dentium currently has about 2% share in the global dental implants market. Given Dentium's strong profitability, growth rates, high ROE, advanced technology, and second leading market share in the dental implant market in Korea with strong exports to China, it is likely to receive keen attention. Plus, both of the company's peers, Osstem Implant Co Ltd (048260 KS) and Dio (039840 KS)'s share prices have performed well since their IPOs, which bode well for Dentium. Dentium's exports to China were 24.3 billion won in 2015 (up 90% YoY),representing 25.6% of the company's sales in 2015, up from 15.6% of sales in 2014. The strong exports to China helped the company's total sales to increase 15.9% YoY to 95.4 billion won in 2015. The company's products are not just geared to the domestic market. Rather, more than half of its revenue are derived from overseas, especially in China and this is a strong selling point for the company.  The dental implants market in Korea is estimated to be about US$250 million in size in 2016. There are about 50 companies in Korea that are involved in the dental implants market. It is estimated that the top five companies represent more than 80% of the market. The global dental implants market is estimated to be about US$3.9 billion in 2016. It is estimated that this market is expected to grow 7.4% CAGR from US3.7 billion in 2015 to US$7 billion by 2023. (Source: MRG, 2014)Insurance coverage for dental implants started in 2014 in Korea, with people that are 75 years or older. In July 2015, this insurance coverage was expanded to those that are 70 years or older. Starting July 2016, the insurance coverage for the dental implants was expanded again to people that are 65 years or older. Dentium's major comparable companies include two public companies Osstem Implant Co Ltd (048260 KS) and Dio (039840 KS) and two private companies (Neo Biotech and Megagen Implant). The latter company (Megagen Implant) is also planning on an IPO. The average P/E of Osstem Implant and Dio was 34.9x in 2016. 

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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Thematic (Sector/Industry)

<p>SillaJen Biotherapeutics (established in 2006) is indeed a rare breed in Korean pharmaceutical world. It is not a generic drug maker. It is not a biosimilar maker either. It makes new biomedical products. A majority of Korea's pharmaceutical makers are still generic drug makers. The likes of Celltrion and Samsung Bioepis have emerged as a biosimilar maker. But they are still a few. Biomedical makers are even rarer. Hanmi Pharmaceutical is one of these rare breeds. Now, another biomedical maker…</p>

SillaJen Biotherapeutics (established in 2006) is indeed a rare breed in Korean pharmaceutical world. It is not a generic drug maker. It is not a biosimilar maker either. It makes new biomedical products. A majority of Korea's pharmaceutical makers are still generic drug makers. The likes of Celltrion and Samsung Bioepis have emerged as a biosimilar maker. But they are still a few. Biomedical makers are even rarer. Hanmi Pharmaceutical is one of these rare breeds. Now, another biomedical maker…

SillaJen's December IPO: Valuation, Growth Expectation and IPO Timing

South Korea

Osstem Implant Co., Ltd. manufactures dental implant system. The Company also markets dental management software. Osstem Implant provides products for dental surgery and exports abroad.

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Osstem Implant (048260 KS)

Dentium IPO Preview: Part I

Dentium IPO - Dentium Co. Ltd (1247403D KS) is a dental implant company in Korea with second highest market share and the highest ROE among its...

Douglas Kim

SillaJen's December IPO: Valuation, Growth Expectation and IPO Timing

SillaJen Biotherapeutics (established in 2006) is indeed a rare breed in Korean pharmaceutical world. It is not a generic drug maker. It is not a...

Sanghyun Park

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