Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>
<strong>Established in 2014, <a href="https://www.smartkarma.com/entities/27423" target="_blank" data-smartkarma-citation="entities:27423:1">S-Fuelcell (SFUEL KS)</a> is a leading company in Korea that mainly provides fuel cell systems and services.</strong> S-Fuelcell IPO is expected to be completed in September 2018. The bankers' IPO price band is from 10,600 won to 14,000 won. The IPO base deal size is from US$18 million to US$24 million. Korea Investment &amp; Securities is the lead banker on this IPO deal. The institutional investors book building starts on September 18th, 2018. </li>
<li>
<a href="https://www.smartkarma.com/entities/17159" target="_blank" data-smartkarma-citation="entities:17159:1">S Energy Co Ltd (095910 KS)</a> is the largest owner of S-Fuelcell Co with a 67.7% stake as of August 27th, 2018.</li>
<li>The bankers used three companies, including <a href="https://www.smartkarma.com/entities/4883" target="_blank" data-smartkarma-citation="entities:4883:1">Cs Wind Corp (112610 KS)</a>, <a href="https://www.smartkarma.com/entities/9506" target="_blank" data-smartkarma-citation="entities:9506:1">Sdn Co Ltd (099220 KS)</a>, and <a href="https://www.smartkarma.com/entities/24385" target="_blank" data-smartkarma-citation="entities:24385:1">EWK Inc. (258610 KS)</a> as comparable companies to S-Fuelcell. They used the annualized net profit from 3Q17 to 2Q18. The comps' average P/E was 21.7x. The bankers then took the annualized net profit of S-Fuelcell from 3Q17 to 2Q18 (3.98 billion won) and applied the average P/E of 21.7x, resulting in a market cap (pre-IPO discount) of 86.4 billion won or 15,044 won. Post the IPO discount of 6.94% to 29.54%, this results in an implied value per share of 10,600 won to 14,000 won. </li>
<li>The company's sales jumped from 5.1 billion won in 2015 to 20.3 billion won in 2017, representing a CAGR of 99.7% during this period. It also generated sales of 14.9 billion won in 1H18, representing 74% of total sales in 2017. The company generated operating margin of 16.2% in 2017 and 14.6% in 1H18. </li>
</ul>



Established in 2014, S-Fuelcell (SFUEL KS) is a leading company in Korea that mainly provides fuel cell systems and services. S-Fuelcell IPO is expected to be completed in September 2018. The bankers' IPO price band is from 10,600 won to 14,000 won. The IPO base deal size is from US$18 million to US$24 million. Korea Investment &amp; Securities is the lead banker on this IPO deal. The institutional investors book building starts on September 18th, 2018. 

S Energy Co Ltd (095910 KS) is the largest owner of S-Fuelcell Co with a 67.7% stake as of August 27th, 2018.
The bankers used three companies, including Cs Wind Corp (112610 KS), Sdn Co Ltd (099220 KS), and EWK Inc. (258610 KS) as comparable companies to S-Fuelcell. They used the annualized net profit from 3Q17 to 2Q18. The comps' average P/E was 21.7x. The bankers then took the annualized net profit of S-Fuelcell from 3Q17 to 2Q18 (3.98 billion won) and applied the average P/E of 21.7x, resulting in a market cap (pre-IPO discount) of 86.4 billion won or 15,044 won. Post the IPO discount of 6.94% to 29.54%, this results in an implied value per share of 10,600 won to 14,000 won. 
The company's sales jumped from 5.1 billion won in 2015 to 20.3 billion won in 2017, representing a CAGR of 99.7% during this period. It also generated sales of 14.9 billion won in 1H18, representing 74% of total sales in 2017. The company generated operating margin of 16.2% in 2017 and 14.6% in 1H18. 


S-Fuelcell Co IPO Preview (Part 1) - A Leading Provider of Fuel Cell Systems in Korea

South Korea

Seoho Electric Co., Ltd. manufactures industrial machineries, such as converters, inverters, and factory automation systems.  The Company's products are used in crane, wire and cable, and metal industries.

Kwang Myung Electric Engineering Co., Ltd. manufactures electric transformers, gas insulated switchgears, protective relays and control boards, medium and low voltage metal clad and metal enclosed switchgears, and electricity distribution boards.

Kwangmyung Electric Engineering (017040 KS)

SDN Co., Ltd. develops, manufactures, and sells power generators and marine propulsion systems.  The Company's products include solar modules using heterojunction with Intrinsic Thin Layer (HIT) structure and engines, gears, and propellers for marine application.

GnCenergy Co Ltd was founded in 1989. The company's line of business includes manufacturing motors and generators.

Semyung Electric Machinery Co., Ltd. specializes in manufacturing electric power fittings used for electricity transmission and distribution.  The Company also develops and produces automotive engine parts, including manifold and fabric weaving machinery part, such as sectional beams.  Semyung supplies its products mainly to Korea Electric Power Corporation.

DSR Wire Corp. develops and manufactures steel wire ropes for construction, mining, and fisheries.  The Company also produces carbon contained strong wire for spring and rolling.

PS Tec Co., Ltd. manufactures auto parts, such as power window motor housings, fan motors, and wiper motors.  The Company also manufactures and markets power measuring and controlling devices such as electricity meters, heat meters, hot water meters, electric thermostatic valves, time switches, and remote meter reading systems.

Feelux Co., Ltd. manufactures electronic components and materials including ferrite cores and transformers.  The Company's products are used in consumer electronics and electric home appliances.  Feelux also operates the lighting business.

RFTech Co., Ltd. develops and manufactures various battery chargers for wireless communication products.  The Company's products include desktop chargers, travel adapters, download adapters, and cigar light chargers.  RFTech also produces hands-free kits for cellular phones, data link cables, and printer peripherals.

Daeyang Electric Co., Ltd. manufactures industrial lighting products and fixtures. The Company also produces electrical components that control electric current and industrial fans used for ships and trains.

Canare Electric Co., Ltd. manufactures and distributes cables and connectors. The Company's products are used for telecommunication, broadcasting, and electronic musical instrument.  The Company has sales offices in the US, Hong Kong, and South Korea.

Toyo Denki Seizo KK manufactures electrical equipment for rolling stock used in the transportation and industrial sectors.  The Company includes railway companies as a major part of its customer base.  Toyo Denki Seizo also manufactures industrial electronics, electrical machinery, and environmental equipment.

Samya Technology Co Ltd develops, produces, retails mobile phones power supply and related electronic devices.

China Titans Energy Technology Group Company Limited (TITANS) focuses on power electronics.  The Company provides services and products for customers in the power generation field.  TITANS manufactures and supplies Electrical DC products series, power grid monitoring and management products, charging equipment for electric vehicles, and wind and solar power generation control products.

China Titans Energy Technology Group Co (2188 HK)

Modison Metals Ltd. manufactures electrical contacts made of silver and silver alloys. The Company supplies its products to switchgear manufacturers in India and elsewhere throughout the world.

Ablerex Electronics Co., Ltd. manufactures and distributes power supply and related products. The Company provides power supply equipment, active power filters, and solar energy systems and devices. Ablerex also offers maintenance services of power supply products.

Logah Technology Corp manufactures semiconductor for original equipment manufacturer maktets.  the Company's product include Inverters, high-level power supply and display power supply for LCD tv, notebook PC and LCD monitors.

KIKUSUI ELECTRONICS CORPORATION manufactures and markets electronic measuring instruments and power source equipment.  The Company tied up with IFR (UK) and Kyoritsu Electric as a sales agent.

Cincon Electronics Co., Ltd. manufactures and markets industrial power supplies.

Galaxy Biomedical Investment Co.,Ltd. mainly engages in the manufacturing of electricity transmission and control equipment and electronic components as well as software system integration development and pharmaceutical biotechnology.

Beihai Yinhe Industry Investment (000806 CH)

S-Fuelcell Co,. Ltd. operates as a fuel cells manufacturing company. The Company produces phosphoric acid fuel cells and other products. S-Fuelcell markets its products throughout Korea.

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S-Fuelcell (288620 KS)

S-Fuelcell Co IPO Preview (Part 1) - A Leading Provider of Fuel Cell Systems in Korea

Established in 2014, S-Fuelcell (SFUEL KS) is a leading company in Korea that mainly provides fuel cell systems and services. S-Fuelcell IPO is...

Douglas Kim

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52-week Range

Market Cap (USDm)

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