Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>Neom is the largest construction project in the world with total project size of nearly $500 billion. </li>
<li>Neom has started to provide construction project awards for key projects in 1H 2022. Hyundai E&amp;C and Samsung C&amp;T consortium recently won a project estimated at $1 billion for Neom. </li>
<li>Samsung C&amp;T and Hyundai E&amp;C are two key companies in Korea that will be long-term beneficiaries of the Neom futuristic city construction in Saudi Arabia. </li>
</ul>


Neom is the largest construction project in the world with total project size of nearly $500 billion. 
Neom has started to provide construction project awards for key projects in 1H 2022. Hyundai E&amp;C and Samsung C&amp;T consortium recently won a project estimated at $1 billion for Neom. 
Samsung C&amp;T and Hyundai E&amp;C are two key companies in Korea that will be long-term beneficiaries of the Neom futuristic city construction in Saudi Arabia. 


Samsung C&T and Hyundai E&C: Two Main Beneficiaries of Neom (World's Biggest Construction Project)

Equity Capital Markets

<ul>
<li>Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery materials in Korea. </li>
<li>It has experienced excellent growth in sales and profits. It had revenue of 147.3 billion won (up 123.3% YoY) and operating profit of 16.9 billion won in 2021.</li>
<li>The IPO price range is from 40,700 won to 47,500 won. The IPO base deal size ranges from $86 million to $100 million.</li>
</ul>


Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery materials in Korea. 
It has experienced excellent growth in sales and profits. It had revenue of 147.3 billion won (up 123.3% YoY) and operating profit of 16.9 billion won in 2021.
The IPO price range is from 40,700 won to 47,500 won. The IPO base deal size ranges from $86 million to $100 million.


<ul>
<li>Three major positive factors for Samsung C&amp;T include deep discount NAV, capital shifting to value/holdcos, and higher commodity prices boosting trading business earnings. </li>
<li>Shanghai lockdown remains a black box event and there are some increasing concerns that the China COVID induced lockdowns could result in a potential earnings miss for Samsung Electronics.</li>
<li>Samsung C&amp;T (028260 KS) has been outperforming Samsung Electronics (005930 KS). Samsung C&amp;T is flat for the year versus Samsung Electronics which is down 13.6% YTD.</li>
</ul>


Three major positive factors for Samsung C&amp;T include deep discount NAV, capital shifting to value/holdcos, and higher commodity prices boosting trading business earnings. 
Shanghai lockdown remains a black box event and there are some increasing concerns that the China COVID induced lockdowns could result in a potential earnings miss for Samsung Electronics.
Samsung C&amp;T (028260 KS) has been outperforming Samsung Electronics (005930 KS). Samsung C&amp;T is flat for the year versus Samsung Electronics which is down 13.6% YTD.


Samsung C&T: Deep Discount NAV, Capital Shifting to Value/Holdcos, & Trading Business Boost

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.

Samsung Biologics   / Equity Capital Markets

<ul>
<li>Samsung Biologics (207940 KS) has succeeded in a rights offering worth ₩3.2T to the existing shareholders. The subscription rate of the existing shareholders and the ESOP came out at 100.25%.</li>
<li>The size of immediately floatable shares is estimated at 1 million, representing 1.55% of SO and 22.82x ADTV. It is a size that will significantly impact the short-term flow.</li>
<li>There is a sufficient circumstantial probability that the 1M new stocks, currently at a 20% return, will lead to immediate profit realization after listing.</li>
</ul>


Samsung Biologics (207940 KS) has succeeded in a rights offering worth ₩3.2T to the existing shareholders. The subscription rate of the existing shareholders and the ESOP came out at 100.25%.
The size of immediately floatable shares is estimated at 1 million, representing 1.55% of SO and 22.82x ADTV. It is a size that will significantly impact the short-term flow.
There is a sufficient circumstantial probability that the 1M new stocks, currently at a 20% return, will lead to immediate profit realization after listing.


Samsung Biologics: Post-Offering Trading Dynamics on Potential Overhang

Event-Driven

<ul>
<li>The Samsung Group owner Lee family wants to partially sell their stake in Samsung Sds worth 390 billion won in a block deal.</li>
<li>The block deal sale involves 3.02 million shares of Samsung SDS or 3.9% of outstanding shares.</li>
<li>We would avoid this block deal as the company may face continued overhang sale issue in the next 1-2 years. </li>
</ul>


The Samsung Group owner Lee family wants to partially sell their stake in Samsung Sds worth 390 billion won in a block deal.
The block deal sale involves 3.02 million shares of Samsung SDS or 3.9% of outstanding shares.
We would avoid this block deal as the company may face continued overhang sale issue in the next 1-2 years. 


Block Deal Sale of Samsung SDS by the Lee Family to Pay for Inheritance Taxes

South Korea

Samsung C&T Corporation conducts diversified business support services and resort operation activities. The Company offers a range of services in areas including clothing retail, construction, energy, real estate, food service, and resort accommodations. Samsung C&T also operates a resort with amusement rides, a zoo, water park, golf clubs, and restaurants.

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Samsung C&T (028260 KS)

Samsung C&T and Hyundai E&C: Two Main Beneficiaries of Neom (World's Biggest Construction Project)

Neom is the largest construction project in the world with total project size of nearly $500 billion. Hyundai E&C and Samsung C&T consortium...

Douglas Kim

Sungeel HiTech IPO Preview

Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery...

Douglas Kim

Samsung C&T: Deep Discount NAV, Capital Shifting to Value/Holdcos, & Trading Business Boost

Three major positive factors for Samsung C&T include deep discount NAV, capital shifting to value/holdcos, and higher commodity prices boosting...

Douglas Kim

Samsung Biologics: Post-Offering Trading Dynamics on Potential Overhang

This post discusses Samsung Biologics' post-offering trading dynamics on potential overhang as a little more than 1M new shares, 22x ADTV, will...

Sanghyun Park

Block Deal Sale of Samsung SDS by the Lee Family to Pay for Inheritance Taxes

The Samsung Group owner Lee family wants to partially sell their stake in Samsung Sds worth 390 billion won in a block deal. We would avoid this...

Douglas Kim

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