Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Wonbang Tech Co Ltd / Equity Capital Markets

In this insight, we provide a valuation analysis of Wonbangtech IPO. Its bookbuilding for the institutional investors starts on 8 September. We have a positive view on this IPO.Wonbangtech is one of the leading companies in Korea for providing clean room facilities for the semiconductor/display industries and dry room facilities for the lithium ion battery, medical device, and pharmaceutical production.Our base case valuation of the company is 341 billion won in market cap or 76,930 won per share, which represents 42% higher than the high end of the IPO price range of 54,300 won per share. To derive our base case valuation, we used a P/E multiple of 13.5x (average multiple of the comps) and applied it against our estimated net profit of 25.3 billion won in 2020.

In this insight, we provide a valuation analysis of Wonbangtech IPO. Its bookbuilding for the institutional investors starts on 8 September. We have a positive view on this IPO.Wonbangtech is one of the leading companies in Korea for providing clean room facilities for the semiconductor/display industries and dry room facilities for the lithium ion battery, medical device, and pharmaceutical production.Our base case valuation of the company is 341 billion won in market cap or 76,930 won per share, which represents 42% higher than the high end of the IPO price range of 54,300 won per share. To derive our base case valuation, we used a P/E multiple of 13.5x (average multiple of the comps) and applied it against our estimated net profit of 25.3 billion won in 2020.

Wonbangtech is getting ready for an IPO on the KOSDAQ exchange in the next several weeks. The IPO price range is from 43,000 won to 54,300 won. The IPO base deal size is from $46 million to $58 million. According to the bankers' valuation, the expected market cap after the IPO is from 190 billion won to 241 billion won.Established in 1989, Wonbangtech is one of the leading companies in Korea for providing clean room facilities for the semiconductor/display industries and dry room facilities for the lithium ion battery, medical device, and pharmaceutical production. Currently, only two to three companies in Korea have the technology to construct large scale semiconductor/display clean room facilities. The major Korean customers including Samsung Electronics, Samsung Display, SK Hynix, and LG Display are placing orders through limited competitive bidding targeting only a few companies such as Wonbangtech that they have worked with for a long time. This provides a major barrier to entry for other smaller competitors without adequate technology.

Wonbangtech is getting ready for an IPO on the KOSDAQ exchange in the next several weeks. The IPO price range is from 43,000 won to 54,300 won. The IPO base deal size is from $46 million to $58 million. According to the bankers' valuation, the expected market cap after the IPO is from 190 billion won to 241 billion won.Established in 1989, Wonbangtech is one of the leading companies in Korea for providing clean room facilities for the semiconductor/display industries and dry room facilities for the lithium ion battery, medical device, and pharmaceutical production. Currently, only two to three companies in Korea have the technology to construct large scale semiconductor/display clean room facilities. The major Korean customers including Samsung Electronics, Samsung Display, SK Hynix, and LG Display are placing orders through limited competitive bidding targeting only a few companies such as Wonbangtech that they have worked with for a long time. This provides a major barrier to entry for other smaller competitors without adequate technology. 

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In the past week, Meritz Asset Management launched the "Meritz The Women Fund (메리츠더우먼펀드)," which is the first SRI Mutual Fund aimed at investing in companies that promote women in Korea. </li>
<li>
Meritz The Women Fund is run by the Meritz Asset Management, and for this fund it receives a lot of the SRI (socially responsible investing) inputs and initial screen from the Sustinvest advisory firm.</li>
<li>We think that Meritz Asset Management is smart in marketing Korea's first women focused equity fund. It remains to be seen how much assets it can gain but it appears to be a solid move to gain increased support to improve the glass ceiling for women among Korean companies. </li>
<li>Meritz Asset Management has benchmarked numerous SRI funds globally that have focused on empowering women. Some of these well known funds include Calvert Investments, Domini Social Investments, Neuberger Berman’s NB Socially Responsive Fund, Parnassus Fund, Global Women Equity Fund, and Pax World Investments. </li>
</ul>



In the past week, Meritz Asset Management launched the "Meritz The Women Fund (메리츠더우먼펀드)," which is the first SRI Mutual Fund aimed at investing in companies that promote women in Korea. 

Meritz The Women Fund is run by the Meritz Asset Management, and for this fund it receives a lot of the SRI (socially responsible investing) inputs and initial screen from the Sustinvest advisory firm.
We think that Meritz Asset Management is smart in marketing Korea's first women focused equity fund. It remains to be seen how much assets it can gain but it appears to be a solid move to gain increased support to improve the glass ceiling for women among Korean companies. 
Meritz Asset Management has benchmarked numerous SRI funds globally that have focused on empowering women. Some of these well known funds include Calvert Investments, Domini Social Investments, Neuberger Berman’s NB Socially Responsive Fund, Parnassus Fund, Global Women Equity Fund, and Pax World Investments. 


The First SRI Mutual Fund Aimed at Investing in Korean Companies that Promote Women

South Korea

Shinsung ENG Co Ltd produces clean room equipment for semiconductor factories. The Company also provides equipment installation service.

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Shinsung Eng (104110 KS)

Wonbangtech IPO Valuation Analysis

In this insight, we provide a valuation analysis of Wonbangtech IPO. Its bookbuilding for the institutional investors starts on 8 September.

Douglas Kim

Wonbangtech IPO Preview

Wonbangtech is getting ready for an IPO on the KOSDAQ exchange in the next several weeks. The IPO price range is from 43,000 won to 54,300 won. The...

Douglas Kim

The First SRI Mutual Fund Aimed at Investing in Korean Companies that Promote Women

In the past week, Meritz Asset Management launched the "Meritz The Women Fund (메리츠더우먼펀드)," which is the first SRI Mutual Fund aimed at investing...

Douglas Kim

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