Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<p>In the past three weeks, <a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation (096770 KS)</a> added 5.5 trillion won ($4.6 billion) in value so that its market cap has risen to 17.0 trillion won. Its share price has surged 48% during this 3 week period. We provided insight on this name <a href="https://www.smartkarma.com/insights/sk-iet-ipo-a-big-positive-catalyst-on-sk-innovation" target="_blank" data-smartkarma-citation="insights:41431" rel="noopener">SK IET IPO - A Big Positive Catalyst on SK Innovation</a> on July 22nd. This is an update on this name, given the sharp appreciation of the share price in the past three weeks. </p><div class="content-highlight"><p>The<a href="https://pulsenews.co.kr/view.php?year=2020&amp;no=699480" target="_blank" rel="noopener"> local media</a> have mentioned that the value of SK IET could be about 4 trillion won to 5 trillion won or more. The fact that SK Innovation's value has surged by nearly 5.5 trillion won in about 3 weeks suggests that "Mr. Market" has quickly adjusted the value of SK Innovation to reflect its ownership of SK IET. Given the sharp appreciation of SK Innovation shares in the past three weeks, we believe it makes sense to take some profits on this name. </p></div><p>The U.S. International Trade Commission (ITC) made a preliminary ruling in LG Chem’s favor and the final verdict is expected in <strong>October 2020.</strong> There are three main scenarios including a) a complete ban of SK Innovation in the rechargeable battery business in the U.S., b) a <a href="https://www.koreatimes.co.kr/www/tech/2020/07/419_292932.html" target="_blank" rel="noopener">sizeable fine/settlement payment</a> for SK Innovation, or c) a win for SK Innovation with no breach of commercial secrets.</p>

In the past three weeks, SK Innovation (096770 KS) added 5.5 trillion won ($4.6 billion) in value so that its market cap has risen to 17.0 trillion won. Its share price has surged 48% during this 3 week period. We provided insight on this name SK IET IPO - A Big Positive Catalyst on SK Innovation on July 22nd. This is an update on this name, given the sharp appreciation of the share price in the past three weeks. The local media have mentioned that the value of SK IET could be about 4 trillion won to 5 trillion won or more. The fact that SK Innovation's value has surged by nearly 5.5 trillion won in about 3 weeks suggests that "Mr. Market" has quickly adjusted the value of SK Innovation to reflect its ownership of SK IET. Given the sharp appreciation of SK Innovation shares in the past three weeks, we believe it makes sense to take some profits on this name. The U.S. International Trade Commission (ITC) made a preliminary ruling in LG Chem’s favor and the final verdict is expected in October 2020. There are three main scenarios including a) a complete ban of SK Innovation in the rechargeable battery business in the U.S., b) a sizeable fine/settlement payment for SK Innovation, or c) a win for SK Innovation with no breach of commercial secrets.

SK Innovation - 5.5 Trillion Won in Higher Value in Past 3 Weeks

<ul>
<li>In this insight, we discuss the sharp share price declines of rechargeable battery related stocks in Korea so far in 2024. </li>
<li>The top 20 market cap rechargeable battery related stocks in Korea are down on average 15.9% YTD, underperforming KOSPI which is down 6.7% in the same period.</li>
<li>Many rechargeable battery related names in Korea continue to have lofty valuations. The 20 rechargeable battery names are trading at median P/E of 79.7x in 2023 and 39x in 2024.</li>
</ul>


In this insight, we discuss the sharp share price declines of rechargeable battery related stocks in Korea so far in 2024. 
The top 20 market cap rechargeable battery related stocks in Korea are down on average 15.9% YTD, underperforming KOSPI which is down 6.7% in the same period.
Many rechargeable battery related names in Korea continue to have lofty valuations. The 20 rechargeable battery names are trading at median P/E of 79.7x in 2023 and 39x in 2024.


A Sharp Downturn in Price Momentum of Rechargeable Battery Stocks in Korea in January 2024

South Korea

SK IE Technology Co., Ltd operates as a material solution provider. The Company provides information material solutions, electronic materials solutions, and other products. SK IE Technology conducts businesses across worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SK IE Technology (361610 KS)

SK Innovation - 5.5 Trillion Won in Higher Value in Past 3 Weeks

In the past three weeks, SK Innovation (096770 KS) added 5.5 trillion won ($4.6 billion) in value so that its market cap has risen to 17.0 trillion...

Douglas Kim

A Sharp Downturn in Price Momentum of Rechargeable Battery Stocks in Korea in January 2024

In this insight, we discuss the sharp share price declines of rechargeable battery related stocks in Korea so far in 2024.

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)