In today’s briefing:
- Celltrion Merger: Appraisal Rights & Passive Flows
- Hanwha Corp: Updated NAV Analysis – Defense Assets Undervalued
- Coupang Inc.: Initiation of Coverage – Business Strategy
Celltrion Merger: Appraisal Rights & Passive Flows
- The Appraisal rights exercise period ends on 13 November. If the NPS and other large shareholders exercise their rights in Celltrion Inc (068270 KS), the merger could be in trouble.
- Both stocks are trading close to their exercise price and could be supported due to the companies buying back their shares.
- There will be passive flows from local and global trackers and there does not appear to be pre-positioning. That is likely due to the risk of potential merger cancellation.
Hanwha Corp: Updated NAV Analysis – Defense Assets Undervalued
- We provide an updated NAV analysis of Hanwha Corporation which is a holding company of the Hanwha Group. We argue that Hanwha Corp’s shares are trading excessively below its NAV.
- Hanwha Corp is down 10.5% YTD, underperforming Hanwha Aerospace (up 54.2% YTD). Hanwha Corp’s stake in Hanwha Aerospace is worth 1.9 trillion won (14% higher than Hanwha Corp’s market cap).
- Our NAV analysis of Hanwha Corporation (000880 KS) suggests NAV of 2.3 trillion won or NAV per share of 30,203 won which is 33% higher than current price.
Coupang Inc.: Initiation of Coverage – Business Strategy
- This is our first report on South Korean e-commerce giant, Coupang Inc.
- The company delivered an all-around beat in the most recent quarterly result.
- The company observed an acceleration in revenue and active customer growth, particularly noteworthy for the rapid acceleration in active customer numbers.
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