In today’s briefing:
- Positioning for the Timing of HLB, the Latest Target in the KOSDAQ Exodus
- KOSPI200 Index Rebalance Preview: Increasing Number of Changes in December
- Doosan Robotics IPO – The Positives – More than Doubled Its Revenue
- Doosan Robotics IPO Valuation Analysis
- Millie’s Library IPO Analysis
- Doosan Robotics IPO – The Negatives – But Losses Continue to Widen
Positioning for the Timing of HLB, the Latest Target in the KOSDAQ Exodus
- HLB’s process of selecting a lead underwriter for the KOSPI listing has been witnessed in Yeouido.
- The price impact becomes most evident on the board approval date as the point at which this impact is most pronounced is substantially accelerated due to the market’s learning effect.
- There is a strong likelihood that HLB will have its board decision by mid-September, necessitating our preparation for a position setup targeting this timing.
KOSPI200 Index Rebalance Preview: Increasing Number of Changes in December
- Nearly two-thirds of the way through the review period, we see nine potential changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the December rebalance.
- The potential adds are dominated by the Materials sector while the potential deletions are mainly from the Consumer Discretionary sector.
- The impact on the potential inclusion ranges from 0.14-12 days of ADV while the impact on the potential deletions varies from 3.1-30 days of ADV.
Doosan Robotics IPO – The Positives – More than Doubled Its Revenue
- Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO.
- Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module
- In this note, we will talk about the positive aspects of the deal.
Doosan Robotics IPO Valuation Analysis
- Our base case valuation per share of Doosan Robotics is 42,826 won, which is 65% higher than the high end of the IPO valuation range.
- We estimate Doosan Robotics to generate sales of 61.7 billion won (up 37.2% YoY) in 2023 and 97.7 billion won (up 58.2% YoY) in 2024.
- If Doosan Robotics is compared to Fanuc, Doosan Robotics’ valuation would be much lower. However, one could argue that Doosan Robotics should have higher valuation than Rainbow Robotics.
Millie’s Library IPO Analysis
- Millie’s Library is trying to complete its IPO again in September 2023, after a failed attempt in November 2022. The IPO price range is from 20,000 won to 23,000 won.
- Founded in 2016, Millie’s Library is a reading platform company that introduced the first monthly e-book subscription service in Korea in October 2017.
- Our valuation analysis suggests base case target price of 31,769 won per share, which is 38% higher than the high end of the IPO price range of 23,000 won.
Doosan Robotics IPO – The Negatives – But Losses Continue to Widen
- Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO.
- Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
- In this note, we will talk about the not-so-positive aspects of the deal.
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