In today’s briefing:
- Concerns About A Major Accounting Fraud at Kakao Mobility
- SK Hynix. DRAM To The Rescue
- End of Mandatory Lock-Up Periods for 48 Companies in Korea in November 2023
- Asicland IPO Book Building Results Analysis
Concerns About A Major Accounting Fraud at Kakao Mobility
- It was reported in numerous local media in Korea that FSS is investigating Kakao Mobility for a potential accounting fraud.
- There are suspicions that Kakao Mobility may have artificially inflated its sales from 2020 to 2023 to enhance the value of the company prior to its IPO listing.
- Given that the regulators are unlikely to make a final decision on this matter until next year, this is likely to be negative on both Kakao Mobility and Kakao Corp.
SK Hynix. DRAM To The Rescue
- SK Hynix reported Q323 revenues of 9.066 trillion won, up 24% QoQ but still down 17% YoY
- Net income was -2.185 trillion won, a 27% improvement on the losses in the prior quarter.
- While DRAM has turned profitable, NAND remains stubbornly loss making and is likely to remain so for the foreseeable future
End of Mandatory Lock-Up Periods for 48 Companies in Korea in November 2023
- We discuss the end of the mandatory lock-up periods for 48 stocks in Korea in November 2023, among which 6 are in KOSPI and 42 are in KOSDAQ.
- These 48 stocks on average could be subject to further selling pressures in November and could underperform relative to the market.
- Among these 48 stocks, top five market cap stocks include Doosan Robotics, Fadu, CanariaBio, Enchem, and Gigavis.
Asicland IPO Book Building Results Analysis
- Asicland completed an excellent IPO book building results. IPO price has been determined at 25,000 won which is 17% higher than the high end of the IPO price range.
- A total of 1,906 institutional investors participated in this IPO book building results. The IPO demand ratio was 490 to 1. Asicland IPO will start trading on 13 November.
- Our base case valuation of Asicland is implied market cap of 434 billion won or target price of 40,571 won per share, which is 62% higher than the IPO price.
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