In today’s briefing:
- Korea Finally Offers Reliable Data Channel on Companies with Improved Dividend Procedures
- Ecopro Materials: Reduces IPO Price Range
- EcoPro Materials IPO: The Bear Case
Korea Finally Offers Reliable Data Channel on Companies with Improved Dividend Procedures
- The Obligatory Corporate Governance Report Disclosure System will stand as the only source for furnishing trustworthy data on the proportion of listed companies that have genuinely adopted enhanced dividend procedures.
- From a dividend strategy perspective, the companies of primary interest for strategic trading are predominantly those falling under the scope of this disclosure obligation.
- Next year, it’s anticipated that with dependable data, we will have the means to craft dividend strategies aimed at this specific group.
Ecopro Materials: Reduces IPO Price Range
- Ecopro Materials reduced the upper end of the IPO price range from 46,000 won to 44,000 won.
- The bankers reduced the IPO discount, EV/EBITDA valuation multiple, and outstanding shares.
- We maintain our Bearish view of the Ecopro Materials IPO. Our base case valuation of 37,436 won per share is towards to lower end of the IPO price range.
EcoPro Materials IPO: The Bear Case
- EcoPro Materials (ECO123 KS) is a leading player in the electrode material industry. It is seeking to raise up to US$477 million in a KRX IPO.
- In EcoPro Materials IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on weakening sector market sentiment, margin pressure likely to persist, cash burn, elevated leverage and high related-party transactions.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
