In today’s briefing:
- Surging Buzz Around the Potential Split of Samsung Electronics
- Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?
- Orum Therapeutics IPO Valuation Analysis
- Samsung Biologics (207940 KS): 3Q Result Beat Expectation; Guidance Raise Amid Increasing Order Book
Surging Buzz Around the Potential Split of Samsung Electronics
- We’re starting to see some local market players getting ready and setting up trades that bet on a potential split for Samsung Electronics.
- Samsung could leverage the buzz around spinning off its foundry business to split key units—foundry, memory chips, and others—into two or three separate companies at the shareholder meeting.
- Additionally, the valuation gap between Samsung Electronics and Biologics has narrowed more than it has in the last decade, making it an even more attractive opportunity.
Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?
- According to Korea Zinc, it plans to disclose the treasury shares tender offer results on 28 October.
- We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post announcement of the tender offer results.
- All in all, this M&A fight for Korea Zinc remains tight with a slight advantage to MBK/Young Poong alliance.
Orum Therapeutics IPO Valuation Analysis
- Our base case target price for Orum Therapeutics is 35,170 won per share, which is within the IPO price range of 30,000 won to 36,000 won per share.
- Given the lack of upside relative to the target price, we have a Negative View of this IPO.
- FSS has requested correction to the company’s IPO prospectus. As a result, it now appears the IPO could be delayed.
Samsung Biologics (207940 KS): 3Q Result Beat Expectation; Guidance Raise Amid Increasing Order Book
- In 3Q24, Samsung Biologics (207940 KS) reported 15% YoY revenue growth to KRW1,187B, driven by the contribution of Plant 4, the full utilization of Plants 1–3, and biosimilar products.
- The company has raised 2024 annual revenue growth guidance to 15–20% YoY from 10–15% earlier, driven by successful ramp-up of Plant 4 and favorable Fx movement.
- The company has signed record-breaking CMO contract with an Asian pharmaceutical company, thereby bringing the company’s total new contract value for the year to more than $3.3B.
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