In today’s briefing:
- Trading Strategy of Shift Up on the First Day of IPO
- Shinsung Tongsang (005390 KS)’s Cheeky Delisting Offer
- Doosan Enerbility: A Key Beneficiary of Potential Nuclear Power Projects Win in the Czech Republic
Trading Strategy of Shift Up on the First Day of IPO
- In this insight, we discuss a trading strategy for Shift Up which starts trading on 11 July. Shift Up is one of the most anticipated IPOs in Korea this year.
- Our base case (6 months – 1 year) target price of Shift Up is 95,510 won, which is 59% higher than the IPO price.
- We recommend investors to take some profits (about 50% of invested capital) if the share price shoots higher by 100% or more from the IPO price on the first day.
Shinsung Tongsang (005390 KS)’s Cheeky Delisting Offer
- Last month, apparel play Shinsung Tongsang (005390 KS) announced a Tender Offer from Canaan Co for 22.02% of shares out, at ₩2,300/share, a 15.84% premium to undisturbed.
- Canaan Co. and related parties hold a combined stake of 77.68%, which increases to 99.7% IF the Offer is successful. Canaan needs 95% to force delisting.
- Shinsung’s share price has languished over the past 12 months or so, despite improving market share and earnings. Getting to 95% might be a stretch. In need of a bump?
Doosan Enerbility: A Key Beneficiary of Potential Nuclear Power Projects Win in the Czech Republic
- The Czech Republic government is in the final stages of selecting companies to build four nuclear power plants which could cost nearly US$30 billion.
- A Korean consortium including KHNP, Doosan Enerbility, KEPCO E&C, and Daewoo E&C is competing mainly against EDF, a French government owned electric utility company.
- If the KHNP consortium is able to win this new order, Doosan Enerbility will be a key beneficiary as it will supply the nuclear reactors and steam generators.
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