In today’s briefing:
- SK Square: Updated NAV Valuation Post Recent Share Price Decline
- SM Entertainment: Share Cancellation and the Launch of a New British Band – Dear Alice
- DB Hitek: Buying a Golf Course Overshadows Corporate Value Up Efforts
SK Square: Updated NAV Valuation Post Recent Share Price Decline
- Our NAV analysis of SK Square suggests NAV of 15.6 trillion won or 115,605 won per share, representing 48% higher than current share price.
- SK Square’s market cap is only 39% of SK Square’s stake in SK Hynix. SK Square’s share price has declined by 27% since reaching its recent peak on 11 July.
- SK Square had excellent results in 2Q 2024, driven by improving results of its affiliates including SK Hynix.
SM Entertainment: Share Cancellation and the Launch of a New British Band – Dear Alice
- In this insight, we discuss the recent share cancellation at S.M. Entertainment, valuations, and the launch of a new British boy band in August 2024.
- Dear Alice boy band will start its promotion with the broadcast of “Made in Korea: The K-Pop Experience” on BBC One and BBC iPlayer on 17 August.
- We are cautiously positive on Dear Alice band. Unlike most aspiring boy bands, Dear Alice has a HUGE advantage of launching the band on the BBC through a TV show.
DB Hitek: Buying a Golf Course Overshadows Corporate Value Up Efforts
- DB Hitek’s investment in a golf course operating company is a poor investment, one that destroys shareholder value.
- Most investors would rather have DB Hitek increase shareholder returns through share buybacks/cancellations and dividends as well as invest in its core semiconductor business rather then buy a golf course.
- Given DB Inc’s lack of cash, there is a growing possibility that it will use the proceeds from selling its DB World shares to increase its stake in DB Hitek.
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