In today’s briefing:
- Target May 15th for LONG Youlchon Chemical with Dongkuk Steel’s Split Approval
- Manyo Factory IPO Preview
- NAVER Z: Owner of The Fastest Growing Avatar Platform Zepeto
- Shinpoong Pharmaceutical (019170 KS): Widening Operating Loss; COVID Drug Loses Steam
Target May 15th for LONG Youlchon Chemical with Dongkuk Steel’s Split Approval
- Through the regular rebalancing, Kum Yang and Cosmo Chemical will be included in KOSPI 200, and Youlchon Chemical will be included as an ad-hoc change due to Dongkuk Steel’s deletion.
- We should prepare for an aggressive long position on Youlchon Chemical from a day trading perspective, targeting May 15th, the day after Dongkuk Steel’s general meeting.
- If the meeting is scheduled for the morning, we should consider entering the position in the afternoon of the 12th.
Manyo Factory IPO Preview
- Manyo Factory is well known for its functional skin care products made from naural ingredients. Its products have been enjoying excellent sales in Japan and Korea.
- Given the company’s superior sales growth and operating margins than its peers combined with the large IPO discount, there is likely to be a strong interest in Manyo Factory IPO.
- Unlike other major Korean cosmetic companies with poor sales and operating profit in the past three years, Manyo Factory experienced excellent growth of its sales and profits in this period.
NAVER Z: Owner of The Fastest Growing Avatar Platform Zepeto
- Naver Z Corporation, a subsidiary of NAVER Corporation, focuses on developing VR and AR technologies. The company can be regarded as one of the promising players in the Metaverse market.
- The company’s flagship product, ZEPETO, has become particularly popular among younger users and has been downloaded over 300 million times worldwide.
- Naver Z (1838597D KS) ‘s VR and AR technologies have a variety of use cases, and the company has worked with businesses and brands in a variety of industries.
Shinpoong Pharmaceutical (019170 KS): Widening Operating Loss; COVID Drug Loses Steam
- Shinpoong Pharmaceutical (019170 KS) recorded operating loss of KRW34 billion in 2022 from operating loss of KRW14 billion in 2021 and an operating profit of KRW8 billion in 2020.
- Shinpoong is investing heavily on R&D, which is taking a toll on its financial health. During 2022, R&D expenses accounted for 21% of total revenue, up from 16% in 2021.
- The company is revising phase 3 trial plan for anti-malarial drug Pyramax as COVID-19 treatment. Even if Pyramax succeeds to get approval, the drug is expected to have limited uptake.
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