In this briefing:
1. Uber IPO: Its Sprawling Empire And Battle Lines (Part 3)
Although Uber aims to be an Amazon for transport, we will focus on the ride-hailing market in part 3 of this series. Here, we try to answer the following questions:
- What are the indicative ride-hailing market shares of Uber vs Lyft in North America?
- What is Uber’s share in other key countries?
- What are the lawsuits investors should watch out for?
- How do Uber’s revenue drivers compare with Lyft’s?
- What are the timelines and key figures for both companies’ IPOs?
This is the third note in a series about the expected 2019 IPO of global ride-hailing giant Uber Technologies (0084207D US) and Lyft. Please read the earlier two pieces in the series for better contexts:
Uber IPO Preview: Its Sprawling Empire and Battle Lines (Part 1) written by me.
Uber IPO Preview: Fast-Growing Uber Eats Has Become a Material Part of Uber (Part 2) written by Daniel Hellberg
2. Chunbo Co. IPO Preview
- Chunbo Co Ltd (278280 KS) is a provider of fine chemical materials in Korea, and it is expected to complete its IPO in January 2019. Its chemical materials are used in numerous industries including the display, semiconductors, rechargeable batteries, and pharmaceutical.
- The bankers used nine comparable companies, including Sk Materials (036490 KS), Foosung Co Ltd (093370 KS), and Iljin Materials (020150 KS), to value Chunbo Co Ltd (278280 KS). The bankers used the annualized net profit of these companies from 1Q-3Q18 in their valuation analysis. The average P/E multiple of the comps were 25.3x. The bankers then applied Chunbo’s annualized net profit of 19.8 billion won from 1Q18 to 3Q18 and applied the P/E multiple of 25.3x to derive an implied market cap of 501.3 billion won. After applying an IPO discount of 20.2% to 30.2%, the bankers derived an IPO range of 35,000 to 40,000 won.
- The company has a consistent record of generating solid growth in sales and profits in the past few years. The company’s sales increased 18.4% CAGR from 2014 to 2017. Its operating margin averaged 21% from 2014 to 3Q18.
