Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

"We Will Take Care of You Wherever You Are" - Samsung India

2017 Korea M&A Market Outlook - What's For Sale?

2016 Korea M&A Market Outlook - What's For Sale?

Equity Bottom-Up

<ul>
<li>The three key catalysts of <a href="https://www.smartkarma.com/entities/cheil-worldwide-inc" target="_blank" data-smartkarma-citation="entities:506:1" rel="noopener">Cheil Worldwide (030000 KS)</a> include a) Samsung's Roll-Out of New 5G Smartphones; b) Tokyo Summer Olympics and National Assembly General Election in Korea; and c) Excellent growth of digital ad spend. 
</li>
<li>
<a href="https://www.smartkarma.com/entities/506" target="_blank" data-smartkarma-citation="entities:506:1" rel="noopener">Cheil Worldwide Inc (030000 KS)</a> is the advertising agency of the Samsung Group. Cheil Worldwide is the largest advertising agency in Korea and the 19th largest advertising agency globally in terms of 2018 revenues. Its major customers include the Samsung Group, Adidas, Coca-Cola, GE, General Motors, and Microsoft.</li>
<li>The consensus net profit estimate in 2021 is 171 billion won. Using the average historical P/E multiple in the past four years (17.5x) applying to the estimated net profit of 171 billion won in 2021, this would suggest an implied market cap of 3.0 trillion won (26,020 won per share), which would represent a 22% upside from current levels. Therefore, given the reasonably attractive upside, we have a positive view of <a href="https://www.smartkarma.com/entities/cheil-worldwide-inc" target="_blank" data-smartkarma-citation="entities:506:1" rel="noopener">Cheil Worldwide (030000 KS)</a>. </li>
</ul>


The three key catalysts of Cheil Worldwide (030000 KS) include a) Samsung's Roll-Out of New 5G Smartphones; b) Tokyo Summer Olympics and National Assembly General Election in Korea; and c) Excellent growth of digital ad spend. 


Cheil Worldwide Inc (030000 KS) is the advertising agency of the Samsung Group. Cheil Worldwide is the largest advertising agency in Korea and the 19th largest advertising agency globally in terms of 2018 revenues. Its major customers include the Samsung Group, Adidas, Coca-Cola, GE, General Motors, and Microsoft.
The consensus net profit estimate in 2021 is 171 billion won. Using the average historical P/E multiple in the past four years (17.5x) applying to the estimated net profit of 171 billion won in 2021, this would suggest an implied market cap of 3.0 trillion won (26,020 won per share), which would represent a 22% upside from current levels. Therefore, given the reasonably attractive upside, we have a positive view of Cheil Worldwide (030000 KS). 


Cheil Worldwide

Cheil Worldwide: Three Key Catalysts