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

Potential Changes of KOSPI 200 Index Components in the November 2021 Rebalance

Douzone Bizon: Internet Bank for SMEs and Accounts Receivables Factoring Driving Share Price Higher

Megazone Cloud: Number One Cloud MSP Provider (Unicorn) In Korea Led by Partnership with AWS

Duzonbizon: Capitalizing on the Growth of Cloud Based CRM Software in Korea

Duzonbizon: Cloud-Based Software Providing an Edge Amidst COVID-19 Carnage

Duzonbizon - Time to Take Profits; Company Buying a Big Building Destroying Value

Digital Finance in Korea: New Laws Coming in 2020 & Credit Bureau Industry

Asian E-Wallets Plant Their Flags: An In-Depth Analysis of the Top-10 Players

Equity Bottom-Up

<p>In this insight, we provide an updated analysis on <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a>, a leading independent SaaS and cloud services provider in Korea, including valuations. We also discuss two recent events that could impact the company.</p><ul>
<li>First, includes Bain Capital acquiring Chairman's Kim's 4.8% stake in the company to become one of the top shareholders of the company on 7 March. </li>
<li>Second, Coupang is getting ready to complete an IPO this week. Coupang could become a major competitor or it could be a potential acquirer of Douzone Bizon's cloud business. </li>
</ul><div class="content-highlight"><p>Valuations of the company are not cheap and the stock has been consolidating sideways between 100,000 won and 120,000 won from May 2020 to March 2021. The stock is currently trading at 45.2x P/E (2021E) and 7.0x P/B (2021E), which are not cheap. These valuation multiples are slightly lower than the historical average valuation multiples from 2018 to 2020 but higher than the average valuation multiples over a longer range (2015 to 2020). Overall, <a href="https://www.smartkarma.com/entities/douzone-bizon-co-ltd" target="_blank" data-smartkarma-citation="entities:20161:1" rel="noopener">Douzone Bizon (012510 KS)</a> appears to be fairly valued at current levels.</p></div>

In this insight, we provide an updated analysis on Douzone Bizon (012510 KS), a leading independent SaaS and cloud services provider in Korea, including valuations. We also discuss two recent events that could impact the company.
First, includes Bain Capital acquiring Chairman's Kim's 4.8% stake in the company to become one of the top shareholders of the company on 7 March. 
Second, Coupang is getting ready to complete an IPO this week. Coupang could become a major competitor or it could be a potential acquirer of Douzone Bizon's cloud business. 
Valuations of the company are not cheap and the stock has been consolidating sideways between 100,000 won and 120,000 won from May 2020 to March 2021. The stock is currently trading at 45.2x P/E (2021E) and 7.0x P/B (2021E), which are not cheap. These valuation multiples are slightly lower than the historical average valuation multiples from 2018 to 2020 but higher than the average valuation multiples over a longer range (2015 to 2020). Overall, Douzone Bizon (012510 KS) appears to be fairly valued at current levels.

Douzone Bizon - Bain Capital Buys Chairman's Stake