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

Equity Capital Markets

<ul><li>E-Land Retail is expected to complete its IPO in 2Q17/3Q17. It is expected to be one of the largest consumer IPOs in Korea in 2017. E-Land Retail generated sales of 2.9 trillion won and net profit of 143 billion won in 2015.</li><li>Its business is broken down into mostly retail (department and outlet stores), restaurants, hotels, &amp; leisure, and other services.</li><li>From 2012 to 2015, E-Land Retail experienced the strongest growth in sales and operating profit versus its competitors. For example, E-Land Retail's sales increased at a CAGR rate of 6.8% from 2012 to 2015 versus its competitors such as Lotte Shopping and Shinsegae which experienced slower growth rate during this period. E-Land Retail's operating profit increased at a CAGR rate of 9.9% from 2012 to 2015 versus its peers such as Lotte Shopping and Hyundai Dept Store that experienced declining operating profit during this period.</li><li><strong>What is E-Land Retail doing right? </strong>One of the key reasons why we believe the E-Land Retail has been enjoying stronger growth in sales and profits than its peers is its focus on more price conscious consumers. <strong>E-Land Retail has many loyal consumers for its outlets business</strong>, which is catered to more price conscious consumers. Given the weak consumption patterns in Korea in the past several years, many Koreans have been shopping less at higher end department stores while shopping more on mobile/PC online shopping sites as well as at outlets.</li></ul>

E-Land Retail is expected to complete its IPO in 2Q17/3Q17. It is expected to be one of the largest consumer IPOs in Korea in 2017. E-Land Retail generated sales of 2.9 trillion won and net profit of 143 billion won in 2015.Its business is broken down into mostly retail (department and outlet stores), restaurants, hotels, &amp; leisure, and other services.From 2012 to 2015, E-Land Retail experienced the strongest growth in sales and operating profit versus its competitors. For example, E-Land Retail's sales increased at a CAGR rate of 6.8% from 2012 to 2015 versus its competitors such as Lotte Shopping and Shinsegae which experienced slower growth rate during this period. E-Land Retail's operating profit increased at a CAGR rate of 9.9% from 2012 to 2015 versus its peers such as Lotte Shopping and Hyundai Dept Store that experienced declining operating profit during this period.What is E-Land Retail doing right? One of the key reasons why we believe the E-Land Retail has been enjoying stronger growth in sales and profits than its peers is its focus on more price conscious consumers. E-Land Retail has many loyal consumers for its outlets business, which is catered to more price conscious consumers. Given the weak consumption patterns in Korea in the past several years, many Koreans have been shopping less at higher end department stores while shopping more on mobile/PC online shopping sites as well as at outlets.

ELand Retail

E-Land Retail IPO Preview: Part I