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

Segyung Hitech Co Ltd / Equity Capital Markets

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Established in 2006, <a href="https://www.smartkarma.com/entities/segyung-hitech-co-ltd" target="_blank" data-smartkarma-citation="entities:28111:1">Segyung Hitech Co Ltd (148150 KS)</a> is a Korean smartphone components producer getting ready for an IPO in the next few weeks. Due to the explosive growth of the company's sales and profits in the past year combined with reasonable valuations, we believe there will a lot of interest in this IPO. 
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<li>The IPO price band is from 46,000 won to 52,000 won. The company's main products include Deco film, OCA, and composite materials for smartphones.</li>
<li>Segyung Hitech's sales and profit growth has been exploding higher in the past year. For example, its sales surged 151.1% YoY to 256.6 billion won in 2018 and operating profit exploded higher from 0.4 billion won in 2017 to 38.6 billion won in 2018. </li>
<li>The bankers used four companies including Intops, Innox Advanced Materials, Mobase, and SKC Kolon Pl as comparble companies to Segyung Hitech. The bankers then applied Segyung Hitech's net profit of 31.8 billion won in 2018 to the comp's average P/E multiple of 13.5x, which resulted in an implied market cap of 431 billion won (prior to IPO discount). After applying IPO discount of 26.6% - 35.1%, this resulted in an IPO price range of 46,000 won to 52,000 won. </li>
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Established in 2006, Segyung Hitech Co Ltd (148150 KS) is a Korean smartphone components producer getting ready for an IPO in the next few weeks. Due to the explosive growth of the company's sales and profits in the past year combined with reasonable valuations, we believe there will a lot of interest in this IPO. 

The IPO price band is from 46,000 won to 52,000 won. The company's main products include Deco film, OCA, and composite materials for smartphones.
Segyung Hitech's sales and profit growth has been exploding higher in the past year. For example, its sales surged 151.1% YoY to 256.6 billion won in 2018 and operating profit exploded higher from 0.4 billion won in 2017 to 38.6 billion won in 2018. 
The bankers used four companies including Intops, Innox Advanced Materials, Mobase, and SKC Kolon Pl as comparble companies to Segyung Hitech. The bankers then applied Segyung Hitech's net profit of 31.8 billion won in 2018 to the comp's average P/E multiple of 13.5x, which resulted in an implied market cap of 431 billion won (prior to IPO discount). After applying IPO discount of 26.6% - 35.1%, this resulted in an IPO price range of 46,000 won to 52,000 won. 


Segyung Hitech IPO Preview - Explosive Growth in Sales & Profits