Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Seojin System IPO Part 2 - History, Strength Areas & Business Prospect

Seojin System IPO Part 3 - IPO Bookbuilding Results

Equity Capital Markets

Seojin System Co, Ltd. / Equity Capital Markets

<p>Seojin System is basically an all-round player in the tech industry. It makes many inexpensive and less-significant metal components used in various tech products. It was founded in 1996, and in 20 years, it has become a US$150mil sales company with 7,400 employees. It has three major business areas: metal cases for mobile phones, metal frame/cases for telecom equipment and metal body and power supply for semiconductor equipment. In addition, the company recently started making a meaningful amount of revenue from ESS and also it is currently aiming to enter the automotive component market, which it considers as the next growth engine business. The company is planning to raise ₩30bil (US$26mil) from this IPO. This is a pretty small IPO as the company's market cap will be about ₩135bil (US$120mil). But it has achieved a super sales growth in the last two years and also it is expected to achieve another 50% sales growth this year with a mid 10% OPM. That is, valuation wise, it may offer a nice upside potential even if we factor in its not-so-glamorous business nature. So, I did some digging on this IPO and below is what I found. </p>

Seojin System is basically an all-round player in the tech industry. It makes many inexpensive and less-significant metal components used in various tech products. It was founded in 1996, and in 20 years, it has become a US$150mil sales company with 7,400 employees. It has three major business areas: metal cases for mobile phones, metal frame/cases for telecom equipment and metal body and power supply for semiconductor equipment. In addition, the company recently started making a meaningful amount of revenue from ESS and also it is currently aiming to enter the automotive component market, which it considers as the next growth engine business. The company is planning to raise ₩30bil (US$26mil) from this IPO. This is a pretty small IPO as the company's market cap will be about ₩135bil (US$120mil). But it has achieved a super sales growth in the last two years and also it is expected to achieve another 50% sales growth this year with a mid 10% OPM. That is, valuation wise, it may offer a nice upside potential even if we factor in its not-so-glamorous business nature. So, I did some digging on this IPO and below is what I found. 

Seojin System IPO Part 1 - Schedule, Financials & Valuation