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

Tender Offer and Taking Private of Shinsegae E&C by E Mart

Shinsegae E&C (034300 KS)'s Delisting Offer

Equity Bottom-Up

Shinsegae Eng & Construction / Equity Bottom-Up

We have a positive view of Shinsegae E&amp;C. We believe that <a href="https://www.smartkarma.com/entities/shinsegae-eng-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:11972:1" rel="noopener">Shinsegae Eng &amp; Construction Co., Ltd. (034300 KS)</a> will be one of the biggest beneficiaries of the construction of the <a href="http://www.koreaherald.com/view.php?ud=20190301000052" target="_blank" rel="noopener">$4 billion theme park</a> in Hwaseong, Korea. We are including this stock in our model portfolio. In 2019 and 2020, Shinsegae E&amp;C will finalize the design and the initial groundwork for this construction project. The actual construction will likely start in 2021. It is reasonable that from 2021 to 2025, Shinsegae E&amp;C could derive at least 300 billion won to 500 billion won in annual sales from this Hwaseong project, which would imply nearly 30-50% of the company's total sales in 2018. Once this huge theme park is built, it will be one of the largest theme parks in Korea. This mammoth project has been in discussion for more than 12 years since 2007, with the project struggling to get started. A key turning point was at the end of February 2019, when the Shinsegae Property Consortium (consisting of Shinsegae Property and Shinsegae E&amp;C) was picked as a preferred bidder to operate this theme park.

We have a positive view of Shinsegae E&amp;C. We believe that Shinsegae Eng &amp; Construction Co., Ltd. (034300 KS) will be one of the biggest beneficiaries of the construction of the $4 billion theme park in Hwaseong, Korea. We are including this stock in our model portfolio. In 2019 and 2020, Shinsegae E&amp;C will finalize the design and the initial groundwork for this construction project. The actual construction will likely start in 2021. It is reasonable that from 2021 to 2025, Shinsegae E&amp;C could derive at least 300 billion won to 500 billion won in annual sales from this Hwaseong project, which would imply nearly 30-50% of the company's total sales in 2018. Once this huge theme park is built, it will be one of the largest theme parks in Korea. This mammoth project has been in discussion for more than 12 years since 2007, with the project struggling to get started. A key turning point was at the end of February 2019, when the Shinsegae Property Consortium (consisting of Shinsegae Property and Shinsegae E&amp;C) was picked as a preferred bidder to operate this theme park.

Shinsegae E&C: The Biggest Beneficiary of the $4 Billion Theme Park Construction In Hwaseong, Korea