Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Korea M&A Spotlight: Who Will Acquire Tailim Packaging & Tailim Paper?

Equity Capital Markets

<ul>
<li>Our base case valuation of Tailim Paper is target price of 19,692 won, which is at the low end of the IPO price range. We would pass on this IPO. </li>
<li>Our target price of 19,692 won is based on 5.8x EV/EBITDA using 2021 EBITDA. The EV/EBITDA multiple of 5.8x is at a 40% premium to the comps' average. </li>
<li>Tailim Paper has higher sales growth rate, operating margins, and ROE than its peers. However, it has a weaker balance sheet than its peers. </li>
</ul>


Our base case valuation of Tailim Paper is target price of 19,692 won, which is at the low end of the IPO price range. We would pass on this IPO. 
Our target price of 19,692 won is based on 5.8x EV/EBITDA using 2021 EBITDA. The EV/EBITDA multiple of 5.8x is at a 40% premium to the comps' average. 
Tailim Paper has higher sales growth rate, operating margins, and ROE than its peers. However, it has a weaker balance sheet than its peers. 


Tailim Paper

Tailim Paper IPO Valuation Analysis