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

Enbicon - Strange Case of Dragging Down NS Shopping Shares While Raising Harim Holdings Shares

Not Acting in the Best Interests of Equity Shareholders

Jeil Holdings IPO (Part 3): NAV Valuation

Thematic (Sector/Industry)

South korea Consumer discretionary / Thematic (Sector/Industry)

<ul><li>NS Shopping represents value investing at its core.</li><li>It is an unfairly cheap stock with base case 47% upside from current levels. (Trading at 3.8x EV/EBITDA).</li><li>NS Shopping boasts the highest ROE, operating margins, sales growth, and operating profit growth among its peers.</li><li>Net cash is 35% of its market cap. </li><li>We like the company's focus on food related products for home shopping.  For the company, food related items are returned only 2-3%. This is much lower than other items such as clothing. </li><li>One of the significant trends in the Korean TV industry in the past year has been the increasing popularity of the <em>"Cook-Bang"</em> TV shows, which combine both cooking and entertainment. In particular, four cable TV shows, including "Take Care of My Refrigerator," "What Shall We Eat Today?", "Master Chef Korea," and "Mr. Baik: The Homemade Food Master" have gained rapid popularity. Increasing popularity of the food oriented TV shows also help NS Shopping as these food focused programs mention specific food items and these items often become hot selling items in NS Shopping. </li></ul>

NS Shopping represents value investing at its core.It is an unfairly cheap stock with base case 47% upside from current levels. (Trading at 3.8x EV/EBITDA).NS Shopping boasts the highest ROE, operating margins, sales growth, and operating profit growth among its peers.Net cash is 35% of its market cap. We like the company's focus on food related products for home shopping.  For the company, food related items are returned only 2-3%. This is much lower than other items such as clothing. One of the significant trends in the Korean TV industry in the past year has been the increasing popularity of the "Cook-Bang" TV shows, which combine both cooking and entertainment. In particular, four cable TV shows, including "Take Care of My Refrigerator," "What Shall We Eat Today?", "Master Chef Korea," and "Mr. Baik: The Homemade Food Master" have gained rapid popularity. Increasing popularity of the food oriented TV shows also help NS Shopping as these food focused programs mention specific food items and these items often become hot selling items in NS Shopping. 

Hyundai Home Shopping Network (057050 KS)

Lotte Tour Development Co, Ltd. (032350 KS)

Hansae Yes24 Holdings Co, Ltd. (016450 KS)

Hyundai Hy Communications & Network (126560 KS)

Value Investing at Its Core (NS Shopping - 138250KS)