Korea Discovery Forum
Disclosures & Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it. Issuer of report: The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch View HSBC Global Research at: https://www.research.hsbc.com HSBC’s Seventh Annual Korea Discovery Forum 15 June – Hong Kong 16 June – Singapore 12 leading companies participating HSBC is pleased to invite you to the Seventh Annual Korea Discovery Forum to be held in Hong Kong on Wednesday, 15 June 2016 and Singapore on Thursday, 16 June 2016. During the two days, you will have the opportunity to meet with analysts and portfolio managers from large institutional fund managers and hedge funds. The format of the event will be one-on-one and small group meetings. We look forward to your participation. 13 June 2016 Brian Cho* Head of Research, Korea The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch briancho@kr.hsbc.com +822 3706 8750 *Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations Korea Discovery Forum EQUITIES KOREA 15-16 June 2016 EQUITIES KOREA 13 June 2016 2 Companies 3 Boditech Med (206640 KS) 4 CJ Korea Express (000120 KS) 5 Cosmax (192820 KS) 6 Cowell Plastic Surgery 7 CrucialTec (114120 KS) 8 Daelim Industrial (000210 KS) 9 Humedix (200670 KS) 11 ILJIN Materials (020150 KS) 13 Kolon Corp (002020 KS) 14 Nutri Biotech (222040 KS) 15 Showbox (086980 KS) 16 Viatron Technologies (141000 KS) 17 Disclosure appendix 20 Disclaimer 23 In this document HSBC may comment on the potential economic impact dependent on the outcome of the UK Referendum. HSBC is not taking a political position and this document and the information contained herein are not intended to promote or procure, or otherwise be in connection with promoting or procuring, a particular outcome in relation to the question asked in the UK Referendum. Contents 3 EQUITIES KOREA 13 June 2016 Companies EQUITIES KOREA 13 June 2016 4 Boditech Med (206640 KS) Business description Founded in November 1998, Boditech Med Inc. develops and manufactures in-vitro diagnostics analysers and reagents. Its main products are ichroma Reader – a portable fluorescence scanning instrument for measuring the concentration of target analytes in human blood, urine, and other specimens and hemochroma PLUS – a battery-powered hand-held device to measure the concentration of total hemoglobin in blood. The company is leading a paradigm shift in the in-vitro diagnostics industry with its whole blood-based technology. Key points With only one drop of blood from the fingertip, saliva, and urine samples, Boditech Med’s diagnostic system shows quantitative test results, using highly sensitive diagnostic analysers within 10 minutes. On 2 March 2016, Boditech Med acquired Immunostics, a US in-vitro diagnostic company to penetrate the US market. Established in 1970, Immunostics specialises in developing and manufacturing rapid point-of-care diagnostic testing products such as FOD tests, pregnancy tests and infectious disease. The company has recorded revenue of approximately USD8m in the last five years. Boditech Med became the first Korean diagnostic company to have meaningful sales exposure in the top 3 major in-vitro diagnostic markets: the US, China and Japan. NOT RATED SHARE PRICE (KRW) (as of 7 June 2016 ) 32,100.00 MARKET DATA Market cap (KRWbn) 677.4 Free float 53.86% Market cap (USDm) 585.2 RIC 206640.KQ Source: Company data, Thomson Reuters Datastream, Bloomberg Brian Cho* Analyst The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch briancho@kr.hsbc.com +822 3706 8750 * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations Financial forecasts Year ending Dec (KRWbn) 2015 2016 2017e 2018e Key ratios 2015 2016 2017e 2018e Revenue 39.821 54.555 73.650 97.954 P/E (x) NA 50.61 41.02 NA EBITDA 17.879 22.399 28.488 P/B (x) 13.00 12.93 9.83 NA EBIT 12.355 NA NA NA ROE (%) -6.01 NA NA NA Net Income -2.279 14.000 17.000 21.000 ROA (%) -4.80 NA NA NA EPS (KRW) -3,510.000 659.000 813.000 1,014.000 Dividend yield (%) 0.00 NA NA NA Source: Company data, Bloomberg consensus estimates; NA – Not available 5 EQUITIES KOREA 13 June 2016 CJ Korea Express (000120 KS) Business description CJ Korea Express, established in 1930, is the logistics arm of the CJ Group and has 78 overseas logistics bases in 22 countries. The company’s business divisions include Contract Logistics (CL), Parcel Delivery, and Global Business. Key points Contract Logistics (CL) involves overland transport as well as warehousing and distribution. The company is capable of transporting 35,000 tons of general cargo and 1,000TEU of containers. The company a
