Elevator Pitch
I like Korea-listed internet conglomerate Naver Corporation (NHNCF) [035420:KS] as a proxy for the growing e-commerce market in South Korea, as its service offerings covering the entire online purchase process for consumers. The company's strategy of incubating in-house start-ups, by spinning off business units as independent entities and subsequently listing them in the public equity markets, is key to unlocking the value of its young and growing business divisions and narrowing the valuation discount assigned to an internet conglomerate like Naver Corporation.
My sum-of-the-parts valuation of KRW188,700 for Naver Corporation implies