In today’s briefing:
- Korea Small Cap Gem #45: Genic
- BOK’s Oct Rate Cut Playing Out as a Small/Mid-Cap Re-Rating Narrative in Korea
Korea Small Cap Gem #45: Genic
- Genic is a turnaround story. Genic is one of the largest ODM companies that make beauty face masks in Korea.
- Genic is one of the biggest suppliers of hydrogel based face masks of the Biodance brand which has been experiencing an excellent demand in global markets, including the United States.
- Despite surging growth in sales and profits, valuation multiples remain reasonable. It is trading at EV/EBITDA of 12.7x and P/E of 14.2x, based on recent prices and LTM financials.
BOK’s Oct Rate Cut Playing Out as a Small/Mid-Cap Re-Rating Narrative in Korea
- Korea’s structural value gap favors low-PBR, improving-ROE small/mid-caps; traders front-run early movers into the Oct 23 MPC, then rotate into these smaller names as the rate cut nears.
- BOK’s key MPC meetings are Oct 23 and Nov 27, with markets pricing in a 25bps cut on Oct 23 to close the policy rate gap with the Fed.
- Locals are screening for low-PBR (<0.8), ROE >8%, mid-small caps (KRW 300B–1T); 28 names fit, primed to ride the early rate-cut rally pre-MPC.
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