In today’s briefing:
- Sizing up September’s KOSPI Size Index Migration Names
- Korea Small Cap Gem #37: Easy Bio Inc
- Chips News: GPU, CPU in China. Qualcomm Going to Samsung Maybe, Microsoft Accelerator Delayed.
Sizing up September’s KOSPI Size Index Migration Names
- Early take based on avg daily mkt cap: 5 MID→LARGE, 6 LARGE→MID. Count mismatch due to LG CNS likely making a direct jump into LARGE post-March IPO.
- Local insto-driven moves remain tradable — in the March reshuffle, price action started from T–2M, with strongest returns in the T–1M window.
- With cap gaps near historical norms, it’s time to pre-position around top/bottom cutline names — then scale up into borderlines as we move into the T–1M window.
Korea Small Cap Gem #37: Easy Bio Inc
- Easy Bio Inc is one of the leaders specializing in piglet feed and animal feed additives in Korea.
- The company completed an excellent M&A of a company in the US called Devenish Nutrition in February 2024 for 88 billion won.
- If we assume a P/E of 10x and apply this on consensus net profit estimate of 36.3 billion won in 2026, this would suggest market cap of 363 billion won.
Chips News: GPU, CPU in China. Qualcomm Going to Samsung Maybe, Microsoft Accelerator Delayed.
- Lisuan new GPU is a first step, but performance far behind AMD/Nvidia. Loongson new server CPU looks good, close to Intel chip of 2021. Major bottleneck remains SMIC 7nm capacity.
- Qualcomm looks close to qualifying Samsung’s 2nm to manufacture Snapdragon 8 Elite 2. This would imply a major yield breakthru for Samsung.
- Microsoft ARM CPU Maia is in production, but its AI accelerator Braga seems delayed significantly – either performance or an architecture rethink.
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