Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Is China's Boycott of Germanium Gallium to the US Meaningful?

Samco (6387) | Specialist in Silicon Carbide Equipment for Power Chips

Equity Bottom-Up

<ul>
<li>On 3 July 2023, the Ministry of Commerce of China announced that it will restrict exports of gallium and germanium starting next month.</li>
<li>YMC is one of the key beneficiaries in Korea of China's restriction of gallium exports. YMC makes silicon carbide which can be a substitute material for gallium.</li>
<li>YMC's valuation is relatively cheap. Given that YMC currently has a market cap of 150 billion won, this would represent P/E of 7.3x (using 2022 net profit). </li>
</ul>


On 3 July 2023, the Ministry of Commerce of China announced that it will restrict exports of gallium and germanium starting next month.
YMC is one of the key beneficiaries in Korea of China's restriction of gallium exports. YMC makes silicon carbide which can be a substitute material for gallium.
YMC's valuation is relatively cheap. Given that YMC currently has a market cap of 150 billion won, this would represent P/E of 7.3x (using 2022 net profit). 


Korea Small Cap Gem #22: YMC (Beneficiary of China's Restriction of Gallium Exports)

Ymc Co Ltd

Korea Small Cap Gem #22: YMC (Beneficiary of China's Restriction of Gallium Exports)