Korea Small Cap Gem #30: Kiswire

• Kiswire Ltd (002240 KS) is the number one player for steel wire and rope products in Korea. More than 85% of its sales are generated overseas.

• The company has a consistent record of generating positive net profit. It is trading at low valuations (P/B of 0.3x and EV/EBITDA of 4.5x).

• Its average net profit from 2021 to 2023 are much higher than previous three years from 2018 to 2020, which is a testament of increasing demand for its products globally.

Conclusion First

Kiswire Ltd (002240 KS) is the number one player for steel wire and rope products in Korea. More than 85% of its sales are generated overseas. The company has a consistent record of generating net profit. It is trading at low valuations (P/B of 0.3x and EV/EBITDA of 4.5x).

The company has a strong record of upgrading its technology for the next generation wire and rope products in the past several decades. One of the technologies to look out for is that it has a subsidiary that specializes in the superconducting wire material that is used in the next generation nuclear power plant facilities. All in all, despite concerns such as potential global recession, we are positive on Kiswire.