Korea Small Cap Gem #34: Makus

• Makus is #34 in our Korea Small Cap Gem series. Its treasury shares as percentage of outstanding shares is 44%. Net cash as a percent of market cap is 78%.

• With greater interest in companies that have a combination of high levels of treasury shares as a percentage of market cap, cheap valuations, and excellent fundamentals, Makus fits the bill.

• Makus could be one of the targets for potential tender offers/M&As and likely to outperform the market in the next 1-2 years.

Makus share price performance (5 years) (Source: Google finance)

Makus Inc (093520 KS) has a market cap of 192 billion won (US$140 million). Treasury shares as a percentage of total outstanding shares is 44%. The company has a consistent record of generating positive operating and net profits. Net cash (including treasury shares) as a percent of market cap is 78%. Makus is trading at dirt cheap levels.

With greater interest in companies that have a combination of high levels of treasury shares as a percentage of market cap, cheap valuations, and excellent fundamentals, Makus fits the bill and it could be one of the targets for potential tender offers/M&As and likely to outperform the market in the next 1-2 years.

Makus Company Background

Established in 1997, Makus specializes in wholesale distribution of non-memory semiconductor products. The company has forged strategic partnerships with global semiconductor leaders and has diversified its business portfolio to include data storage solutions. Over the years, Makus has expanded its product offerings and established itself as a reliable supplier to over 500 domestic IT companies.

Makus's primary business revolves around the wholesale distribution of non-memory semiconductor products including programmable logic devices (PLDs), analog integrated circuits (ICs), and LCD display panels.