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.

Key Investment Highlights

Easy Bio Inc (353810 KS) is one of the leaders specializing in piglet feed and animal feed additives. The company completed an excellent M&A of a company in the US called Devenish Nutrition (maker of animal feed additives) in February 2024. Post this acquisition, the company has greatly expanded its overseas business as well as revenues. It continues to generate healthy profit margins as well.

The consensus estimates net profit of 36.3 billion won in 2026. If we assume a P/E of 10x in 2026, this would suggest implied market cap of 363 billion won. Considering its current market cap of 165 billion won, this would suggest a 120% upside from current levels.

Company Background

Easy Bio is one of the leaders in the animal feed business in Korea. Founded in 1988, Easy Bio has diversified its portfolio into feed solutions, animal health, food processing, and bioenergy. Easy Bio is a biotechnology driven company primarily engaged in the development and manufacture of animal nutrition solutions. The company specializes in piglet feed, feed additives (probiotics, enzymes, organic acids), and environmental care solutions.

The company completed its IPO in June 2020. Easy Holdings owned a 50.2% stake in Easy Bio Inc as of 31 March 2025. In 2024, it consolidated its global animal nutrition business by merging Easy Bio USA Inc and Devenish Nutrition LLC.

The company operates multiple production and research facilities in South Korea and has extended its distribution network to countries including Vietnam, China, Columbia, and the United States. The company also provides AI driven software tools for predictive feed formulation and these tools are now integrated into farm management systems, allowing customers to model cost effective feed blends while ensuring nutritional adequacy.

The company’s most important business segment is the Animal Nutrition where the company provides three key products: specialized animal feeds (especially for piglets); additives (such as organic acids, enzymes, probiotics, and essential oils); and nutrient premixes (tailored to species, life stage, and environmental factors)

Others include biotechnology R&D, digital feed solutions, and other sustainable and environmental solutions. In biotechnology R&D, the company has advanced in-house biotechnology research capabilities including industrial microbial fermentation, genetic engineering of probiotic strains, simulation platforms. The company is one of the pioneers in Korea in digital feed formulation tools. These proprietary software platforms allow farmers and nutritionists to analyze nutrient profiles of raw materials and predict the economic efficiency of different feed mixes based on current market prices.

Key Acquisitions in the Past Two Decades:

• 2012 – The company acquired Samyang Corp’s animal feed business for 18 billion won in March 2012. This acquisition expanded Easy Bio’s manufacturing capacity and market reach, particularly in the compound feed production.

• 2015 – The company acquired a 40.4% stake in Seoul Feed Co for 29 billion won in December 2015.

• 2024 - Easy Bio acquired a 100% stake in a US company called Devenish Nutrition NA for 88 billion won in February 2024. Devenish Nutrition specializes in feed additives and premix business. This was the largest ever M&A deal by Easy Bio in the past two decades. Devenish Nutrition has five production plants and six research facilities in the United States and Mexico. More than 30 of 200 employees at Devenish Nutrition are Ph.D level personnel, helping the company establish a firm position in the North American livestock market through value-adding products and services based on high-quality technology and research capabilities.

Source: Easy Bio Inc

Source: Company data

Source: Company data

Source: Company data

Source: Company data

Source: Company data

Easy Bio Inc Sales Breakdown by Major Product Units

The company breaks down its sales into three main units including Piglet Feed, Feed Additives, and Others/Adjustments. In 2024, Feed Additives accounted for 79.5% of total sales, followed by Piglet Feed (26.8%), and Others/Adjustments (-6.3%). Piglet Feed accounted for a lower portion of the company's total sales from 2022 to 2024 which was offset by Feed Additives accounting for a higher portion of its total sales in the same period.

For example, Piglet Feed as a percentage of total sales declined from 50.8% in 2022 to 26.8% in 2024. Feed Additives as a percentage of total sales increased from 60.7% in 2022 to 79.5% in 2024. Others/Adjustments as a percentage of total sales changed from -11.5% in 2022 to -63% in 2024.

Sales growth - The company's total sales increased by 6.3% YoY in 2023 and by 132.3% YoY in 2024. Piglet Feed's sales increased by 3.5% YoY in 2023 and by 25.7% YoY in 2024. Feed Additives' sales increased at much faster pace (up 3.5% YoY in 2023 and up 179.7% YoY in 2024).