[Asia Economy Reporter Hyungsoo Park] Midas AI is showing strong performance. The news that Midas AI acquired the domestic No.1 special steel company in the 201 series steel category appears to have influenced its stock price. Midas AI expects its annual sales to increase to 200 billion KRW and profits to grow as well.
As of 9:39 AM on the 19th, Midas AI is trading at 2,860 KRW, up 18.43% from the previous day. The stock price has continued its upward trend after hitting the daily price limit the day before.
Midas AI announced that it acquired 100% (240,000 shares) of Jason & Company, a domestic stainless steel specialist, the day before. The total acquisition amount was 18.2 billion KRW. Following the share acquisition agreement signed in January, Midas AI completed the final payment and finalized all acquisition procedures.
Founded in 2002, Jason & Company purchases stainless steel from major overseas companies in China, Indonesia, Taiwan, as well as leading domestic steelmakers such as POSCO and Hyundai Steel, producing high value-added products and supplying them to demand sectors. Its major clients include large domestic steel distributors, automobile manufacturers, construction-related companies, and producers of structural and pipeline products.
Jason & Company achieved sales of 98.7 billion KRW and operating profit of approximately 5.7 billion KRW last year. Its performance through April this year has significantly increased compared to the previous year. Benefits from rising raw material prices are also expected. Nickel, supplied by Russia which accounts for about 10% of global demand, is an essential raw material for stainless steel production. The higher the nickel content, the more refined and rust-resistant premium STS can be produced, so an increase in nickel prices affects STS prices.
Last year, Midas AI achieved sales of 11.1 billion KRW and operating profit of 1.1 billion KRW in its core business, successfully turning profitable and exiting the management watchlist. With the acquisition of Jason & Company, Midas AI aims for consolidated annual sales in the 200 billion KRW range including domestic and overseas subsidiaries.
Midas AI plans to pursue various strategies to maximize operating profit, including increasing Jason & Company’s sales and reducing purchasing finance costs. The company explained that the significant improvement in Jason & Company’s performance will greatly contribute to Midas AI’s earnings improvement.
A Midas AI representative said, “In the 201 series steel products, which have been distributed only as imports, Jason & Company has recorded the No.1 domestic market share (30-40%) for over 17 years based on a stable supply chain. We will leverage this market share advantage to the fullest while driving continuous growth through process technology development and additional facility investments.”
He added, “Following the normalization of our core business after exiting the management watchlist, we have completed the acquisition of Jason & Company which began earlier this year. Going forward, the company’s performance will grow explosively.”
He continued, “Based on stable performance, we will expand our cannabis-related business currently underway in the U.S. We will internalize the entire value chain from cultivation, manufacturing, distribution to sales of cannabis to maximize profitability.”
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