What’s Happening with SAMCNS?

On September 23, 2025, SAMCNS was designated as an overheated stock by the Korea Exchange. This indicates that the stock price has experienced rapid increases over the past three trading days, showing signs of speculative overheating. As a result, SAMCNS will be traded under a single-price trading method for three days, a measure designed to limit price volatility and encourage cautious investment.

Why the Overheating?

The surge in SAMCNS’s stock price is attributed to the combined effect of positive expectations for growth in the HBM (High Bandwidth Memory) market and the company’s strong performance in the first half of 2025. With a high proportion of ceramic STF for NAND probe cards and improved profitability efforts, SAMCNS recorded sales of KRW 34.5 billion (YoY +41.1%) and operating profit of KRW 4.9 billion (YoY +34.0%) in Q2 2025. The development and expansion of ceramic substrates for HBM are particularly anticipated as key growth drivers for the company.

Implications of the Overheated Stock Designation

  • Increased Short-Term Volatility: The designation serves as a warning signal, potentially leading to investor anxiety and profit-taking, thus increasing price volatility.
  • Reduced Trading Volume and Volatility: The single-price trading method restricts trading volume and price fluctuations, potentially hindering price discovery in the short term.
  • Limited Impact on Fundamentals: The designation itself does not necessarily undermine the company’s intrinsic value.

Investor Action Plan

  • Short-Term Investors: Proceed with caution, considering the potential for profit-taking and increased selling pressure.
  • Long-Term Investors: Continuously monitor the company’s fundamentals and competitiveness in the HBM market, potentially using price fluctuations as opportunities for staggered purchases.