1. What Happened? : Morgan Stanley Reduces APR Stake to 4.68%

Morgan Stanley reduced its stake in APR from 5.11% to 4.68% through on-market sales between August 1st and 5th. This is a change of less than 1%, triggering a mandatory disclosure. The disclosure also included information about their exceeding the 5% ownership threshold in July and subsequent changes.

2. Why? : Likely a Shift in Investment Strategy

Morgan Stanley’s stated holding purpose was ‘simple investment.’ Therefore, this divestment is likely due to profit-taking, portfolio rebalancing, or other changes in their investment strategy. It doesn’t necessarily signal a deterioration in APR’s fundamentals.

3. What’s Next? : Short-Term Downward Pressure vs. Solid Fundamentals

Morgan Stanley’s selling could put downward pressure on APR’s stock price in the short term. However, APR’s Q1 2025 earnings were solid, with positive growth in overseas sales and home beauty devices. These strong fundamentals should limit the downside risk.

4. What Should Investors Do? : Maintaining a Steady Investment Strategy

  • Current Holders: Don’t be swayed by short-term price fluctuations. Maintain your holdings while monitoring the company’s mid-to-long-term growth strategy and earnings trends.
  • New Investors: If the current price undergoes a correction, it could present an entry opportunity. However, consider a dollar-cost averaging strategy to mitigate volatility.

Monitor foreign selling trends, upcoming quarterly earnings, and macroeconomic changes to adjust your investment strategy accordingly.