What’s Happening? LTC Announces Convertible Bond Issuance

LTC announced a new convertible bond issuance on September 18, 2025. Bondholders are exercising their conversion rights, leading to the issuance of 420,756 new shares. This represents 4.32% of the current market capitalization. The scheduled issuance date is October 2, 2025, with a conversion price of ₩11,693. The lower conversion price compared to the current stock price (₩19,650) raises concerns about potential profit-taking.

Why the Issuance? LTC’s Financial Strategy

LTC achieved a turnaround in the first half of 2025, demonstrating positive fundamentals. The company has secured growth momentum based on strong performance in its equipment division and the potential of new businesses (SOFC, OLED materials). This convertible bond issuance is interpreted as a strategy to improve financial structure by converting debt into equity and to enhance profitability by reducing interest expenses.

What’s the Impact? Short-term Pain vs. Long-term Gain

  • Short-term Impact: The increased supply of shares and potential profit-taking may exert downward pressure on the stock price in the short term.
  • Long-term Impact: The issuance is expected to improve financial health by reducing debt and increasing capital, and enhance profitability by lowering interest expenses. Considering LTC’s solid fundamentals and growth potential, there is a possibility of stock price recovery in the long run.

What Should Investors Do? Prudent Approach and Long-term Perspective

The investment recommendation is ‘Neutral’ or ‘Hold’. Investors should approach with caution, mindful of short-term price volatility. Those who believe in LTC’s growth potential may consider a dollar-cost averaging strategy in case of price declines. Continuous monitoring of post-conversion stock movements, new business performance, and industry trends is crucial.