1. Key Details of Intops’ Convertible Bond Issuance

Intops has issued 13 billion won worth of convertible bonds through a private placement. The conversion price is set at 20,609 won, significantly higher than the current stock price of 10,980 won. Does this reflect expectations of future stock price increases? Or could it act as downward pressure on the stock price?

2. Why Issue Convertible Bonds Now?

Intops recorded a decline in sales and an operating loss in the first half of 2025 on a consolidated basis. Its credit rating has also been downgraded from A- to BBB+. Facing financial difficulties such as a high debt ratio and negative retained earnings, securing funds was likely essential. The 0% coupon rate allows Intops to secure funds with a low interest burden.

3. Impact on Investors

  • Positive Impacts: Improved financial structure, secured liquidity, and investment capacity for future growth engines.
  • Negative Impacts: Potential downward pressure on stock price due to the gap between the conversion price and the current stock price, and possible weakening of stock price momentum until the bond maturity date.

4. Investment Strategy

  • Focus on fundamental improvement: Closely monitor whether Intops’ performance improves after securing the funds.
  • Track stock price movements and conversion price achievement: Pay attention to the possibility and timing of the conversion of convertible bonds into stocks.
  • Monitor macroeconomic and industry environment changes: Understand changes in the macroeconomic environment, such as exchange rates and interest rates, and trends in the IT/automotive industry.
  • Cautious approach for short-term investment: A conservative investment approach is recommended until clear signals of earnings improvement and financial soundness recovery emerge.