1. What Happened?: Large Holding Report Analysis
Scandi New Technology Association No. 278 reduced its stake in Neofect from 34.38% to 27.10%. 4,408,060 shares from convertible bonds were sold to Neobus (Indigo New Technology Association No. 38), with the purpose of holding stated as ‘influence on management rights.’ This could negatively impact the stock price in the short term, but a management dispute is unlikely.
2. Why Did This Happen?: Neofect’s Current Situation
Neofect recorded a net loss of 2.3 billion KRW in Q1 2025 due to declining sales in the rehabilitation medical device sector and increased investment in its new automotive electronics software venture. High interest rates and volatile exchange rates are also adding pressure.
3. What’s Next?: Future Outlook and Investment Points
Despite the potential for short-term stock price decline, the success of the new business could be a long-term growth driver for Neofect. Investors should closely monitor future quarterly reports for signs of performance improvement and progress in the new business area.
4. What Should Investors Do?: Action Plan
- Short-term Investment: Be mindful of increased stock volatility and consider potential short-term price drops as buying opportunities.
- Mid- to Long-term Investment: Continuously monitor the success of the new business, efforts to secure financial stability, and changes in the external environment. Establishing a risk management strategy and reviewing quarterly reports for performance improvements are crucial.