What Happened?
Green Resource announced a 1:1 bonus share issue on August 4, 2025, with new shares listed on September 10, 2025. Shareholders will receive additional shares equal to their current holdings.
Why a Bonus Share Issue?
Bonus share issues generally aim to increase liquidity and stimulate trading activity. A higher number of shares lowers the price per share, improving accessibility for investors and potentially leading to increased trading volume. It can also be interpreted as a positive signal of the company’s confidence in its future growth.
So, What Happens to the Stock Price?
In the short term, there’s a possibility of a price drop. Doubling the number of shares theoretically halves the price per share. However, increased liquidity and improved investor sentiment could lead to a long-term price increase. Considering the company’s weak Q1 2025 performance, high interest rates, and volatile raw material prices, the stock’s direction remains uncertain. External factors like the downturn in the display and semiconductor industries and the Chinese economic situation will also play a significant role.
- Positive Factors: Increased liquidity, greater investor interest.
- Negative Factors: Weak Q1 2025 earnings, persistent high interest rates, volatile raw material prices, industry downturn.
What Should Investors Do?
Avoid hasty investment decisions. Closely monitor earnings announcements from Q2 2025 onwards and changes in the external environment. Analyze the growth potential of the bio-raw material business, the synergy effects of the subsidiary merger, and other relevant factors to inform your investment decisions. A prudent investment strategy focused on the company’s long-term growth potential is more important than reacting to short-term price fluctuations.