1. What Happened?

HJ Heavy Industries’ largest shareholder sold 2,805,253 shares between July 28th and August 4th, reducing their stake from 62.43% to 58.99%. While profit-taking is the most likely scenario, investors are watching closely for any signs of potential management changes.

2. Why the Divestment?

Officially, the reason given is ‘over-the-counter sale,’ suggesting profit-taking. However, major shareholder divestments always raise questions about potential management shifts, so further developments warrant close observation.

3. The Current State of HJ Heavy Industries

While HJ Heavy Industries returned to profitability in Q1 2025, declining sales and high debt-to-equity ratio remain challenges. The shipbuilding division shows promise in specialized vessels, while the construction division is susceptible to economic fluctuations.

  • Financials: Debt-to-equity ratio remains high at 536.41%. Cash and cash equivalents are declining.
  • Business Overview: Construction accounts for over 60% of revenue. Shipbuilding’s specialized vessel segment is performing well.

4. What’s Next?

This divestment could negatively impact the stock price in the short term. However, it could also remove some long-term uncertainty. The future stock price hinges on further share sales by the major shareholder, improvements in the company’s fundamentals, and macroeconomic conditions.

5. Investor Action Plan

Investors should carefully monitor the following factors when making investment decisions:

  • Further share sales by the major shareholder.
  • Improvements in HJ Heavy Industries’ fundamentals (orders, profitability).
  • Changes in macroeconomic indicators (interest rates, exchange rates, commodity prices).

The short-term price drop may present a buying opportunity, but caution is advised.