BIOL (335890): Background and Implications of the Major Shareholder’s Stake Increase
On August 18, 2025, BIOL’s major shareholder increased their stake from 94.24% to 94.87%, a 0.63%p increase, through on-market purchases and contracts related to shares. This stake increase, amidst the ongoing change of the largest shareholder to a special purpose company established by VIG Partners, suggests management stabilization and strong confidence in the company.
Hidden Shadows: Declining Profitability and Potential Risks
However, there are downsides to consider. BIOL’s semi-annual report for 2025 shows a trend of declining profitability despite revenue growth. Operating income and net income decreased by 4.4% and 24.2%, respectively, due to increased selling, general and administrative expenses, and financial expenses. Additionally, given the high proportion of exports, increasing exchange rate volatility and the possibility of a global economic recession can act as investment risks.
Action Plan for Investors: Balancing Opportunities and Risks
While the major shareholder’s stake increase offers the positive aspect of management stability, it’s crucial to consider the risks of declining profitability and changes in the external environment. Investors should look beyond short-term stock price fluctuations and closely monitor the company’s efforts to improve profitability and future plans related to the change of the largest shareholder.