1. What Happened?: Analyzing Senko’s Leadership Change
CEO Ha sold a significant portion of his 32.13% stake to an M&A growth consortium, reducing his ownership to 16.16%. This signifies a shift in control to the consortium, marking a pivotal moment for Senko.
2. Why?: The Reasons Behind the Change and Senko’s Current Situation
Senko reported strong H1 2025 results, with a 3.47% increase in sales and a 55.33% surge in operating profit. Positive growth drivers include strengthened gas safety regulations, expanding smart city projects, and overseas market entry. However, risks remain, including convertible preferred stock, uncertainties surrounding the US subsidiary’s market entry, and dependence on key customers.
3. What’s Next?: Senko’s Future and Investment Outlook
The new management’s strategy will significantly impact Senko’s trajectory. The consortium’s investment and expansion plans offer potential upside, but uncertainties in management strategy and potential restructuring pose risks. CEO Ha’s stock sale may exert downward pressure on the stock price in the short term.
4. Investor Action Plan: Navigating Senko’s Transition
We maintain a ‘Neutral’ rating and advise a cautious approach. Closely monitor the new management’s plans, details of any rights offering, management changes, continued earnings growth, and stock price trends.