1. What Happened? : Overview of the Convertible Bond Exercise

PowerNet announced the exercise of convertible bonds totaling 1,104,967 shares, representing 4.59% of the current market capitalization. The conversion price is set at 2,715 KRW, with the expected listing date on September 2, 2025.

2. Why Does It Matter? : Impact Analysis of the Convertible Bond Exercise

2.1 Short-Term Impact: Increased Stock Volatility

The exercise of convertible bonds can lead to stock dilution and selling pressure in the short term. The increased number of shares can dilute the value per share, and as the current stock price is higher than the conversion price, there’s a possibility of selling pressure from investors seeking to realize profits. Increased volatility is expected, especially around the listing date.

2.2 Long-Term Impact: Improved Financial Structure and Business Expansion

In the long term, the influx of funds from the conversion can improve PowerNet’s financial structure and be used for investments in new businesses. This can positively impact the company’s future growth drivers, including GaN, battery packs, and AI servers.

3. What Should You Do? : Investment Strategy

Short-term investors should proceed with caution, considering the potential selling pressure. Technical analysis to identify support and resistance levels is crucial.
Long-term investors should closely monitor PowerNet’s new business progress and earnings improvement trends. It’s important to verify whether the converted funds are contributing to securing growth momentum.

4. PowerNet’s Future: Growth Potential and Risks

4.1 Growth Potential

  • • Stable SMPS business and growing new business portfolio
  • • Solid earnings growth trend
  • • Securing technological competitiveness in GaN-based next-generation power semiconductors

4.2 Risk Factors

  • • Short-term stock price volatility due to the exercise of convertible bonds
  • • Potential increase in cost burden due to exchange rate fluctuations
  • • Macroeconomic uncertainties