1. What Happened?: Analysis of the Divestment
Taesung’s major shareholder, Kim Jong-hak, reduced his stake from 35.28% to 30.31%. This was due to an over-the-counter sale by a related party, Kim Jong-bok, and is interpreted as a decrease in holdings for management influence purposes.
2. Why Did This Happen?: Divestment Background and Financial Health
Amid declining PCB business performance, Taesung is diversifying into camera modules and secondary batteries. This has led to increased initial investment costs, impacting operating profits. Despite efforts to improve its financial structure, profitability remains a concern. However, a significant increase in current assets points to improved financial health.
3. What’s Next?: Short-Term and Long-Term Outlook
- Short-term: The large-scale sale could create short-term supply pressure, potentially leading to a decline in stock price. However, it could also alleviate uncertainties surrounding management control.
- Long-term: The new camera module and secondary battery businesses hold growth potential, but it will take time for these to generate tangible results. The improved financial health is a positive factor.
4. What Should Investors Do?: Action Plan
A ‘wait-and-see’ or ‘conservative approach’ is recommended at this time. It’s prudent to make investment decisions after observing the absorption of the sold shares and the performance of the new businesses. Careful monitoring of stock price volatility and market conditions is crucial.