1. What is the Stock Dividend About?
YJ Link announced a 100% stock dividend on August 21, 2025. Shareholders will receive one additional share for every share they own as of September 5, with the new shares listed on September 19.
2. Why the Stock Dividend?
YJ Link has been facing recent performance challenges. According to its 2025 half-year report, sales decreased by 26.6% year-on-year, and operating profit turned negative. In this context, the stock dividend can be interpreted as an attempt to boost shareholder morale and improve investor sentiment. It can also lead to increased liquidity and trading activity.
3. What Does This Mean for Investors?
- Short-term impact: The stock price might experience a short-term increase following the announcement. However, after the listing of new shares, a dilution effect could occur due to the increased number of shares.
- Long-term impact: YJ Link’s future depends on the success of its EMS business entry and global production expansion strategy. Successful execution of these strategies, leading to improved performance, could make the stock dividend a positive factor for long-term investment value.
4. What Should Investors Do?
- Short-term investors: Consider profit-taking if the stock price rises after the announcement. Be mindful of price volatility around the new share listing date.
- Long-term investors: Continuously monitor YJ Link’s EMS business performance and the improvement of its overseas subsidiaries’ earnings. The recovery of its financial health is also a critical factor to consider.