What Happened?
JS Link announced the exercise of its 9th convertible bond, with 404,889 shares set to be listed on September 5, 2025. The conversion price is set at 2,661 KRW, significantly lower than the current stock price of 17,160 KRW.
Why Does it Matter?
This convertible bond exercise will lead to an increase in circulating supply, raising concerns about stock dilution. However, the conversion of debt into equity could positively impact the company’s financial structure. Analyzing the potential combined effect of these opposing factors on the stock price is crucial.
What Should Investors Do?
Investors should focus on JS Link’s fundamentals rather than short-term price fluctuations. Carefully consider the performance of the new permanent magnet business, the recovery of the existing genomic analysis business, the stability of the financial structure, and changes in management before making investment decisions. The success of the permanent magnet business will be a key factor influencing future stock performance.
Action Plan for Investors
- Short-term investors: Be mindful of increased price volatility and consider short-term profit-taking strategies. However, be aware of the downside risk from the increased circulating supply.
- Long-term investors: Continuously monitor JS Link’s fundamentals, focusing on the performance of the new business and improvements in its financial structure.