1. What Happened? : Major Shareholder Change and Stake Sell-off

Homecast significantly reduced its stake in CSA Cosmic from 55.45% to 10.76%. This represents a transfer of management control, with Sweet K expected to become the new major shareholder. The issue is that this change occurs amidst a backdrop of declining performance.

2. Why Does it Matter? : Increased Uncertainty and Weakened Investor Sentiment

Frequent changes in major shareholders raise concerns about management instability and potential strategic shifts. CSA Cosmic’s 2025 half-year results show a significant decline, with sales down 60.5% year-on-year and both operating and net income turning negative. This change in ownership amplifies uncertainty about the company’s future, further dampening investor sentiment.

3. What’s the Impact? : Downward Pressure on Stock Price and Potential Fundamental Deterioration

The large-scale sell-off of shares is likely to put downward pressure on the stock price in the short term. Furthermore, investing in CSA Cosmic is risky given the uncertainty surrounding the new major shareholder’s management capabilities and business strategies. The issuance of KRW 8 billion in convertible bonds and a KRW 100 billion rights offering will help secure short-term funding, but the potential for long-term stock dilution must be considered.

4. What Should Investors Do? : Careful Observation and Risk Management

  • Monitor the new major shareholder’s business plans: Carefully review Sweet K’s plans for business normalization and growth strategies.
  • Check for a turnaround in the cosmetics business: Focus on tangible performance improvement efforts, such as new product launches and changes in marketing strategy.
  • Monitor financial structure improvement trends: Continuously review changes in financial soundness following the rights offering and convertible bond issuance.

Investment in CSA Cosmic requires extreme caution at this time. Maintaining a speculative sell position or remaining on the sidelines and responding flexibly to changes in the situation is recommended.