1. What Happened?: Hyundai Saryo’s Delisting Crisis
Hyundai Saryo previously faced delisting due to a qualified audit opinion, but this was resolved in March 2025 with an unqualified opinion. However, the Korea Exchange still voted for delisting, and Hyundai Saryo has filed an appeal. The final decision is expected by September 23rd.
2. Why?: The Background and Fundamental Analysis of the Delisting Crisis
Hyundai Saryo discontinued its bio business and is focusing on the compound feed business. While its 2025 half-year results showed a slight increase in operating profit despite decreased sales, net income significantly decreased due to a valuation loss of approximately KRW 13 billion in other comprehensive income. Rising raw material prices and exchange rates are also pressuring profitability. While recent acquisitions of two subsidiaries suggest diversification efforts, securing financial soundness is crucial.
3. What’s Next?: Scenario Analysis Based on the Delisting Decision
- 3.1 If Delisting is Avoided:
- Potential for investor sentiment recovery and stock price rebound.
- Strengthening core business competitiveness and improving financial structure will be key.
- 3.2 If Delisting Occurs:
- Trading suspension and potential investor losses.
- Threat to business continuity and potential collapse of corporate value.
4. What Should Investors Do?: Action Plan
Investors should exercise caution until the delisting decision is announced. If the listing is maintained, a thorough review of fundamental improvements is necessary. If delisting occurs, investors should be aware of the potential difficulty in recovering their investments. Careful investment decisions should be made after considering all risk factors.