1. What Happened with the Morgan Stanley Sell-off?
Morgan Stanley continuously sold DK Lock shares from September 10th to 12th, 2025. This led to a voluntary change report disclosure as their stake fell below 5%. This selling pressure could impact the stock price negatively in the short term. However, considering the reporting obligation has been lifted due to falling below the 5% threshold, the possibility of further large-scale selling is limited.
2. Is DK Lock’s Fundamentals Sound?
- Positive Factors: Solid sales growth and operating profit increase in the domestic business segment demonstrate DK Lock’s core competitiveness. Domestic market sales, in particular, drove growth, increasing by 15.11% year-on-year. Improved operating cash flow is also a positive sign.
- Negative/Concerns: The net loss on a consolidated basis is primarily attributed to the poor performance of overseas subsidiaries. This adds uncertainty to future earnings forecasts.
3. What’s the Investment Strategy?
- Short-term investors: Should pay close attention to Morgan Stanley’s movements and stock price volatility.
- Mid- to long-term investors: Need to closely monitor the continued growth of the domestic business, the recovery of overseas businesses, the performance of new businesses (hydrogen/electric vehicles), and the impact of exchange rate fluctuations and macroeconomic changes.