What Happened? – BH Announces ₩27 Billion Convertible Bond Issuance

BH announced on September 15, 2025, the issuance of ₩27 billion in private convertible bonds. The conversion price is set at ₩21,600, with the conversion period starting on October 23, 2025. Major investors include LS Securities, Kiwoom Securities, and IBK Investment & Securities.

Why Issue Convertible Bonds? – Securing Funds for Growth Momentum

BH, a specialist in FPCB (Flexible Printed Circuit Board), is seeking growth in the automotive electronics sector. The funds raised through this convertible bond issuance are planned for R&D investment expansion, new facility investment (₩20 billion for machinery), and operating funds. The investment is expected to enhance BH’s competitiveness in the RF-PCB field, which is essential for OLED displays and addresses the trend of miniaturization in the FPCB market.

Impact on Stock Price? – Coexistence of Opportunities and Risks

  • Positive aspects:
  • Expectation of improved financial structure and secured long-term growth momentum through fund procurement
  • Positive signal for future growth potential through investment expansion, creating expectations for stock price increase
  • Negative/Cautionary aspects:
  • Difficulty in realizing the value of convertible bonds without a stock price increase due to the gap between the conversion price (₩21,600) and the current price (₩16,811)
  • Concerns about potential stock dilution due to the increase in the number of issued shares upon conversion (estimated at approximately 4.3%)
  • Increased burden on profitability improvement due to recent operating loss and external factors such as raw material price and exchange rate volatility

What Should Investors Do? – Thorough Analysis and Long-Term Perspective

  • Thorough analysis of fundamentals and potential for stock price increase
  • Accurate understanding of convertible bond conditions and conversion mechanisms to identify potential risks
  • Continuous monitoring of exchange rate and raw material price fluctuations
  • Focus on the company’s long-term growth potential rather than short-term volatility