1. What Happened? Treasury Stock Disposal Announced
On September 15, 2025, BH Corp announced the disposal of 1,646,054 shares of treasury stock, amounting to ₩29.8 billion. The stated purpose is to improve the financial structure through debt repayment and secure investment funds for future growth drivers.
2. Why the Disposal? Background and Objectives
For the first half of 2025, BH Corp reported revenue of ₩722.1 billion (down 58.8% YoY), an operating loss of ₩9.3 billion (a shift from profit to loss), and a net loss of ₩21.7 billion (also a shift to loss). Both the FPCB and automotive electronics divisions experienced declining sales, rising cost ratios, and increased fixed cost burdens, impacting profitability. The treasury stock disposal aims to strengthen the financial position and secure funds for future investments, notably a planned ₩20 billion investment in FPCB business expansion.
3. What’s the Impact? Analyzing the Positives and Negatives
- Positive Impact: The ₩29.8 billion raised can repay debt and improve the financial structure. It also strengthens the financial foundation for future growth drivers, such as the FPCB business expansion.
- Potential Negative Impact: The disposal can lead to stock dilution due to the increased number of outstanding shares. Combined with recent poor performance, it could be perceived negatively by the market, potentially putting downward pressure on the stock price.
4. What Should Investors Do? Investment Strategy Recommendations
- Short-Term Strategy: Be mindful of potential short-term stock price volatility following the announcement. Monitor market reactions and any further disclosures before making investment decisions.
- Mid- to Long-Term Strategy: Continuously monitor BH Corp’s fundamentals, including a potential turnaround in the FPCB and automotive electronics businesses, new order wins, and technological advancements.