(016790) HYUNDAI FEED Delisting Risk (016790): A Deep-Dive Analysis for Investors

For investors in HYUNDAI FEED Inc. (KOSDAQ: 016790), recent news has presented a complex picture. A positive legal development has emerged, yet it is overshadowed by the persistent and critical HYUNDAI FEED delisting risk. The withdrawal of a lawsuit offers temporary relief, but the fundamental question remains: what does this mean for the company’s future on the stock exchange? This comprehensive analysis will dissect the recent events, evaluate the company’s core financial health, and provide a clear-eyed perspective on the significant risks and potential pathways forward, helping you formulate a prudent investment strategy amidst the uncertainty.

A Legal Hurdle Cleared: What Just Happened?

On October 31, 2025, a notable legal case against HYUNDAI FEED Inc. was officially closed. The plaintiff, Gong Yong-hoon, withdrew an ‘application for permission to inspect books and records’ (Case No. 2025카합1220). This type of legal action often suggests a shareholder’s concern about corporate governance or financial transparency. Its withdrawal effectively ends this specific dispute, which had been active since September 12, 2025.

For investors, this can be seen as a positive signal. It reduces management uncertainty, eliminates a source of negative headlines, and allows the company’s leadership to focus resources on more pressing issues. The official details of this event can be verified in the Official Disclosure (DART report). However, celebrating this victory would be premature without considering the much larger challenge at hand.

The Core Issue: Unpacking the HYUNDAI FEED Delisting Risk

The resolution of a lawsuit is minor compared to the existential threat facing the company. The HYUNDAI FEED delisting risk is the single most important factor influencing its stock and future. This situation stems from a 2023 auditor’s ‘disclaimer of opinion’ on the company’s financial statements—a major red flag indicating that auditors could not obtain sufficient evidence to form an opinion on the financials’ accuracy.

This led to the company being designated as a KOSDAQ administrative issue. Subsequently, on August 4, 2025, the KOSDAQ Market Committee ruled in favor of delisting. HYUNDAI FEED Inc. is currently in an appeal process, which represents its final opportunity to remain a publicly traded company. This appeal’s outcome will be the decisive factor for all stakeholders.

Company Fundamentals Under a Microscope

To understand the context of the delisting risk, a look at the company’s fundamentals is essential:

• •Core Business: The company’s primary revenue comes from mixed animal feed, especially for poultry. This is a stable but low-margin business heavily exposed to external factors like global grain prices and currency fluctuations (KRW/USD), as most raw materials are imported.
• •Recent Performance: While revenue dipped in the first half of its 43rd fiscal year, operating profit improved. This was largely due to shutting down the unprofitable bio business, which removed a financial drain. Operating cash flow has shown significant improvement.
• •Financial Health: Total equity has decreased, and while debt is stable, long-term borrowings are rising. These are signs of financial pressure that require careful monitoring.
• •Ownership Change: A new largest shareholder, Tteulanchae Construction Co., Ltd., took over in September 2024. The new management’s strategy for tackling the delisting crisis and steering the core business will be critical.

The withdrawal of the lawsuit is a tactical victory, but the strategic battle for survival hinges entirely on the delisting appeal. The underlying financial and governance issues that led to the auditor’s disclaimer must be demonstrably resolved.

Smart Investor Action Plan & Outlook

Given the high stakes, a cautious and informed approach is paramount. The investor sentiment may see a short-term boost from the recent news, but sophisticated investors will look past this to the core issue.

Key Monitoring Factors for Your 016790 Analysis:

• •The Appeal Outcome: This is non-negotiable. The KOSDAQ Market Committee’s final decision is the single event that will determine the company’s fate. Until this is resolved, any investment is highly speculative.
• •Macroeconomic Headwinds: Keep an eye on KRW/USD exchange rates and international commodity prices, as discussed by sources like Bloomberg. A stronger dollar or higher grain prices will squeeze HYUNDAI FEED’s profit margins.
• •Future Financial Reports: If the company survives delisting, subsequent quarterly reports will need to show sustained profitability and a clean auditor’s opinion to rebuild trust. For more details on this process, you can read our Guide to KOSDAQ Delisting Procedures.

Conclusion: The Final Verdict

In conclusion, while the withdrawal of the lawsuit is a piece of good news for HYUNDAI FEED Inc. stock, its impact is minimal in the grand scheme of things. It does not alter the fundamental and severe HYUNDAI FEED delisting risk. Investment decisions must be dominated by this single factor. A wait-and-see approach is the most prudent strategy until the KOSDAQ committee delivers its final verdict. Any investment before that point carries an exceptionally high risk of total loss should the appeal fail.