Korea Stock Market Insights

Tag: 036810

FST Announces Treasury Stock Disposal: Opportunity or Risk?
FST to Dispose of Treasury Shares: What Does it Mean for Investors?

Following a surprisingly strong first half of 2025, FST announced on September 17th its decision to dispose of treasury shares. Is this a bullish or bearish signal? This post analyzes the background and purpose of FST’s treasury stock disposal, its potential impact, and provides investors with clear investment strategies. Read on to find out!
1. What Happened? : FST Decides to Dispose of Treasury Stock

FST announced on September 17, 2025, its decision to dispose of 617,036 treasury shares, equivalent to approximately KRW 20 billion. The disposal will be executed through the issuance of exchangeable bonds, with the primary goal of securing funds.

2. Why the Disposal? : A Strategic Move for Future Growth

FST plans to use the acquired funds for R&D investment, new business ventures, facility investment, and securing future growth engines. This can be interpreted as a strategic decision to maintain and strengthen competitiveness in the rapidly changing semiconductor industry.

3. How Will This Affect the Stock Price? : Opportunities and Risks Coexist
- Positive Impacts:
- Potential Negative Impacts:
FST’s strong performance in the first half of 2025 and the positive outlook for the semiconductor market are positive factors. However, the potential stock dilution and market reaction should be closely monitored.

4. What Should Investors Do? : Short-Term Caution, Long-Term Perspective
- Short-Term Strategy: Exercise caution and closely observe market reactions and the terms of the exchangeable bond issuance.
- Long-Term Strategy: Focus on FST’s competitiveness and growth potential in the pellicle and chiller equipment market, while continuously monitoring its financial soundness and industry growth synergy.
Why is FST disposing of its treasury stock?

Companies dispose of treasury stock for various reasons. In FST’s case, the aim is to secure funds through the issuance of exchangeable bonds and utilize these funds for investments in future growth drivers.

What are exchangeable bonds?

Exchangeable bonds are bonds that grant the holder the right to exchange them for the issuing company’s stock. Investors can receive bond interest until maturity or exchange them for shares under predetermined conditions.

Does treasury stock disposal negatively impact stock prices?

Treasury stock disposal can potentially lead to an increase in the number of outstanding shares, resulting in stock dilution. However, it can also have positive effects depending on the purpose of the disposal, the use of funds, and market conditions.
09/16/2025
FST Announces ₩20B Convertible Bond Issuance: Impact on Stock Price and Investment Strategy
FST’s announcement of a ₩20 billion convertible bond offering has sparked considerable interest among investors. What does this decision mean for FST’s future? This article analyzes the background and implications of the bond issuance and highlights key investment considerations for informed decision-making.
1. FST’s ₩20 Billion Convertible Bond Issuance: What Happened?
On September 17, 2025, FST officially announced its decision to issue ₩20 billion worth of convertible bonds. Key details include:
- Offering Type: Private Placement
- Conversion Price: ₩32,413 (significantly higher than the current market price of ₩2,196)
- Payment Date: September 25, 2025
- Conversion Start Date: October 2, 2025
- Conversion End Date: August 25, 2030
- Lead Investor: Korea Investment Global Semitech New Technology Business Investment Association
2. Why the Convertible Bond Issuance?: Background and Implications
The bond issuance is primarily aimed at securing funds for R&D investments in key growth areas, including EUV pellicles and next-generation chillers. This move aligns with the growth trajectory of the semiconductor market and FST’s need for business expansion.
3. Impact on Investors: Opportunities and Risks
Positive Aspects:
- ✔ Securing funds for future growth drivers
- ✔ Potential for long-term improvement in financial structure through stock conversion
Negative Aspects:
- ❌ High conversion price relative to current market price puts pressure on stock price appreciation
- ❌ Potential burden of bond repayment if stock price fails to reach conversion price
- ❌ Potential dilution of shareholder value
4. Investment Strategy: What Should Investors Do?
This convertible bond offering can have complex short-term and long-term implications. Investors should carefully monitor the following factors before making investment decisions:
- 👉 Actual conversion rate of convertible bonds and stock price trends
- 👉 FST’s R&D investment performance and new business outcomes
- 👉 Semiconductor market conditions and macroeconomic indicators
FAQ
What are convertible bonds?
Convertible bonds are debt securities that offer the holder the option to convert them into a predetermined number of shares of the issuing company’s common stock.
Will FST’s convertible bond issuance positively impact its stock price?
Securing funding for R&D is positive, but the high conversion price relative to the current market price could pressure stock price appreciation. Therefore, it’s difficult to predict the short-term impact on the stock price.
What should investors be cautious about?
Investors should carefully monitor the actual conversion rate, the company’s R&D performance, and the changes in the semiconductor market.
09/16/2025
FST (036810) H1 2025 Earnings Report Analysis: Riding the AI Wave, but Challenges Remain
FST: A Hidden Champion in the Age of AI

With AI technologies like ChatGPT and autonomous driving at the forefront of future industries, the semiconductor industry is experiencing explosive growth. FST (036810), a leading provider of pellicles and chillers, has released its H1 2025 earnings report, drawing attention from investors. While showing positive growth, FST also faces challenges. Let’s analyze the key findings and derive investment implications.
1. FST H1 2025 Performance: Growth and Loss

FST recorded revenue of KRW 144.5 billion (a 43.2% YoY increase) and operating profit of KRW 4.5 billion (turning to profit) in H1 2025. However, net loss persisted at KRW -3.8 billion, presenting a mixed picture.

2. Drivers of Growth: AI and Advanced Semiconductors

The growth is driven by the expansion of the AI market and increasing demand for advanced semiconductors. Both the pellicle business (revenue KRW 78.8 billion, +54% YoY) and chiller business (revenue KRW 64.5 billion, +37% YoY) showed strong growth. Active R&D investment (10.52% of revenue), focusing on EUV pellicles, next-generation DUV pellicles, and cryogenic chillers, is a positive sign for future growth.

3. Profitability Improvements and Challenges: Why the Net Loss?

Despite achieving positive operating income, FST’s net loss continues due to non-operating expenses, including losses from investments in associates. This is a key point for investors to consider. While FST is working on improving profitability, tangible results are yet to be seen.

4. Investing in FST: Opportunities and Risks

FST is well-positioned to benefit from the growth of the AI market. However, the continued net loss, semiconductor market volatility, and intensifying competition are key risks to consider. Investors should focus on long-term growth potential and profitability improvement rather than short-term fluctuations.

5. Action Plan for Investors
- Short-term investors: Closely monitor the timing of net income turning to profit and the management of non-operating expenses.
- Long-term investors: Focus on analyzing the potential benefits from AI market growth, competitiveness in the pellicle and chiller markets, and new technology development achievements to formulate an investment strategy.
Q: What are FST’s main businesses?

A: FST manufactures pellicles and chillers, essential components in the semiconductor manufacturing process. Pellicles are thin films that protect semiconductor chips from contamination, and chillers control the temperature during the manufacturing process.

Q: How was FST’s performance in H1 2025?

A: FST reported revenue of KRW 144.5 billion (up 43.2% YoY) and operating profit of KRW 4.5 billion (turned to profit). However, the company continued to report a net loss of KRW -3.8 billion.

Q: What are the key considerations when investing in FST?

A: Investors should consider the continued net loss, semiconductor market volatility, and intensifying competition. Monitoring the management of non-operating expenses, particularly losses from investments in associates, is crucial.
08/19/2025
FST(036810) Investor Relations: Q2 Earnings and Future Stock Outlook
FST: Focus on Q2 Earnings and Future Growth Potential!

FST’s investor relations (IR) meeting is scheduled for July 28, 2025. Having recorded a loss in Q1, will FST achieve a turnaround in Q2? This IR will disclose not only Q2 earnings but also information on growth strategies and future prospects for key new businesses such as EUV pellicles and cryogenic chillers. This article will provide insights into the key aspects of the IR and stock outlook analysis to aid in building a successful investment strategy.
1. FST IR: What to Expect?

On July 28, 2025, FST will hold an investor relations (IR) meeting. The company will announce its Q2 2025 earnings, key business performance, and future growth plans. Detailed information on the main causes of the Q1 loss and solutions, as well as the growth potential of new businesses such as EUV pellicles and cryogenic chillers, is expected to be revealed.

2. Q1 Earnings Analysis: Why the Loss?

FST recorded a consolidated net loss of -235 million KRW in Q1 2025. This is attributed to seasonal factors (off-season in Q1), delayed integration effects after the Clanet merger, and one-off costs (foreign exchange losses and translation losses). However, from a long-term perspective, a positive outlook can be maintained considering the growth potential of new businesses such as EUV pellicles and cryogenic chillers, and FST’s high market share.

3. Key IR Focus Points and Stock Outlook

The key points to watch for in this IR are as follows:
- Q2 Earnings: Whether FST returns to profitability and the scale of profit will significantly impact the stock price.
- New Business Updates: Announcements regarding specific sales and order status of EUV pellicles and cryogenic chillers, along with future growth strategies, will significantly influence investor sentiment.
- Risk Management: FST’s strategies to address external factors such as rising raw material prices and exchange rate fluctuations will be crucial in alleviating investor uncertainty.
Positive IR outcomes can act as momentum for stock price increases, while negative news or increased uncertainty can lead to declines.

4. Action Plan for Investors

Before making investment decisions, it’s essential to thoroughly review the IR content and analyze macroeconomic indicators and industry trends. In particular, referring to Gartner’s semiconductor market forecast report is recommended for a more in-depth analysis of FST’s business outlook. While past stock data can be used as a reference, remember that it does not guarantee future performance.
Frequently Asked Questions

What are FST’s main businesses?

FST manufactures precision equipment used in various industries such as semiconductors, displays, and secondary batteries. Their main products include pellicles, chillers, and scrubbers.

What is an EUV pellicle?

An EUV pellicle is a thin film that protects the photomask during the EUV (extreme ultraviolet) lithography process. EUV lithography is an essential technology for next-generation semiconductor production, and the EUV pellicle plays a vital role in improving the yield of this process.

Where can I find FST’s IR information?

FST’s IR materials can be found on the company’s website or the Financial Supervisory Service’s Electronic Disclosure System (DART).
07/23/2025