Korea Stock Market Insights

Tag: Chiller

  • FST Announces ₩20B Convertible Bond Issuance: Impact on Stock Price and Investment Strategy



    FST Announces ₩20B Convertible Bond Issuance: Impact on Stock Price and Investment Strategy 대표 차트 이미지






    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.









    FST Announces ₩20B Convertible Bond Issuance: Impact on Stock Price and Investment Strategy 관련 이미지
    FST Announces ₩20B Convertible Bond Issuance: Impact on Stock Price and Investment Strategy 관련 이미지




  • FST (036810) H1 2025 Earnings Report Analysis: Riding the AI Wave, but Challenges Remain

    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.