1. What Happened?

Dasan Soluetta sold a small portion of its Dasan Networks shares, reducing its stake by 0.01% from 27.75% to 27.74%. The purpose is reported as influencing management rights.

2. Why Does it Matter?

Changes in stakeholders’ stakes can indicate potential shifts in management control. However, this minor change is unlikely to significantly impact the stock price in the short term. Dasan Networks’ fundamentals, particularly the recovery of its network business exports and securing new growth engines, will likely play a more significant role. The residual impact of the DZS Inc. bankruptcy is another key variable.

3. What’s the Current Situation?

Despite revenue growth in the first half of 2025, Dasan Networks experienced a decline in profitability. Positive aspects include growth in the automotive parts segment and the return to operating profit. However, declining network exports, losses related to the DZS Inc. bankruptcy, and negative operating cash flow present challenges.

4. What’s the Outlook?

Amidst macroeconomic uncertainties, the future of Dasan Networks’ stock price depends on the turnaround of its network business, minimizing the impact of the DZS Inc. bankruptcy, and the success of its new businesses. Fluctuations in exchange rates, interest rates, and raw material prices can also affect profitability.

5. What Should Investors Do?

  • Monitor the recovery of the network business, the potential for further losses related to DZS Inc., and the performance of new ventures.
  • Analyze the impact of macroeconomic changes and keep an eye on corporate governance and disclosure transparency.