EUV Pellicle - Korea Stock Market Insights

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

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.

Tag: EUV Pellicle

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