Korea Stock Market Insights

Tag: Genomics

  • JSLink Issues ₩12B Convertible Bonds: Growth Opportunity or Investment Risk?



    JSLink Issues ₩12B Convertible Bonds: Growth Opportunity or Investment Risk? 대표 차트 이미지






    1. JSLink’s ₩12 Billion CB Issuance: What Happened?

    On September 22, 2025, JSLink announced its decision to issue ₩12 billion worth of private convertible bonds. The bonds carry a coupon rate of 2% and a maturity rate of 8%, with ‘Rare Earth Mobility Investment Association’ as the main investor. The payment date is October 2, 2025, and the conversion period is from October 2, 2026, to September 2, 2028.

    2. Why Issue Convertible Bonds?

    According to the disclosure, JSLink plans to use the funds raised through this CB issuance to invest in its new permanent magnet manufacturing business and strengthen its existing genomics and healthcare business. Having recently achieved profitability and secured growth momentum, JSLink is interpreted as seeking to secure future growth engines and strengthen its market competitiveness through this investment.

    3. So, What’s the Impact on Company Value?

    • Positive aspects: Securing funds for business expansion and R&D investment, potential debt reduction upon conversion, increased growth expectations
    • Negative aspects: Potential equity dilution upon conversion, interest expense burden due to the 8% maturity rate, possibility of conversion price adjustments, impact of macroeconomic variables

    4. What Should Investors Watch Out For?

    Investors should carefully analyze the impact of the CB conversion ratio, conversion timing, and potential conversion price adjustments on future shareholder value. It’s also crucial to continuously monitor the performance of the new business, macroeconomic variables (exchange rates and interest rates), and the profitability of the existing business. Considering JSLink’s history of financial difficulties, investment decisions should be made cautiously.



    FAQ

    What are convertible bonds?

    Convertible bonds (CBs) are issued as debt but give the holder the right to convert them into shares of the issuing company’s stock after a certain period.

    How does a CB issuance affect stock prices?

    In the short term, concerns about increased stock supply can lead to price declines, but in the long term, stock prices may rise due to company growth.

    What is JSLink’s new business?

    In addition to its existing genomics and healthcare business, JSLink is pursuing a permanent magnet manufacturing business, essential for future industries such as electric vehicles and robotics.









    JSLink Issues ₩12B Convertible Bonds: Growth Opportunity or Investment Risk? 관련 이미지
    JSLink Issues ₩12B Convertible Bonds: Growth Opportunity or Investment Risk? 관련 이미지




  • Theragen Etex H1 2025 Earnings Analysis: Genomics Growth vs. Pharma Sluggishness – Investment Strategies?

    1. What Happened? H1 2025 Earnings Breakdown

    Theragen Etex reported revenue of KRW 668 billion, operating loss of KRW 4 billion, and net income of KRW 7 billion for the first half of 2025. While exceeding market forecasts, the year-over-year decline in revenue and operating profit remains a concern. The decline in pharmaceutical sales is particularly notable, outweighing the growth in the genomics segment.

    2. Why These Results? Analyzing the Underperformance

    Increased competition in the pharmaceutical market and price reductions for certain products contributed to the decline in pharmaceutical sales. Conversely, the genomics segment shows promise, driven by government project awards and active R&D investment. However, its current revenue contribution remains low, hindering short-term profitability.

    3. What’s Next? Outlook and Investment Strategies

    Theragen Etex’s future hinges on the growth of its genomics business and the turnaround of its pharmaceutical segment. While genomics gains momentum through government support and R&D, improving pharmaceutical performance is crucial. Investors should closely monitor the progress of the genomics segment and the company’s strategies to enhance competitiveness in the pharmaceutical sector.

    4. Investor Action Plan

    • Track key performance indicators for the genomics business (progress of government projects, new service launches, commercialization achievements).
    • Evaluate strategies to address declining pharmaceutical sales and improve profitability.
    • Monitor financial health indicators (debt-to-equity ratio, debt structure).
    • Analyze the company’s response to macroeconomic changes.

    Frequently Asked Questions

    What are Theragen Etex’s main businesses?

    Theragen Etex operates in the pharmaceutical and healthcare/genomics analysis sectors.

    How did Theragen Etex perform in H1 2025?

    The company reported revenue of KRW 668 billion, an operating loss of KRW 4 billion, and net income of KRW 7 billion. While beating market expectations, performance declined year-over-year.

    What are key considerations for investing in Theragen Etex?

    Investors should consider the underperforming pharmaceutical segment alongside the growth potential of genomics. Changes in management and the macroeconomic environment should also be monitored.

  • JS Link Convertible Bond Issuance: Crisis or Opportunity? (July 2025)

    1. JS Link’s 20 Billion KRW Convertible Bond Issuance: What Happened?

    On July 22, 2025, JS Link issued 20 billion KRW worth of convertible bonds. This represents 5.57% of the company’s market capitalization at the time of issuance. The bonds were privately placed with MG Value Up No. 2 Private Equity Fund. The conversion price is set at 13,249 KRW, with a maturity interest rate of 6%.

    2. Why the Convertible Bond Issuance? Diversification and Funding

    JS Link issued the convertible bonds to secure funding for its new permanent magnet business and offset the decline in its existing genomics business. The company faces challenges due to decreased sales of COVID-19 diagnostic kits and increased market competition. Securing future growth engines is crucial for the company’s survival.

    3. Impact of the Convertible Bond Issuance

    • Positive Aspects: Securing investment funds for the new business offers potential for long-term growth. The conversion price is set lower than the market price, minimizing the dilution of shareholder value.
    • Negative Aspects: The 6% maturity interest rate could increase the financial burden. There’s a possibility of shareholder value dilution upon conversion.

    4. Investor Action Plan

    Investors considering JS Link should carefully analyze the impact of the convertible bond issuance on the company’s value. It’s crucial to consider the growth potential of the permanent magnet business, the recovery potential of the genomics business, and the overall financial stability before making investment decisions. Closely monitor future business reports and financial data, and pay attention to changes in market conditions.

    Frequently Asked Questions

    What are convertible bonds?

    Convertible bonds (CBs) are a type of bond that can be converted into shares of the issuing company’s stock after a certain period.

    What are JS Link’s main businesses?

    JS Link’s primary businesses are genomic analysis and permanent magnets.

    How will this convertible bond issuance affect the stock price?

    While it may negatively impact the stock price in the short term, it has the potential to positively influence it in the long term depending on the growth of the new business.

  • JS Link Rights Offering: A Leap into Permanent Magnets? Risks and Opportunities for Investors

    1. What is JS Link’s Rights Offering?

    JS Link is issuing 1,742,768 new shares at ₩11,476 per share. The goal is to raise capital to revitalize the struggling genomics business and expand investment in the promising permanent magnet business.

    2. Why the Rights Offering?

    The existing genomics business has suffered declining profitability due to the end of the COVID-19 diagnostic kit boom and increased competition. The rights offering aims to address this and capitalize on the opportunities in the permanent magnet market, driven by the US-China trade war and rare earth supply chain restructuring. Major shareholder participation increases the likelihood of a successful offering, but stock dilution is inevitable.

    3. Impact on Investors

    • Existing Business (Genomics): Sensitive to exchange rate fluctuations (EUR_KRW, USD_KRW). Potential for recovery if funds are used for R&D and marketing.
    • New Business (Permanent Magnets): Risks and opportunities related to raw material prices (crude oil, gold), interest rates (US 10-Year Treasury, US Fed Funds Rate, ECB Refi Rate), and shipping costs (Baltic Dirty Tanker Index). Market entry, technology acquisition, and competitive advantage are key.
    • Financial Stability: Short-term improvement, but long-term stability depends on the success of the new business. Monitor key financial indicators such as debt ratio and liquidity ratio, as well as Korean 10-Year Treasury and Bank of Korea Base Rate.
    • Stock Price: Potential for short-term decline, but long-term upside potential depends on new business performance. Continuous monitoring of stock price trends after the announcement is crucial.

    4. Investor Action Plan

    Before investing, it is essential to review and analyze additional information, including past financial data, recent stock charts, market competition, funding plans, and detailed plans for the permanent magnet business. Continuous attention to external factors such as geopolitical events and raw material price fluctuations is also crucial.

    Frequently Asked Questions

    What is a rights offering?

    A rights offering is a way for a company to raise capital by issuing new shares to existing shareholders.

    What is the purpose of JS Link’s rights offering?

    To revive the genomics business and expand investment in the permanent magnet business.

    What are the advantages and disadvantages of a rights offering?

    The advantage is that it allows companies to raise capital without increasing debt. The disadvantage is that it can dilute the value of existing shares.