Korea Stock Market Insights

Tag: JS Link

  • JS Link After-Hours Trading Deep Dive: Opportunity or Red Flag?





    What Happened? JS Link After-Hours Trading Analysis

    After the market closed on September 11, 2025, JS Link experienced a significant after-hours trading event with a volume of 437,987 shares, totaling approximately 7.8 billion KRW. Notably, institutional investors sold off around 5.6 billion KRW worth of shares, while foreign investors bought approximately 580 million KRW. This represents about 1.5% of the company’s market capitalization (520.4 billion KRW), which might not significantly impact short-term stock prices. However, after-hours trading often reflects crucial information, warranting further analysis of its underlying causes.

    Why Did It Happen? Fundamental and Financial Analysis

    JS Link is pursuing business diversification, shifting from its existing bio and healthcare business to permanent magnets and rare earth magnet recycling. While this diversification strategy appears positive for long-term growth, the company’s financial status, as of the 2024 business report, raises concerns. With retained earnings showing a deficit of 86.2 billion KRW and an operating loss of 9.1 billion KRW, the financial burden of investments in new businesses is a significant risk. This financial difficulty could be linked to the substantial sell-off by institutional investors. Furthermore, the current order backlog of 7.2 billion KRW, while contributing to short-term sales, remains insufficient considering the expected contribution from the new business segments.

    What’s the Investment Strategy? Market Context and Recommendations

    Recent macroeconomic indicators, such as exchange rates, interest rates, and oil prices, have remained relatively stable. However, the volatility of exchange rates remains a concern, particularly given the new business’s reliance on raw material imports. In the short term, investors should observe the market’s reaction to the sell-off and seek further information regarding the motivations behind it. A long-term strategy requires close monitoring of the new business’s performance, the improvement of profitability in existing segments, and the company’s efforts to strengthen its financial health.

    Key Action Plan for Investors

    • Short-term: Verify the reasons behind the after-hours trading and monitor stock price trends.
    • Long-term: Monitor the progress of new business ventures, profitability of existing business, and efforts to improve the financial structure.


    Frequently Asked Questions

    What are JS Link’s main businesses?

    JS Link is diversifying its business portfolio beyond its existing bio and healthcare operations to include permanent magnets and rare earth magnet recycling.

    Who were the main parties involved in the after-hours trading?

    Institutional investors sold a large volume of shares (approx. 5.6 billion KRW), while foreign investors purchased a smaller amount (approx. 580 million KRW).

    What is the current state of JS Link’s financials?

    As of 2024, JS Link reported a deficit in retained earnings of 86.2 billion KRW and an operating loss of 9.1 billion KRW. Improving the financial situation is crucial.

    What should investors be cautious of?

    While the business diversification holds growth potential, investors should exercise caution considering the current financial difficulties and the reasons behind the large sell-off in after-hours trading.



  • JS Link Convertible Bond Exercise: Opportunity or Risk?

    What Happened?

    JS Link announced the exercise of its 9th convertible bond, with 404,889 shares set to be listed on September 5, 2025. The conversion price is set at 2,661 KRW, significantly lower than the current stock price of 17,160 KRW.

    Why Does it Matter?

    This convertible bond exercise will lead to an increase in circulating supply, raising concerns about stock dilution. However, the conversion of debt into equity could positively impact the company’s financial structure. Analyzing the potential combined effect of these opposing factors on the stock price is crucial.

    What Should Investors Do?

    Investors should focus on JS Link’s fundamentals rather than short-term price fluctuations. Carefully consider the performance of the new permanent magnet business, the recovery of the existing genomic analysis business, the stability of the financial structure, and changes in management before making investment decisions. The success of the permanent magnet business will be a key factor influencing future stock performance.

    Action Plan for Investors

    • Short-term investors: Be mindful of increased price volatility and consider short-term profit-taking strategies. However, be aware of the downside risk from the increased circulating supply.
    • Long-term investors: Continuously monitor JS Link’s fundamentals, focusing on the performance of the new business and improvements in its financial structure.

    Frequently Asked Questions

    What are convertible bonds?

    Convertible bonds are a type of debt security that gives the holder the option to convert it into a predetermined number of shares of the issuer’s common stock.

    How does a convertible bond exercise affect the stock price?

    It can act as a short-term positive catalyst, but it can also lead to stock dilution due to the increased number of shares.

    What are the key investment considerations for JS Link?

    Investors should consider the uncertainties surrounding the new business, the underperformance of the existing business, and the company’s weak financial structure.

  • JS Link Acquires US Magnet Company: Investment Opportunity?

    1. JS Link Acquires US Magnet Company: What Happened?

    On August 11, 2025, JS Link announced a ₩2.8 billion investment (5.35% of its capital) to acquire 100% of JS Link America, Inc., a US permanent magnet producer. This strategic move aims to establish a stable resource supply chain and strengthen global competitiveness.

    2. Why Acquire a US Company?

    JS Link has been facing financial difficulties due to continuous declines in sales and operating losses. To overcome these challenges and secure future growth engines, the company is focusing its investments on the permanent magnet business, a key material for electric vehicles. The acquisition is interpreted as an attempt to accelerate global market entry, particularly in North America, and to diversify away from the China-centric rare earth supply chain.

    3. The Acquisition’s Impact: What to Expect?

    • Positive Impacts:
      • Strengthened global competitiveness and a secure resource supply chain.
      • Accelerated entry into the North American market and a proactive response to the restructuring of the global supply chain.
    • Potential Risks:
      • Increased short-term financial burden due to the ₩2.8 billion investment.
      • Risks associated with integrating and operating the overseas subsidiary.

    4. What Should Investors Do?

    While the acquisition is positive in the long term, short-term financial burdens and business uncertainties must be considered. Therefore, a ‘cautious approach with a positive outlook’ is recommended. It’s crucial to make investment decisions while closely monitoring the following:

    • Progress of the permanent magnet business
    • Performance of the overseas subsidiary
    • Efforts to improve financial soundness
    • Macroeconomic variables such as exchange rates and raw material prices

    Frequently Asked Questions

    What is JS Link?

    JS Link is a company investing in the permanent magnet manufacturing business. They are accelerating global market entry with the recent acquisition of a US permanent magnet producer.

    Why is this acquisition important?

    This acquisition is a crucial strategic decision for JS Link to secure future growth engines and strengthen its global competitiveness.

    What are the investment precautions?

    Investors should be cautious of the increased short-term financial burden, the uncertainties surrounding the new business’s success, and the influence of macroeconomic variables.

  • JS Link Announces Convertible Bond Exercise: What’s Next for the Stock Price?

    1. What Happened?

    JS Link announced on July 30, 2025, the exercise of convertible bonds (CBs) for 693,455 shares, representing 2.56% of its market capitalization. The new shares are scheduled to be listed on August 13th. The conversion price is significantly lower than the current market price, leading to concerns about short-term stock dilution.

    2. Why This Decision?

    JS Link needs funding to address the downturn in its existing genomic analysis business and invest in its new permanent magnet business. The proceeds from this exercise will be used for the new venture. However, the new business’s success remains uncertain, and the initial investment costs are substantial.

    3. What’s the Impact on the Stock Price?

    In the short term, the increased number of shares could dilute earnings per share (EPS), potentially leading to a stock price decline. However, if the new business is successful, it could provide long-term growth momentum. This creates a situation with both short-term risks and long-term opportunities. Additionally, external factors such as raw material prices, exchange rates, and interest rates can also influence the stock price.

    4. What Should Investors Do?

    • Short-term investors: Exercise caution due to increased stock price volatility.
    • Long-term investors: Carefully analyze the growth potential and risks of the new business. Consider the company’s financial stability, competitiveness, and risk management strategies before making investment decisions.
    Does a convertible bond exercise always negatively impact stock prices?

    Not necessarily. While short-term dilution can occur, if the raised capital fuels growth in a new venture, it can have a positive long-term impact.

    What is JS Link’s new business?

    Permanent magnets. While external factors like China’s rare earth regulations present opportunities, challenges remain in securing technology and financing.

    What’s the most crucial factor to consider when making investment decisions?

    Holistically assess the new business’s potential, financial stability, and risk management strategies. Focus on a long-term investment strategy rather than short-term price fluctuations.

  • 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.