Major Shareholder Divestment: What Happened?
Mr. Kim sold his entire stake of 2,868,103 shares between July 31st and August 12th, 2025, through on-market transactions, reducing his ownership from 7.18% to 0%. This move contradicts his initial investment objective of ‘simple investment’ and has sent ripples through the market.
Why Now? Exploring the Reasons Behind the Divestment
While the official reason for Mr. Kim’s divestment remains undisclosed, Kodez Combine’s recent poor performance is a likely contributing factor. The company reported an 8.3% year-over-year decline in revenue and a significant 54.6% drop in operating profit for Q2 2025. Increasing inventory levels and declining inventory turnover also suggest challenges in inventory management. Furthermore, the recent rise in the USD/KRW exchange rate could exacerbate these issues by increasing import costs and further pressuring profitability. Although the current trend of interest rate freezes and cuts by major central banks may offer some relief on financing costs, the volatility of international oil prices and shipping indicators remains a concern.
Impact on Investors
This significant divestment by a major shareholder is likely to exert downward pressure on the stock price. It could also negatively impact investor sentiment and raise doubts about the company’s fundamental strength. Short-term price volatility is expected, and the company’s ability to improve its performance will be crucial for its mid-to-long-term stock price trajectory.
Investor Action Plan
- Short-term Investors: Be cautious of increased price volatility and consider the potential for short-term losses. Factor in the possibility of further negative news and make prudent investment decisions.
- Mid-to-Long-term Investors: Carefully analyze the company’s fundamentals and future business strategy before making any investment decisions. Continuous monitoring of management’s response and performance improvement will be essential.
Why did the major shareholder divest their entire stake?
While no official reason was given, the divestment likely stems from Kodez Combine’s recent underperformance and the uncertain economic climate.
How will this divestment affect the stock price?
It’s likely to put downward pressure on the stock price in the short term. The stock’s future trajectory will depend on how the market absorbs the selloff and whether investor confidence returns.
How should investors react?
Short-term investors should be wary of increased price volatility, while long-term investors should analyze the company’s fundamentals and future strategy before making decisions.
