Korea Stock Market Insights

Tag: Risk Management

  • EID (093230) Delisting Confirmed: What Investors Need to Know

    EID (093230) Delisting Confirmed: What Investors Need to Know 대표 차트 이미지

    1. What Happened to EID?

    EID received a delisting decision on February 14, 2025, which was confirmed on August 27 after their injunction request was denied. The trading halt period is scheduled from September 2nd to 10th.

    2. Why is EID Being Delisted?

    EID has faced persistent operating losses, declining revenue, and auditor disagreements, indicating severe financial distress. Despite venturing into various businesses like oil, real estate, secondary batteries, and NFTs, the company failed to generate significant returns. Allegations of embezzlement and lawsuits further exacerbated the situation. The table below illustrates EID’s deteriorating financial performance.

    Indicator Dec 2022 Dec 2023 Dec 2024 Dec 2025
    Revenue 6,994 4,167 4,005 3,304
    Operating Income 629 -133 0 -97
    Net Income 454 -140 205 -88

    3. What Should Investors Do?

    Stock prices can fluctuate drastically during the trading halt period. Investors should understand the situation and exercise extreme caution. Participating in trading during this period carries significant risk, and the chances of recovering investment capital are minimal. Considering EID’s deteriorating fundamentals, transparency issues, and ongoing lawsuits, further investment should be avoided.

    4. Key Takeaways & Action Plan

    • Understand the Situation: Fully grasp the reasons behind EID’s delisting.
    • Assess the Risks: Carefully consider the price volatility and investment risks during the trading halt period.
    • Invest Cautiously: All investment decisions should be made with extreme caution and at your own risk. Be prepared for potential losses.
    • Stay Informed: Continuously monitor public disclosures and relevant news for the latest updates.

    Frequently Asked Questions (FAQ)

    What is a trading halt period?

    A trading halt period is a designated time before a stock’s delisting when investors are given a final opportunity to sell their shares.

    Can the stock price surge during the trading halt period?

    Yes, it’s possible. However, given the confirmed delisting, such price movements are highly speculative and carry significant downside risk.

    Should I sell my EID shares now?

    With the delisting confirmed, selling your shares during the trading halt period is generally recommended. However, all investment decisions should be made at your own discretion.

    What happens after delisting?

    After delisting, the stock will no longer be traded on the exchange. It may be traded over-the-counter (OTC), but liquidity will likely be low, making trading difficult.

    EID (093230) Delisting Confirmed: What Investors Need to Know 관련 이미지

  • SNU&P (019590) Delisting Imminent: Impact of Resumed Liquidation Trading

    SNU&P (019590) Delisting Imminent: Impact of Resumed Liquidation Trading 대표 차트 이미지

    1. SNU&P: Resumption of Liquidation Trading

    With the court’s dismissal of the injunction, SNU&P will enter liquidation trading from August 28th to September 5th, 2025. This represents the last trading opportunity before delisting, but it also carries extreme stock price volatility and investment risk. During this period, the stock price is likely to plummet, driven by panic selling regardless of the company’s fundamentals.

    2. Why is the Resumption of Liquidation Trading Dangerous?

    Stock prices often fall sharply during liquidation trading. Investors try to sell their shares to minimize losses before delisting, but a lack of buying interest can lead to a liquidity crunch. This creates the risk of being unable to sell at the desired time and incurring significant losses. Furthermore, after delisting, trading becomes impossible, making it difficult to recover investments.

    3. SNU&P’s Current Situation and Future Outlook

    SNU&P recorded a net loss of KRW 4.488 billion in the first half of 2025, showing a significant deterioration in profitability. Retained earnings also stand at a significant deficit of KRW -24.527 billion. External factors such as the downturn in the venture investment market and interest rate hikes are also acting as negative factors. Following delisting, difficulties in raising capital, restrictions on corporate activities, and a decline in external credibility are expected to make it difficult for the company to operate normally.

    4. Investor Action Plan: What Should You Do?

    Current Shareholders: Sell shares as soon as possible during the liquidation trading period to minimize losses.
    Potential Investors: Absolutely avoid investing in SNU&P.

    Q: When is the liquidation trading period for SNU&P?

    A: It is for 7 trading days, from August 28th to September 5th, 2025.

    Q: Is it okay to invest during the liquidation trading period?

    A: Absolutely not. Stock price volatility is extreme during this period, and the possibility of losing your principal investment is very high.

    Q: What happens to SNU&P shares after delisting?

    A: After delisting, shares cannot be traded, making it difficult to recover your investment.

    SNU&P (019590) Delisting Imminent: Impact of Resumed Liquidation Trading 관련 이미지

  • Kolon Global Hit with ₩44.2B Lawsuit: What Investors Need to Know

    Kolon Global Hit with ₩44.2B Lawsuit: What Investors Need to Know 대표 차트 이미지

    1. The ₩44.2B Lawsuit: What Happened?

    Kolon Global is being sued by a redevelopment association for ₩44.2 billion, alleging unjust enrichment. The core issue revolves around claims of improper gains during a redevelopment project. Kolon Global has retained legal counsel and is actively defending itself.

    2. Potential Impact of the Lawsuit

    This lawsuit could have various impacts on Kolon Global’s financial standing and stock price. In the short term, it could increase financial burden and negatively affect investor sentiment. Long-term impacts could include changes to profitability and financial structure, depending on the outcome, and potential effects on future redevelopment contracts.

    3. What Should Investors Do?

    Investors should closely monitor the lawsuit’s progress and any official announcements from the company. It’s crucial to reassess investment strategies, considering the potential risks associated with the lawsuit’s outcome. Avoid hasty decisions and prioritize careful investment choices based on objective information.

    4. Investor Action Plan

    • Stay Informed: Continuously monitor Kolon Global’s official announcements and related news for updates on the lawsuit.
    • Assess Risk: Evaluate the potential for loss based on possible outcomes and adjust your investment strategy accordingly.
    • Seek Advice: Consult with a financial advisor if necessary to adjust your portfolio or take other appropriate actions.

    Frequently Asked Questions

    Q: How might this lawsuit affect Kolon Global’s stock price?

    A: In the short term, negative investor sentiment could put downward pressure on the stock. The medium to long-term impact will depend heavily on the outcome of the lawsuit, potentially increasing volatility.

    Q: How is Kolon Global responding to the lawsuit?

    A: Kolon Global has stated that they have retained legal counsel and are actively defending themselves through the appropriate legal channels.

    Q: What actions should investors take?

    A: Investors should closely monitor the progress of the lawsuit and company announcements. It’s advisable to reassess investment strategies and consult with a financial advisor if needed.

    Kolon Global Hit with ₩44.2B Lawsuit: What Investors Need to Know 관련 이미지
    Kolon Global Hit with ₩44.2B Lawsuit: What Investors Need to Know 관련 이미지

  • Coway H1 2025 Earnings Analysis: Solid Growth, Hidden Opportunities, and Risks

    1. Coway H1 2025 Earnings: Key Highlights

    Coway achieved consolidated revenue of KRW 2.4338 trillion and operating profit of KRW 453.96 billion in H1 2025, maintaining robust growth. With rental sales accounting for 90.7% of total revenue, the company boasts a stable revenue structure, and its expansion into overseas markets further enhances its growth potential.

    2. Positive Factors: Drivers of Continued Growth

    • Strong Rental Business: 7.36 million rental accounts generate consistent cash flow and provide resilience against economic fluctuations.
    • Overseas Expansion: Ventures into markets like Malaysia, the US, and China contribute to growth diversification.
    • Business Diversification: Establishing new subsidiaries secures future growth engines.

    3. Potential Risks: Investor Considerations

    • Subsidiary Risk: Potential losses from some subsidiaries and the volatility of their financial status require attention.
    • Virtual Asset Investment: Investments in virtual assets carry significant volatility and risk of value erosion.
    • Macroeconomic Factors: Responding to changes in exchange rates, interest rates, and raw material prices is crucial.

    4. Investment Strategy: How to Approach Coway Investments

    Coway presents an attractive investment opportunity with its stable business model and growth potential. However, before making investment decisions, it’s essential to carefully review the detailed H1 2025 earnings analysis, management’s future strategies, and their plans to address the risks mentioned above, all to be revealed at the IR meeting on August 25th. Continuous monitoring of macroeconomic indicators and market expectations is also crucial.

    Frequently Asked Questions

    What is Coway’s core business?

    Coway’s core business is its rental service, which includes water purifiers, air purifiers, and bidets. Rental sales accounted for 90.7% of total revenue in the first half of 2025.

    What is the status of Coway’s overseas expansion?

    Coway has expanded its business into overseas markets such as Malaysia, the US, and China. Growth in the North American market is particularly anticipated.

    What should investors be aware of when investing in Coway?

    Investors should consider the financial status of subsidiaries, risks associated with virtual asset investments, and macroeconomic factors. It’s also important to review the information presented at the IR meeting on August 25th.

  • Foodwell Stock Forecast: Major Shareholder Increases Stake – Investment Strategy?

    1. What Happened?

    Foodwell’s major shareholder, Sung Min-gyeom, increased his stake from 51.44% to 51.71%, a 0.27%p increase. This occurred through open market purchases and stock gifts by related parties.

    2. Why Does it Matter?

    This stake increase signifies strengthened management control and stability. It reduces the threat of hostile M&A, and the purchases by related parties can be interpreted as a positive signal regarding the company’s future growth potential. Foodwell is showing growth in both sales and operating profit based on solid fundamentals, and is also diversifying its business through the incorporation of subsidiaries.

    3. What’s Next?

    In the short term, this is likely to have a positive impact on the stock price. However, the medium to long-term stock price trend will depend on the sustainability of fundamental improvements, new business performance, and changes in the market environment. Risk factors such as the sluggish performance of the health functional food division and customer concentration should also be considered.

    4. What Should Investors Do?

    While short-term stock price momentum can be expected, long-term investment requires careful observation of business competitiveness, new business performance, and financial soundness. It is important to continuously monitor factors such as improvement in the health functional food division’s performance, diversification of the sales structure, response to exchange rate and interest rate volatility, and management of accounting transparency.

    Frequently Asked Questions

    What is Foodwell’s main business?

    Foodwell is a food company that manufactures and sells jams/syrups, frozen foods/purees, beverage bases, and health functional foods.

    Will this change in stake have a positive impact on the stock price?

    In the short term, it is likely to act as a positive momentum, but the medium to long-term stock price may vary depending on fundamentals and market conditions.

    What should I be aware of when investing in Foodwell?

    Consider risk factors such as the sluggish performance of the health functional food division and the concentration of major customers.

  • Samsung Engineering IR Analysis: Is the ₩10.8T Order Backlog a Real Opportunity?

    1. What Happened?: Samsung Engineering’s IR Presentation

    Samsung Engineering recently held an investor relations (IR) presentation, sharing key management updates and future strategies with investors and analysts, followed by a Q&A session.

    2. Why It Matters: The ₩10.8 Trillion Backlog and Beyond

    The core focus of the IR was the impressive ₩10.8 trillion order backlog. Secured through 21 individual sales and supply contracts, this backlog is expected to underpin stable revenue for the next 2-3 years. However, there are potential risks, including declining profitability in the chemical segment, increasing financial leverage, and foreign exchange fluctuations.

    • Strengths: Robust order backlog, global project experience, synergy with key clients like Samsung Electronics, investment in green solutions
    • Weaknesses: Declining profitability in the chemical segment, increasing financial leverage, foreign exchange risk, project execution risks

    3. What’s Next?: Impact on Investors

    If the IR presentation effectively conveys a positive growth narrative and robust risk management strategies, it could improve investor sentiment and boost the stock price. Conversely, negative information or failure to meet market expectations could lead to a decline in share price.

    4. Investor Action Plan: Key Takeaways

    Investors should focus on the following key takeaways:

    • New order trends and outlook
    • Strategies for improving profitability in the chemical segment
    • Progress and achievements in green solutions and new businesses
    • Financial health management plan
    • Strategies for managing macroeconomic variables
    Q: What are Samsung Engineering’s main businesses?

    A: Samsung Engineering’s core businesses include EPC (Engineering, Procurement, and Construction), plant construction, and high-rise building construction.

    Q: What is Samsung Engineering’s current order backlog?

    A: According to their recent IR presentation, Samsung Engineering has a current order backlog of approximately ₩10.8 trillion.

    Q: What are the key risks to consider when investing in Samsung Engineering?

    A: Investors should consider the declining profitability in the chemical segment, increasing financial leverage, and exposure to foreign exchange fluctuations. It is also important to monitor new order trends, progress in new businesses, and the company’s financial health management plan.

  • Cosmecca Korea IR Analysis: Strong Q2 Earnings, What’s the Future Growth Strategy?

    1. Cosmecca Korea Q2 Earnings Analysis: Maintaining Robust Growth

    Cosmecca Korea continued its robust growth in the first half of 2025, recording sales of KRW 280.1 billion (a 4% increase year-on-year) and operating profit of KRW 35.3 billion (an 11% increase year-on-year). The improvement in profitability through efficient cost management is particularly noteworthy.

    2. Growth Drivers and Future Strategies: R&D Investment, Global Expansion, ESG Management

    Cosmecca Korea maintains a high R&D investment ratio, focusing on developing innovative products. Global production bases in Korea, China, and the US are expected to contribute to establishing a stable supply chain and responding to global demand. Furthermore, strengthening ESG management is expected to positively impact sustainable growth and enhance the company’s image.

    3. Potential Risk Factors: Debt Ratio, US Market Dependence, New Business

    Along with the positives, there are risk factors that investors should be aware of. Monitoring financial stability is necessary due to the rising debt ratio (99.05%), and the importance of US market performance has increased due to growing dependence on the US subsidiary. The uncertainty surrounding new businesses, such as the investment in new technology businesses related to the Pangyo land, should also be considered.

    4. Action Plan for Investors: Analyze IR Materials and Monitor Macroeconomic Changes

    Investors should thoroughly analyze the IR presentation materials and Q&A session and compare Cosmecca Korea’s performance and strategies with competitors to obtain information necessary for investment decisions. It is also important to continuously monitor future macroeconomic trends and evaluate the company’s response strategies.

    What were Cosmecca Korea’s Q2 earnings?

    Sales were KRW 280.1 billion (up 4% YoY) and operating profit was KRW 35.3 billion (up 11% YoY).

    What are Cosmecca Korea’s main growth strategies?

    Developing innovative products through R&D investment, expanding global production bases, and strengthening ESG management.

    What are the key risks to consider when investing in Cosmecca Korea?

    Rising debt ratio, increasing dependence on the US market, and uncertainty surrounding new businesses.

  • Shinhan Financial Group (055550) H1 2025 Earnings Analysis: Solid Growth, but Hidden Risks?

    1. What Happened? Shinhan Financial Group Announces H1 2025 Earnings

    Shinhan Financial Group announced its H1 2025 financial results and held a corporate briefing on August 26, 2025. While the group demonstrated robust overall profit growth, some subsidiaries experienced slower performance and potential risks were also identified.

    2. Why Does It Matter? Key Investment Points

    Positive Factors:

    • Solid group profit growth and increase in non-interest income
    • Stable capital adequacy maintained
    • Proactive shareholder return policy (dividend payments, share buybacks/cancellation)
    • Strengthened digital competitiveness and secured future growth engines (AI, platform, senior/asset management)
    • Reinforced ESG management

    Potential Risks:

    • Slowing profitability at Shinhan Card (intensified competition, rising procurement costs, increasing delinquency rates)
    • Risks related to real estate PF and alternative investments
    • Macroeconomic uncertainties (global economic slowdown, high interest rates, trade policy uncertainty)

    3. So What? Investment Strategy

    Shinhan Financial Group demonstrates robust performance based on a stable business structure and sound financials. Shareholder return policies and digital/ESG management efforts are also positive. However, the slowdown in Shinhan Card’s performance and macroeconomic uncertainties are important risk factors to consider when investing. Therefore, a ‘Neutral’ investment opinion is maintained, and close monitoring of risk management capabilities, business portfolio adjustments, and strategic responses to external factors is necessary.

    4. Investor Action Plan

    • Monitor Shinhan Card’s performance and risks related to real estate PF
    • Keep an eye on interest rate changes and macroeconomic conditions
    • Check digital transformation strategies and performance
    • Take a long-term investment approach

    Frequently Asked Questions

    What were the key highlights of Shinhan Financial Group’s H1 2025 earnings?

    The group saw robust profit growth, but some subsidiaries, including Shinhan Card, experienced slower performance.

    What are the key risks to consider when investing?

    Investors should consider the slowdown in Shinhan Card’s profitability, risks related to real estate PF, and macroeconomic uncertainties.

    What is the investment strategy going forward?

    A neutral investment opinion is maintained, and it’s crucial to monitor risk management and changes in market conditions.

  • SD Biotech Faces Delisting: Appeal Filed, Investor Strategies

    1. What Happened?: SD Biotech Appeals Delisting Decision

    The KOSDAQ Market Committee deliberated and resolved to delist SD Biotech on July 25, 2025. The company filed an appeal on August 18th. The Korea Exchange will hold another KOSDAQ Market Committee meeting by September 15th to make a final decision on the delisting and potential improvement period.

    2. Why is This Happening?: Weak Fundamentals and Financial Distress

    SD Biotech has faced declining revenues, volatile operating profits, and increasing debt ratios in recent years. The company’s history of undergoing rehabilitation proceedings in 2023 and its current accumulated deficit raise serious concerns about its financial health. While recent corrections to its semi-annual report improved net income, this was merely an accounting adjustment and does not address the underlying issues.

    3. What’s Next?: Uncertain Future and Investment Risks

    While the appeal buys SD Biotech some time, its future on the KOSDAQ remains uncertain. The final decision of the Market Committee will significantly impact the stock’s volatility and trading volume. Delisting could result in substantial losses for investors.

    4. What Should Investors Do?: Risk Management and Information Monitoring

    • Avoid New Investments: Investors should absolutely refrain from making new investments in SD Biotech.
    • Current Investor Actions: Existing investors should prepare for the possibility of delisting and develop strategies to recover their principal or minimize losses.
    • Stay Informed: Closely monitor the Market Committee’s decision, the company’s appeal arguments, and any proposed improvement plans.
    • Consider Macroeconomic Factors: Pay attention to changes in exchange rates, interest rates, and other macroeconomic indicators that could impact the company.

    Frequently Asked Questions

    Why is SD Biotech facing delisting?

    SD Biotech is facing delisting due to continuous financial deterioration and accumulated deficit, leading to the KOSDAQ Market Committee’s decision.

    When will the appeal decision be announced?

    The final decision is expected to be announced around September 15, 2025, by the KOSDAQ Market Committee.

    What should investors do?

    Investors should avoid any new investments and existing investors should carefully monitor the situation and manage their risk.

  • Shinsung Delta Tech Turns Profitable in Battery Sector: Investment Opportunity?

    1. Shinsung Delta Tech H1 2025: What Happened?

    Shinsung Delta Tech operates across diverse sectors including Home Appliances (HA), Batteries (BA), and Logistics Services (SVC). While consolidated revenue slightly decreased year-over-year, operating profit increased by approximately 8.2% due to improved profitability in the HA segment and the BA segment turning profitable.

    2. What Drove These Changes?

    • HA: Improved profitability through cost reduction and increased OEM/ODM focus. New robot cleaner parts business shows growth potential.
    • BA: Turned profitable due to North American ESS market expansion and facility investments. High growth potential expected.
    • SVC: Stable profit contribution driven by global shipping volume growth trends.

    3. What Does This Mean for Investors?

    Positive Factors: The turnaround in the BA segment, improved profitability in HA, and stable contributions from SVC enhance investment appeal.

    Negative Factors: Vulnerability to exchange rate and interest rate fluctuations, potential global economic slowdown, and investment burden in the BA segment pose risks.

    4. What Actions Should Investors Take?

    • Monitor risk management strategies regarding exchange rate and interest rate fluctuations.
    • Assess the investment performance and profit improvement in the BA segment.
    • Check the company’s efforts in business diversification and maintaining a stable revenue base.
    • Evaluate the growth potential of new businesses, such as robotics.

    Frequently Asked Questions

    What are Shinsung Delta Tech’s main businesses?

    Shinsung Delta Tech operates in Home Appliances (HA), Batteries (BA), and Logistics Services (SVC).

    What are the key highlights of H1 2025 earnings?

    Key highlights include improved profitability in the HA segment, the BA segment turning profitable, and stable profit contribution from the SVC business.

    What should investors consider when investing in Shinsung Delta Tech?

    Investors should consider factors such as exchange rate and interest rate volatility, the potential for a global economic slowdown, and the investment burden related to the BA business.