1. What Happened to STX?
On July 3, 2025, STX was reported to prosecutors for accounting violations, triggering a delisting review. The Korea Exchange confirmed the review on July 24th and will announce the results (delisting, improvement period, trading suspension, etc.) by August 22nd.
2. STX’s Current Situation
As of Q3 2025, STX reported revenue of ₩179.7 billion and a net loss of ₩5.2 billion. Declining revenue and increasing losses point to a severe financial crisis. High debt and continued losses raise doubts about STX’s viability. While there are positives, such as the ‘TrollyGo’ platform launch and increased nuclear component orders, their short-term impact is questionable. PK Valve & Engineering’s low operating rate (38.48%) is another concern.
3. Delisting Probability
Considering the accounting violations, continued net losses, and negative market sentiment, the probability of STX’s delisting is high. The current unstable market conditions (US/European interest rate hikes, commodity price fluctuations, geopolitical risks, etc.) also pose challenges for STX.
4. What Should Investors Do?
Investors should seriously consider the possibility of delisting. Closely monitoring the Korea Exchange’s review results and any further disclosures is crucial for making informed investment decisions.
How likely is STX to be delisted?
Given the accounting violations and continued net losses, the likelihood of delisting is high. However, nothing is certain until the Korea Exchange makes its final decision.
Should I sell my STX stock now?
Investment decisions are personal, but STX currently carries significant risk. Consider the possibility of delisting carefully before making any decisions.
What is the outlook for STX?
The short-term outlook is very negative. The Korea Exchange’s review results and the success of STX’s financial improvement plan will determine its fate.
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