1. What’s Happening?: Daehan Optoelectronics’ Convertible Bond Exercise

Daehan Optoelectronics plans to convert 5,868,635 convertible bonds into shares on August 19, 2025. The conversion price is KRW 947, lower than the current stock price (KRW 1,145).

2. Why Does it Matter?: Impact on Stock Price and Financial Structure

The convertible bond exercise will significantly increase the number of outstanding shares, which could put downward pressure on the stock price in the short term. There is also a possibility of dilution of existing shareholders’ equity. However, there is also a positive aspect in that the debt-to-equity ratio can be improved by increasing capital.

3. What’s the Outlook?: Short-Term and Long-Term Forecasts

  • Short-term outlook: Downward pressure on the stock price and increased trading volume are expected. If the poor performance continues, the decline could be larger.
  • Long-term outlook: If the financial structure improves through capital increase and earnings recover, there is a possibility of a stock price increase. However, uncertainty remains high at this time.

4. What Should Investors Do?: Action Plan

  • Investors should carefully monitor market reactions after the listing of converted shares and make prudent investment decisions.
  • Carefully review Daehan Optoelectronics’ efforts to improve earnings and its financial restructuring plan.
  • It is important to check the company’s response strategy to changes in the macroeconomic environment (exchange rates, interest rates, etc.).