1. What Happened at Sandoll?

On August 6, 2025, Sandoll Communications disclosed a 0.32%p increase in its Sandoll shareholding, from 48.67% to 48.99%, through a large shareholding report. This change resulted from market sales, a rights offering, and modifications to stock option grant methods.

2. Why Does It Matter?

This disclosure signifies more than just a change in ownership. The increased stake of the major shareholder suggests enhanced management control and stability, while the anticipated rights offering could act as a short-term stock price catalyst. However, the possibility of market sales and the actual value creation from the rights offering are key variables determining future stock price trends.

3. Sandoll’s Present and Future

Positive Factors

  • • Growth in font platform and corporate font businesses: Increased sales and operating profit
  • • Expanded R&D investment: Integration of AI technology and web font service enhancements
  • • Business diversification: Entry into mobile font, image/music content markets
  • • Solid financial structure: Ample cash assets and stable capital structure

Considerations

  • • Intensified global competition: Competition with Adobe, Monotype, etc.
  • • Exchange rate volatility: Risk from exchange rate fluctuations due to increasing overseas sales
  • • Uncertainty in new businesses: Uncertainty regarding investment and market entry success

4. What Should Investors Do?

While the short-term outlook suggests a potential stock price increase, a long-term investment perspective requires careful monitoring of the actual impact of the rights offering, changes in the competitive landscape, and market conditions. Interest rates, exchange rates, and overall stock market trends can also affect Sandoll’s stock price, warranting continuous attention.