1. What’s Happening? Hyundae Saryo’s Delisting Crisis
Hyundae Saryo is currently undergoing delisting procedures from the KOSDAQ market and is preparing an appeal. Delisting poses a significant threat to the company’s continued existence.
2. Why is This Happening? Analyzing the Root Causes
- Business Restructuring and Sales Decline: Discontinuation of the bio business has led to a sharp decline in sales, and profitability in the core feed business remains stagnant.
- Deteriorating Financial Health: Declining capital, low ROE, high PBR, and other financial indicators are worsening, significantly reducing investment attractiveness.
- Unstable Macroeconomic Environment: A rising exchange rate, interest rate hikes, and increasing logistics costs are further complicating Hyundae Saryo’s business environment.
3. What’s Next? Future Outlook for Hyundae Saryo
The outcome of the delisting appeal will determine Hyundae Saryo’s future. The company’s fate will depend heavily on the results. A positive outlook is difficult to foresee at this time.
4. What Should Investors Do? Investment Strategies and Action Plan
- Acknowledge the Delisting Risk: Investors must be fully aware of the potential for total loss of investment principal.
- Analyze Core Business Turnaround Potential: Regardless of the delisting outcome, a realistic assessment of the feed business’s potential for recovery is crucial.
- Stay Informed: Continuously monitor public disclosures, news, and management comments for the latest information to inform investment decisions.