The Stake Increase: What Happened?
On August 19, 2025, SM High Plus Co., Ltd. acquired an additional 10,000 shares of SM Veccell through on-market purchases. This increased SM High Plus’s stake from 87.52% to 87.53%. This public disclosure of a stake change for management influence purposes provides crucial information for investors.
Turnaround Success and Positive Fundamentals
SM Veccell achieved a turnaround in the first half of 2025, recording sales of KRW 81.497 billion and net income of KRW 1.951 billion. Notably, net income surged by 116% year-over-year, demonstrating remarkable growth. This was achieved through efficient management of selling, general, and administrative expenses (SG&A) and financial costs. The automotive segment maintained stable sales, while the battery segment, especially ampoule batteries, showed promising potential as a new growth driver. The debt-to-equity ratio stands at a stable 54%, and the total equity has also increased, strengthening financial stability.
The Significance of the Increased Stake
The major shareholder’s increased stake can be interpreted as a positive signal, demonstrating management stability and confidence in the company’s future. This is likely to provide positive momentum for the stock price in the short term. In the medium to long term, it is expected to enhance management stability and positively influence the pursuit of new businesses. The successful establishment of the high-growth-potential ampoule battery business further brightens SM Veccell’s future.
Action Plan for Investors
- Positive Factors: Successful turnaround, growth potential of the battery business, increased stake by the major shareholder
- Factors to Consider: Increase in inventory and slowdown in turnover rate, pending lawsuits
Analyzing market conditions and additional company information is crucial before making investment decisions. This analysis does not constitute investment advice, and investment responsibility lies with the individual investor.
What are SM Veccell’s main businesses?
SM Veccell’s primary businesses are automotive parts and batteries. In the automotive segment, they are expanding global OEM exports, and in the battery segment, they are fostering ampoule batteries as a new growth driver, alongside primary batteries.
How was SM Veccell’s performance in the first half of 2025?
SM Veccell achieved a turnaround in the first half of 2025, with sales of KRW 81.497 billion and net income of KRW 1.951 billion. Notably, net income increased by 116% year-over-year.
What is the significance of SM High Plus Co., Ltd.’s stake increase?
This is interpreted as a positive signal, indicating management stability and confidence in the company’s future. It’s expected to provide positive short-term stock momentum and enhance long-term management stability and new business initiatives.
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