1. What Happened?

Gomoku Delta Chemical (Japan), a major shareholder of Shinsung Delta Tech, sold off a portion of its stake between August 7 and August 25, 2025. This reduced Gomoku Delta Chemical’s stake from 7.32% to 6.18%.

2. Why the Divestment?

The official reason for the sale has not been disclosed. It could be profit-taking, a change in investment strategy, or other reasons. Understanding the motivation behind the sale and the potential for further divestment is crucial.

3. How Will This Impact the Stock Price?

  • Short-term Impact: The divestment could lead to negative investor sentiment, putting downward pressure on the stock price.
  • Long-term Impact: Given Shinsung Delta Tech’s solid fundamentals (stable growth in the home appliance sector, expansion into the North American market for secondary batteries/auto parts, and entry into the robotics industry), a recovery after a short-term decline is possible. However, continued large-scale selling could prolong negative sentiment.

4. What Should Investors Do?

  • Stay Calm: This event doesn’t directly damage the company’s fundamentals. Avoid overreacting to short-term market fluctuations and maintain an objective perspective.
  • Focus on Fundamentals: Continuously monitor the stable performance of the home appliance sector, growth momentum in the secondary battery/auto parts sector, progress in new businesses (robotics), and evaluate the intrinsic value of the company.
  • Monitor Further Sales: Keep an eye on whether Gomoku Delta Chemical continues to sell its stake and if any new investors are entering.