[Weekly HOT Stocks] Myungshin Industry Enters KOSPI... Individual Investors 'Focus'

Initial Public Offering Day Records 'Ttasant'... Subsequent Stock Price Shows Rise and Fall

[Asia Economy Reporter Kum Boryeong] Myeongshin Industry, which entered the KOSPI market on the 7th, attracted significant attention from individual investors throughout the week.

According to the Korea Exchange on the 13th, individual investors purchased Myeongshin Industry stocks worth 89.3 billion KRW from the 7th to the 11th. It ranked 9th among the top stocks by net purchases of individual investors.

Myeongshin Industry was listed on the KOSPI on the 7th. On the day of listing, it achieved a so-called 'ttasang' by recording 16,900 KRW, a 30% (3,900 KRW) increase from the opening price of 13,000 KRW. The public offering price of Myeongshin Industry was 6,500 KRW. 'Ttasang' means that the opening price is set at twice the public offering price, followed by hitting the upper price limit.

The stock price showed fluctuations after listing. The closing price was 20,300 KRW on the 8th, 18,350 KRW on the 9th, 17,700 KRW on the 10th, and 18,050 KRW on the 11th.

Myeongshin Industry attracted market attention even before listing. In the public offering subscription for general investors, the final competition rate was recorded at 1,372.94 to 1, setting a new KOSPI record. This surpassed the previous record of 1,318 to 1 set by Kyochon F&B. The competition rate in the demand forecast for institutional investors also reached 1,195.69 to 1.

Myeongshin Industry is an automotive parts company specializing in hot stamping technology with 38 years of experience. Hot stamping is a technology that uses electric control technology to simultaneously form and harden parts in a mold after high-temperature heating, producing ultra-lightweight and ultra-high-strength parts. This technology is increasingly adopted to enhance the efficiency of eco-friendly and electric vehicles.

Researcher Park Jongseon of Eugene Investment & Securities said, "There are two investment points: first, stable growth is expected alongside the trend of vehicle lightweighting," adding, "With the global and domestic hot stamping markets growing at 6.8% and 7.4% respectively, Myeongshin Industry is expected to maintain stable growth based on its hot stamping technology." Since 2014, Myeongshin Industry has been supplying to Hyundai-Kia Motors and has maintained stable supply.

Researcher Park also added, "Continuous performance growth is expected with the acquisition of global electric vehicle clients. Sales to global electric vehicle clients, which started in 2017, have been steadily increasing," and "As sales to global electric vehicle clients increase and their proportion of total sales rises, profitability is estimated to be better than that of domestic clients, leading to performance growth and profitability improvement in the mid to long term."

This content was produced with the assistance of AI translation services.