Shinjin SM "No Issues at All... Performance Improvement in Progress"

[Asia Economy Reporter Hyungsoo Park] Shinjin SM stated on the 7th that "there is absolutely no problem with the company and the performance is improving" regarding the reason for the sharp drop in stock price the previous day.

The previous day, Shinjin SM's stock price closed at 8,450 won, down 19.52%. The trading volume reached 1.93 million shares, which is 10 times the usual volume.

Many shareholders curious about the reason for the sharp decline called the company, saying, "I invested knowing it was a sound company, but suddenly the price dropped sharply, so I wonder if there is a problem with the company." The company said that the continuous phone inquiries almost paralyzed the responsible department.

A company official said, "There is no management issue, so we do not know the reason for the sharp drop," but explained, "Some in the market speculate that investors who expected it as a presidential election theme stock may have withdrawn."

Shinjin SM's performance outlook for this year is bright. As the manufacturing industry, which was stagnant due to COVID-19, recovers, corporate facility investment is increasing. It is expected that the profit increase due to the favorable conditions in the upstream industry will be significant.

Shinjin SM recorded sales of 16.7 billion won in the second quarter, achieving the highest quarterly figure ever. Operating profit was 1.4 billion won. The third quarter of this year is expected to surpass the second quarter's performance. By selling a factory worth 8 billion won, a disposal gain of about 2 billion won is also expected. The asset sale for factory consolidation is progressing smoothly.

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