[Click eStock] Osstem Implant "Sell Volume VS Solid Performance"... Caution on Increased Volatility

[Asia Economy Reporter Lee Seon-ae] Trading of Osstem Implant will resume from the 28th. Samsung Securities did not provide an investment opinion or target price and cautioned that "high stock price volatility may occur immediately after trading resumes."

The day before, the KOSDAQ Corporate Evaluation Committee (KOSDAQ Committee) announced the decision to maintain Osstem Implant's listing and resume trading. This marks the resumption of trading after 115 days since it was suspended on January 3 due to the occurrence of a substantial review reason for listing eligibility related to embezzlement and breach of trust charges. Among the key judgment indicators of the KOSDAQ Committee?business continuity, financial stability, and management transparency?the most problematic was management transparency and internal accounting control system. At the shareholders' meeting held on March 31, improvements such as the appointment of inside and outside directors, appointment of outside directors as audit committee members, appointment of audit committee members, and approval of director remuneration limits were passed. Additionally, the announcement of management improvement plans, including detailed verification procedures for independent department daily cash reports and strengthened control activities based on the firm banking system, actively reflected the requirements of the exchange. This was judged considering these factors along with solid business performance.

Seogeunhee, a researcher at Samsung Securities, said, "Although the audit report submitted on March 21 included an adverse opinion on the internal accounting control system, leading to designation as an investment caution stock, there is no problem with the stock trading itself. Since the exchange's requirements have been actively reflected, if an appropriate opinion is issued in the 2022 year-end audit, the designation can be lifted." He added, "The opening price upon trading resumption will be determined at the highest price based on purchase volume within the range of 50% to 200% of the simultaneous quotation reference price." He continued, "Institutional selling pressure and expectations for the company's solid performance may conflict, causing high volatility, but after some of the volatility subsides, it is expected that an appropriate corporate value can be presented."

Meanwhile, Osstem Implant's performance is reaching an all-time high. Its operating profit for the first quarter of this year was provisionally estimated at 51.2 billion KRW, a 100.5% increase compared to the same period last year. Sales reached 234.1 billion KRW, up 36.5% year-on-year. Sales marked the highest first-quarter performance ever recorded. Operating profit also surpassed 50 billion KRW for the first time in a quarter. The day before, the company also announced a plan to repurchase treasury shares worth 30 billion KRW. Um Taegwan, CEO of Osstem Implant, stated on the 27th, "We have decided to repurchase treasury shares worth 30 billion KRW to protect shareholders and enhance shareholder value. We will continue to seek various shareholder-friendly policies beyond this treasury share repurchase to lead efforts to increase shareholder value."

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