[Featured Stock] Ostem Implant Trading Resumes After 115 Days, Extreme Volatility "Sharp Fluctuations From Market Open"

[Asia Economy Reporter Lee Seon-ae] On the 28th, the stock price of Osstem Implant, which resumed trading after 115 days, is showing extreme volatility. After starting with a downward trend, it switched back to an upward trend and surged sharply, then the gains were given back, showing severe fluctuations.

On this day, Osstem Implant's opening price was set at 121,000 KRW. "The opening price upon resumption of trading is determined at the highest price based on the buy volume within the range of 50% to 200% of the simultaneous quotation reference price. Trading was suspended on January 3 due to an embezzlement scandal involving 221.5 billion KRW exceeding the company's equity, and trading resumed after about four months. During this period, the stock price remained at 142,700 KRW (closing price on December 30).

In the early session, the price dropped sharply to 116,500 KRW, then reversed to an upward trend and surged to 131,900 KRW. As of 9:16 AM, the stock is trading at 126,800 KRW, up 4.79%.

The day before, the KOSDAQ Corporate Evaluation Committee (Gisimwi) announced the decision to maintain Osstem Implant's listing and resume trading. This is the resumption of trading after 115 days since the suspension on January 3 due to the occurrence of a substantial review reason for listing eligibility related to embezzlement and breach of trust charges. Regarding management transparency and internal accounting control systems, which were the most problematic among the main judgment indicators of Gisimwi such as business continuity and financial safety, improvements were passed at the shareholders' meeting held on March 31, including 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. Furthermore, the announcement of management improvement plans such as detailed verification procedures for independent department daily cash reports and strengthened control activities based on the firm banking system, actively reflecting the exchange's requirements, and considering solid business performance, were judged as positive results.

Seogeunhee, a researcher at Samsung Securities, said, "Although the internal accounting control system review opinion in the audit report submitted on March 21 was 'inappropriate,' leading to designation as an investment caution item, there is no problem with the trading of the stock itself, and since the exchange's requirements have been actively reflected, it is possible to lift the designation if an appropriate opinion is issued in the 2022 year-end audit." He added, "The opening price upon resumption of trading will be determined at the highest price based on buy volume within the range of 50% to 200% of the simultaneous quotation reference price." He continued, "There may be high volatility as institutional selling pressure and expectations for the company's solid performance conflict, but after some volatility is resolved, 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 is tentatively estimated at 51.2 billion KRW, up 100.5% compared to the same period last year. Sales increased by 36.5% year-on-year to 234.1 billion KRW. Sales are the highest ever recorded for a first quarter. 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, said on the 27th, "We decided to repurchase treasury shares worth 30 billion KRW to protect shareholders and enhance shareholder value," adding, "We will continue to seek various shareholder-friendly policies beyond this treasury share repurchase to lead the enhancement of shareholder value." The company plans to disclose quarterly the implementation status of measures to prevent recurrence of embezzlement through strengthening management transparency and improving internal controls.

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