[Special Stock] 'Selling Bomb' Ostem Implant Plunges for Second Day After Trading Resumes

[Asia Economy Reporter Lee Seon-ae] On the second day after the resumption of stock trading on the 29th, Osstem Implant continued its sharp decline.

On this day, Osstem Implant's stock price, which started at 109,900 KRW, was recorded at 107,000 KRW as of 9:08 AM, down 4.46%.

It closed at 112,000 KRW, down 7.44% compared to the previous day's opening price (121,000 KRW). Compared to 142,700 KRW before the trading suspension, it fell by 21.5%. Although it rose to as high as 131,900 KRW during the session, it slipped due to concentrated selling by foreign investors. Foreigners and institutions led the price decline with net sales of 64.1 billion KRW and 9.9 billion KRW respectively, while individual investors were net buyers of 72.8 billion KRW.

The large-scale selling by foreigners and institutions is interpreted as a result of Osstem Implant being designated as an 'Investment Warning Stock,' leading to its exclusion from the KOSDAQ150 and KRX300 indices. It is analyzed that mechanical selling occurred from passive funds tracking these two indices.

On this day, Hana Financial Investment evaluated Osstem Implant as having "increased valuation (price-to-earnings ratio) attractiveness due to the sharp stock price drop on the first day of trading resumption." However, they did not provide an investment opinion or target price.

Researcher Kim Doo-hyun of Hana Financial Investment explained, "Osstem Implant recorded a 95.8 billion KRW impairment loss on embezzled receivables as a non-operating expense in Q4 last year, so the impact of increased bad debt expenses this year will be limited. The 195.9 billion KRW in cash and cash equivalents will be used as operating funds and resources for future mergers and acquisitions (M&A), and the announcement of a 30 billion KRW share buyback laid the foundation for enhancing shareholder value."

He added, "Due to the price drop on the first day of trading resumption, Osstem Implant's 2022 forecast price-to-earnings ratio (PER) has fallen to around 12 times, giving it increased valuation attractiveness as the leading domestic implant company." He further explained, "This year, external growth will continue through expanding market share in the value segment (mid-priced products), increasing penetration of quasi-premium products in overseas markets, and expanding overseas subsidiaries for direct sales methods. Attention should be paid to Osstem Implant's mid- to long-term growth strategy."

Meanwhile, Osstem Implant's trading was suspended on January 3rd due to a 220 billion KRW embezzlement case, and trading resumed the day before after 115 days.

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