Trading Resumed for Osstem Implant... Retail Investors Net Buy 100 Billion Won

Earnings Surprise and Stock Price Reversal Expected

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] "Have all the foreigners left? Is it okay to buy now?"

Individual investors are flocking to Ostem Implant, which resumed trading after more than four months. Expecting a stock price turnaround due to solid earnings and the company's management improvement plan, individuals have purchased over 100 billion KRW worth of shares, while those aiming for additional entry are engaged in a fierce battle of wits with foreign investors.

According to the Korea Exchange on the 2nd, individual investors net bought Ostem Implant shares worth 109.197 billion KRW over two days, on the 28th and 29th of last month. Trading in Ostem Implant resumed after 115 days on the 28th of last month, and during this period, individuals bought the second-largest amount of shares after LG Innotek (111.6 billion KRW). On the 29th, institutional investors also joined in. Over the two days, institutions purchased shares worth 17.5 billion KRW, marking the second-largest net buying volume in the KOSDAQ market.

On the other hand, foreign investors continued their sell-off. Foreign investors net sold shares worth 129.5 billion KRW over the two days, making them the second-largest sellers after Samsung Electronics. Their holding ratio also sharply declined from 43.7% before trading resumed to 35.48%. This was due to issues such as exclusion from the KOSDAQ150 index and designation as an investment caution stock following an adverse internal accounting control opinion, which alienated foreign investors. Currently, the stock price has dropped about 19%, from 142,700 KRW before trading resumed to 114,200 KRW as of 1:50 PM on the day.

While individuals were busy buying, foreigners were busy selling. The individuals' investment decision is backed by solid earnings. Despite the traditional off-season in the first quarter, Ostem Implant achieved record quarterly profits with sales of 234.1 billion KRW and operating profit of 51.1 billion KRW. Exports to Russia remained strong despite the war between Russia and Ukraine, and sales related to the establishment of a corporation for European expansion increased by about 50%. Expectations for second-quarter earnings are also rising, and export data from April shows continued robust growth. According to provisional export data for implant medical devices in April, total exports reached 55.9 million USD, a 44% increase compared to the same period last year.

Researcher Doohyun Kim of Hana Financial Investment said, "Sales growth of premium products centered on the US and Chinese markets is expected to continue," adding, "The recent announcement of a 30 billion KRW share buyback laid the foundation for enhancing shareholder value."

However, it is uncertain whether individual investments will translate into significant short-term profits. Due to the early surge in buying on the first day of resumed trading, pushing the stock price up to 130,000 KRW, the average purchase price of individuals who bought early is even higher than that of institutions. The average purchase price for individuals is 116,983 KRW, while for institutions it is 114,248 KRW. Concerns about short-term volatility remain. Researcher Chunghyun Kim of Mirae Asset Securities explained, "Although the financial risk from embezzlement does not appear significant, stock price volatility may increase due to supply and demand issues for the time being, so caution is advised when investing."

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