TS Trillion, known for its TS Shampoo brand, has faced turmoil over the past two to three years. A management dispute between the founder and executives lasted for two years. Although a new major shareholder (DS Union) emerged in September of last year, the major shareholder changed again to EJ & P just two months later. Amid this chaos, the company's stock price has sharply declined. After falling from the 3,000 won range earlier this year, the company executed a stock consolidation, but it had little effect. This month, the stock price has fluctuated between 600 and 700 won, putting it at risk of being delisted as a 'penny stock.' On July 14, the stock price dropped by over 8%, bringing the market capitalization below the KOSDAQ listing requirement of 20 billion won.
According to the Korea Exchange, TS Trillion's stock price has remained below 1,000 won for 16 consecutive trading days from June 22 to July 14. The closing price on July 14 was 671 won. The stock consolidation, which took place at the end of March with a 5-for-1 ratio, did not have a lasting impact. Considering that the stock price was 1,557 won on the resumption of trading on May 7, it has halved in just two months. The market capitalization also falls below the delisting threshold, with an estimated value of about 19.6 billion won based on the closing price.
The ongoing poor stock performance has dampened investor sentiment. The average daily trading volume this month was 13,502 shares, a 92.6% decrease from last month's average of 1,820,623 shares. Similarly, the average daily trading value plummeted from 2.173 billion won to approximately 99 million won, a 95.5% drop.
The company's operational conditions are not particularly favorable either. While the first-quarter results show improvement compared to the same period last year, financial burdens remain. As of the first quarter of this year, the total liabilities stood at 33.73 billion won, a 25.9% increase from the end of last year. Current borrowings were maintained at a similar level to the previous year at 16.21 billion won, but the issuance of 3.07 billion won in convertible bonds has led to an increase in non-current liabilities.
Concerns about stock value dilution persist. In May, TS Trillion issued 1 billion won in its fourth convertible bond to secure operating funds. The total amount of outstanding convertible bonds, including this issuance, is 5.9 billion won. The number of shares that can be converted is approximately 4.64 million, accounting for 15.93% of the total issued shares. This raises concerns about potential dilution of share value when conversion rights are exercised in the future.
Investor anxiety is growing. Voices in investor communities are expressing concerns about the possibility of trading suspension and delisting. Some shareholders have pointed out that “objective results confirming whether the financial structure has actually improved should be available alongside the second-quarter results to support the stock price.”
* This article has been translated by AI.
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