Hansung Enterprise's share price has staged a sharp comeback after delisting rumors swirled just 10 trading days ago. The Kospi-listed seafood processor hit the daily upper limit on both Thursday and Friday, sending its share price from the 4,000-won range to above 8,000 won and pushing its market cap past 50 billion won ($33.2 million). Institutional investors and other corporations led the rally.
According to Korea Exchange, Hansung Enterprise closed at 8,460 won on Friday. The stock reached its daily price ceiling of 29.95 percent in early trading.
Compared with the intraday low of 3,945 won recorded on June 26, the share price has surged more than 114.4 percent in just 10 trading days. Hitting the upper limit for two consecutive sessions, the company's market cap more than doubled from around 25.7 billion won to 52.5 billion won.
Founded in 1963, Hansung Enterprise is a seafood processing company best known for its imitation crab product "Kkaemi." News that the company had sponsored concerts for UN Korean War veterans for 25 consecutive years sparked a consumer support campaign, drawing buying interest into the stock as well.
Hansung Enterprise had been at risk of delisting after Korea Exchange introduced tightened listing requirements this month.
Effective July 1, companies listed on Kosdaq with a market cap below 20 billion won and those on Kospi below 30 billion won become subject to delisting review. Starting next year, those thresholds will rise to 30 billion won and 50 billion won, respectively.
The latest share price surge has, for now, pulled Hansung Enterprise back from the immediate threat of delisting.
However, retail investors did not drive the short-term price spike. From June 29, when the stock began its sustained climb, through Friday, the biggest net buyers of Hansung Enterprise shares were other corporations (225.27 million won) and institutional investors (100.42 million won).
Over the same period, retail investors (-118.24 million won) and foreign investors (-215.51 million won) were net sellers, a trend analysts attribute to profit-taking as the share price surged.
With the tightened market cap thresholds now in effect, the number of stocks posting sharp price gains of this kind has been growing across the market.
The next company drawing attention is Monami, a Kospi-listed manufacturer and retailer of writing instruments. The company previously gained recognition as a domestic alternative to Japanese stationery brands during a boycott of Japanese products.
Monami's share price, which stood around 1,200 won at the end of last month, surged 78.7 percent to 2,145 won on Friday. Over the same period, its market cap jumped from 22.6 billion won to around 40.5 billion won — a level that places it above the delisting review threshold.
As a market movement to prevent the two companies from being delisted gained momentum and their share prices responded, executives and employees at both Hansung Enterprise and Monami posted messages of gratitude on their respective websites.
Hansung Enterprise said it was "delighted and deeply grateful for the kind words, warm support and great affection shown to us online and on social media."
Monami said the support of its backers "was a great source of strength even in the difficult circumstances where delisting was a real possibility," adding, "We are grateful that you have shown that the more than 60 years Monami has walked have not been in vain."
jiyun@heraldcorp.com
