Companies That Changed Their Names in the First Half of the Year: 'Half Success'

55% of 79 Companies with Name Changes
Record Average Stock Price Increase of 6%
Below Overall Market Growth Rate

[Asia Economy Reporter Park Jihwan] More than half of the listed companies that changed their names in the domestic stock market during the first half of this year succeeded in increasing their stock prices. However, the rate of increase was found to be below the market return.

According to financial information company FnGuide on the 8th, a total of 79 companies changed their names and listed on the KOSPI and KOSDAQ in the first half of this year. Among them, 28 were KOSPI-listed companies and 51 were KOSDAQ-listed companies.

Comparing the closing prices before the name change and on the 7th, more companies saw their stock prices rise than fall. Forty-four companies (55.7%) experienced a price increase, while 25 companies (31.6%) saw a decline. Nine companies had their trading suspended around the listing date, resulting in no price changes.

The stock prices of companies that changed their names rose by an average of 6.02% compared to the trading day immediately before the name change. By market, KOSPI-listed companies rose 8.24%, and KOSDAQ-listed companies rose 4.77%. However, the stock prices of renamed companies did not reach the market returns. Since the beginning of the year, KOSPI and KOSDAQ rose 14.33% and 8.15%, respectively. In contrast, the stock prices of renamed companies lagged behind the market returns by 6.09 percentage points and 3.38 percentage points, respectively.

The company with the largest increase was Suseong Innovation, whose stock price jumped 133.49% after the name change on April 14. Suseong Innovation is a company primarily engaged in manufacturing machinery for logistics. The stock price surge was driven by improved performance following the activation of the logistics industry after the COVID-19 pandemic and its association with political theme stocks. Gamsung Corporation's stock price surged 86.62%. Other companies with high growth rates included SNT Heavy Industries (43.64%), SNT Energy (43.25%), Hwasung Corporation (41.61%), Nuriplex (38.06%), Kumho Construction (31.69%), Mom's Touch (30.94%), Korea & Company (30.74%), and Sewon ENC (30.30%).

On the other hand, Jaan Bio's stock price fell 62.23% after the name change. Other companies with significant declines included F&F Holdings (-58.50%), Jaan Cosmetic (-44.93%), HumanN (-42.31%), Ginae Pharmaceutical (-33.61%), SG Global (-22.79%), and Polaris Office (-20.75%). The sharp declines in Jaan Bio and Jaan Cosmetic were largely influenced by the investigation of CEO An Sichan, who leads both companies, on charges including violation of customs laws. F&F Holdings and F&F, which were split and re-listed, showed markedly different stock price trends. F&F showed a steady upward trend after re-listing, rising about 26% during this period. In contrast, F&F Holdings recorded the lower limit price for two consecutive days, showing a clear downward trend. The stock price plummeted as the fashion business, which accounted for most of the profits, was separated into F&F.