[Featured Stock] Polaris Uno Hits Upper Limit Following Announcement of Free Capital Increase

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Polaris Uno is recording an intraday limit-up following the announcement of a free capital increase on the 17th.

The company is trading at 5,830 KRW on the KOSDAQ market as of 11:24 AM, up 29.84% compared to the previous day.

It is analyzed that the sharp growth in performance due to the recovery of daily life from COVID-19, along with the shareholder return policy through the free capital increase, has driven the stock price up.

Polaris Uno, a wig yarn manufacturer, announced a 300% free capital increase, issuing 3 new shares for every 1 common share, on the morning of the same day.

The company's consolidated operating profit for Q2 increased by 6% year-on-year to 1.9 billion KRW. During the same period, sales and net profit recorded 24.9 billion KRW and 4 billion KRW, respectively, representing increases of 77.9% and 375.4% compared to the previous year. Sales have increased for four consecutive quarters.

Meanwhile, Polaris Sewon, the largest shareholder of Polaris Uno, also showed a sharp rise on the same day. As of 3 PM, the stock is trading at 2,625 KRW, up 8.92% from the previous day. This is interpreted as a result of achieving the highest performance in the first half of the year, supported by the growth of the electric vehicle market.

Polaris Sewon supplies electric vehicle parts to Hyundai Kia Motors, Tesla, Rivian, Lucid Motors, Ford, and GM.

In Q2 of this year, Polaris Sewon recorded consolidated sales of 48.4 billion KRW and operating profit of 3.9 billion KRW, increasing by 229% and 589% year-on-year, respectively. The consolidated net profit for the same period turned positive to 5.5 billion KRW compared to the previous year.