"AI Thank You"... Hanamicron, CB Investors Hit the Jackpot

12th CB Issued at 10,632 KRW
Closing Price on 15th: 27,700 KRW
Listing on 29th... Yield 160%

Investors of Hana Micron's 12th convertible bonds (CB) are expected to record a return of over 160%. This is because the stock price has risen more than twice compared to the CB conversion price due to expectations of benefits from artificial intelligence (AI).

According to the Financial Supervisory Service's electronic disclosure system on the 18th, Hana Micron announced on the 15th that it had exercised the conversion rights of the 12th CB. The conversion price per share is 10,632 KRW, and 4,062,321 shares will be issued. This corresponds to 8.45% of the total issued shares of 48,074,154. The remaining balance after conversion is 4,893.9 million KRW.

If the stock price is maintained until the 29th of this month, investors are expected to gain substantial profits. The total amount of the 12th CB being converted this time is 43,190.61 million KRW. Calculated at the closing price on the 15th of this month, it amounts to 112,526.29 million KRW. This corresponds to a return of 160.53%.

Hana Micron's 12th CB was issued in March 13 last year with a scale of 48 billion KRW. The nominal and maturity interest rates are 0.0% and 2.5%, respectively. The conversion request period for the CB is from the 15th to February 15, 2053.

The issuance target is Kyobo OSAT New Technology Business Investment Association. Kyobo OSAT New Technology Business Investment Association holds a 14% stake through Kyobo Securities. Of the 12th CB, 16.98%, amounting to 8,150.61 million KRW, was sold last month to Chairman Choi Chang-ho, the largest shareholder of Hana Micron, and his spouse, Oh Moon-sook, who are special related parties. They took 7,699.38 million KRW and 451.23 million KRW worth, respectively.

Hana Micron decided to use 20 billion KRW of the 48 billion KRW from the 12th CB for operating funds such as purchasing major raw materials and labor costs. The remaining 28 billion KRW will be used to support funds required for facility investment of its subsidiary, Hana Micron VINA Co., Ltd.

At the time of the CB issuance, Hana Micron's stock price was only 10,370 KRW. However, as AI emerged in the market, Hana Micron's stock price rose. It was highlighted that the company supplies packaging services necessary for producing high-bandwidth memory (HBM) to SK Hynix. HBM is considered an essential component of AI semiconductors. As a result, in November last year, Hana Micron's stock price rose intraday to as high as 34,500 KRW. Although it has recently undergone some correction, it still maintains a stock price more than twice the CB conversion price.