[Market Focus] LK Samyang Surges on Ex-Rights Adjustment for Paid-In Capital Increase

As of 9:35 a.m. on September 30, shares of LK Samyang on the KOSDAQ market were trading at 1,989 won, up 17.41% from the previous closing price. This appears to be due to the ex-rights adjustment following a shareholder-allotted paid-in capital increase.

During the paid-in capital increase process, when rights to the new shares are removed, the stock price is artificially lowered in proportion to the capital increase ratio. This often creates the illusion that the stock is cheaper, leading to increased buying activity.

At the end of August, LK Samyang announced it would raise 24 billion won through a shareholder-allotted paid-in capital increase involving 19.72 million new shares. On September 29, the company disclosed that the initial issue price had been set at 1,216 won.

LK Samyang's revenue has continued to decline, recording 54.9 billion won in 2022, 39 billion won in 2023, and 32 billion won in 2024. For the first half of this year, cumulative revenue was 11.6 billion won, down 32.3% compared to the same period last year. Recently, the camera lens market has shifted from manual focus (MF) lenses, favored by professionals, to autofocus (AF) lenses. As sales of LK Samyang's main product, MF lenses, have decreased, the company's overall revenue has also been falling.

LK Samyang is pursuing business diversification based on its precision lens processing technology. In June, the company successfully launched a next-generation artificial intelligence (AI) star tracker for deep space navigation, co-developed with Telepix, aboard SpaceX's Falcon 9 rocket as part of the Transporter-14 rideshare mission. The device has entered orbit and is undergoing phased testing. LK Samyang is also expanding its lineup of high-resolution aerial photography lenses and industrial machine vision lenses.