Shinsegae E&C stock soars on capital increase

[Photo by Yonhap]

Shinsegae Engineering & Construction Co. (Shinsegae E&C) saw its shares soar sharply on Wednesday morning following reports that it has secured 650 billion won ($476 million) in capital.

Shares of Shinsegae E&C were trading at 15,430 won as of 10:35 a.m., up 25.35 percent from the previous session.

On Tuesday, Shinsegae E&C announced that its board of directors approved the issuance of 650 billion won worth of hybrid securities to improve its financial structure and preemptively secure liquidity.

Shinsegae E&C‘s debt ratio stood at 807 percent as of the end of the first quarter. The capital increase is expected to reduce the ratio to below 200 percent.

SKC Ltd. stock, in the meantime, continued its bullish trend on Wednesday, following an analysis indicating that the subsidies it will receive from the U.S. government are at the highest level.

Shares of SKC were trading at 151,100 won as of 10:35 a.m., up 8.16 percent from the previous session. The stock hit a 52-week high of 153,000 won shortly after the market opened.

According to an analysis released on Wednesday, IBK Securities Co. raised its target price for SKC to 160,000 won from 136,000 won on the prospect of its U.S. subsidiary Absolics Inc. receiving industry-leading subsidies from the U.S. government.

Other positive factors affecting SKC shares are structural improvements and new business acquisitions.

SKC’s annual operating loss is expected to decrease to 132 billion won this year from 216 billion won last year. The company is projected to swing to a profit next year.

SK hynix Inc. is also on the bullish trend, with its shares nearing 210,000 won on the back of a sharp rise in Nvidia Corp. stock in the United States.

SK hynix is a supplier of high-bandwidth memory (HBM) to Nvidia.

SK hynix stock was trading at 202,500 won on Wednesday morning.