TLB Rights Offering: 120B Won for Vietnam Plant Expansion & Debt Improvement
This rights offering plans to issue 2,073,000 shares (estimated price 57,900 won) via a rights offering with a subsequent public offering, raising approximately 120 billion won.
All proceeds will be used for the construction of a second plant for TLB VINA in Vietnam and the setup of core PCB production lines (CNC, plating, circuit formation, etc.).
A 100% stock dividend (1 share per share) is planned after the rights offering (record date July 20, 2026, listing expected August 7, 2026).
FY2025 consolidated revenue: 258.5 billion won (+43.6% YoY), operating profit: 26.0 billion won (+673.2%), net income: 19.0 billion won (+426.8%). Q1 2026 revenue: 75.8 billion won (+43.1% YoY), operating profit: 10.7 billion won (operating margin 14.1%).
Debt ratio increased from 95.4% in FY2025 to 97.2% in Q1 2026. After the rights offering, the debt ratio is expected to improve to 51.2%.
Total borrowings: 86.7 billion won in FY2025 → 92.5 billion won in Q1 2026. Current portion of borrowings accounts for 82.9%, indicating high short-term debt concentration.
Interest coverage ratio improved to 10.2x in FY2025 and 14.6x in Q1 2026, though still low compared to historical levels.
CAPEX was 36.9 billion won in FY2025 (106.5% of EBITDA) and 12.5 billion won in Q1 2026 (95.8% of EBITDA).
Operating cash flow was negative 2.8 billion won in Q1 2026 despite net income of 8.5 billion won, due to working capital burden.
Customer concentration: top 2 customers (SK Hynix, Samsung) accounted for 82.51% of sales in FY2025 and 81.03% in Q1 2026.
Raw material price risk: PGC unit price rose from 109,445 won/g in FY2025 to 156,418 won/g in Q1 2026 (+43%), with CCL prices also rising.
FX risk: a 10% depreciation of the won against the dollar would result in an estimated pre-tax loss of 2.63 billion won. Export share was 91.1% in Q1 2026.
CEO Baek Seong-hyun, the largest shareholder, plans to participate in only 25% of his allotted shares (101,490 shares) in the rights offering and intends to sell 75,000 existing shares.
Subsidiary risk: TLB VINA posted a net loss of 4.9 billion won in FY2025 but turned profitable with 145 million won in Q1 2026. NLT Co., Ltd. is deeply capital-impaired.
Inventory increased from 45.3 billion won in FY2025 to 53.4 billion won in Q1 2026, with inventory turnover falling from 7.5x to 6.2x (annualized).
Collateral on tangible assets: as of Q1 2026, collateral amounted to 96.9 billion won, representing 68.5% of the carrying value of tangible assets.
KOSDAQ Filing Information
Filing: [Correction of Description] Securities Registration Statement (Equity Securities)