[Alpha Biz=(Chicago) Reporter Paul Lee] The stock price fell about 40 percent, breaking new low prices every day, two months after KG Mobility (formerly Ssangyong Motor) resumed trading after a two-year and four-month suspension.

According to securities firms on the 26th, KG Mobility closed at 8,180 won on the same day, down 40.81% from the closing price of 13,820 won on April 28, the first day of trading resumption.

During the day, it fell to 7,910 won, breaking the 52-week low price. It has been a new low for eight consecutive trading days since the 15th.

KG Mobility is a former Ssangyong Motor, which was acquired by Mahindra in 2010 and was resold in 2021. Last year, KG Group was welcomed as a new owner and started a new start under the name of KG Mobility.

In the stock market, trading was suspended on Dec. 21, 2020 due to rejection of audit opinions and corporate rehabilitation procedures for the second consecutive year, but trading resumed on April 28. It was in two years and four months, 858 days.

The first-quarter results, which were announced shortly after the resumption of trading, were also good. KG Mobility said it recorded sales of 1.85 trillion won, operating profit of 9.4 billion won and net profit of 16.5 billion won in the first quarter, respectively. Sales were the largest ever, and it was the first time in 25 quarters since the fourth quarter of 2016 that operating profit and net profit were in the black at the same time. Stock prices have fallen more than 40% amid the pace of normalization of management.

Stock markets are taking issue with the valuation of KG mobility, which is still higher than Hyundai Motor and Kia. In the second half of 2020, before the suspension of trading, there was a rumor that HAAH Automotive Holdings, a U.S. auto distributor, would take over, and the stock price was overvalued by M&A expectations.

 

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