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.
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KOSDAQ Filing Information
- Filing: [Correction of Description] Securities Registration Statement (Equity Securities)
- Company: TLB (356860)
- Submission: TLB Co., Ltd.
- Receipt: 05-12-2026