Caregen CEO Jeong Yong-ji recently purchased additional stocks
“I bought stocks, but never sold them.”
Even when the stock market was sluggish last year, there is a KOSDAQ-listed company whose stock price soared 100% and rose an additional 50% this year. It is Caregen, a peptide raw material product developer. Caregen is attracting attention as its largest shareholder recently purchased additional shares. CEO Jeong Yong-ji, the largest shareholder, buys stocks whenever the stock price rises, even though he owns more than 60% of the shares. It is a part compared to other companies that usually realize profits by reorganizing their shares when the company’s stock price rises.
According to the Financial Supervisory Service on the 19th, Caregen CEO Jung Yong-ji bought 5031 shares of Caregen over two days on the 7th and 8th. On the 7th, 4,016 shares were purchased at 199,334 won, and on the 8th, an additional 1,015 shares were purchased at 196,214 won. That’s about 10 billion won. As a result, CEO Chung’s stake increased from 63.55% to 63.59%.
Compared to the number of shares owned by CEO Jung, the number of shares purchased is insignificant, but the timing of his purchase is attracting attention. This is because Caregen stock has risen 50% this year. According to the Korea Exchange, from January 2nd to the previous day, Caregen’s share price rose 48%. During that period, the KOSDAQ index rose 29%.
Even when the KOSDAQ index plunged 34% last year, Caregen’s share price rose 106%. The stock price, which was around 66,000 won at the beginning of last year, rose to more than 130,000 won at the end of last year, and is now over 200,000 won.
Usually, the purchase of shares by the largest shareholder takes place when the share price declines. When the stock price rises, the largest shareholder often liquidates some of its stake, but Caregen attracted attention in that it expanded its stake in a situation where the stock price was on the rise.
Shareholders are pleased with this move of CEO Jung. One shareholder said, “I thought that if the stock price went up because the largest shareholder’s stake was high, I would have to worry about the sale of the major shareholder or a special relationship, but CEO Jeong bought the stock and is trustworthy.” Another shareholder said, “It seems that the CEO of the company shows his will to boost the stock price by continuously buying stocks, which is helpful for shareholders’ mental care . ” he emphasized.
Currently, CEO Jeong owns 6,832,089 shares, or 63.59% of the company’s shares. Including the shares of four specially related parties, the total is 6,882,339 shares. There are a total of four people with special relations, including two children and two company executives. The stocks owned by the children are all 10,254 stocks donated by CEO Jung in 2018. In addition, Kim Eun-mi and Huh Seong-wook먹튀검증, who are related to the company, hold 39,910 shares and 146 shares, respectively.
CEO Jeong also bought stocks in the market in 2018. On October 29, 2018, 4053 shares were purchased, and on November 14 and December 17, 2000 and 2739 additional shares were purchased, respectively. It was also a time when stock prices were rising.
An official from Caregen said, “The CEO used to say, ‘I want to buy more stocks’ from before.”
Since its establishment in 2001, Caregen has been developing peptide raw materials through research and development focusing on peptides, which are protein growth factors and amino acid compounds. Based on peptides, it develops and produces medical devices, functional cosmetics, and raw materials for facial beauty, hair loss and scalp management, and obesity management. It entered the KOSDAQ market on November 17, 2015.
Ha Tae-gi, a researcher at Sangsang Certification, said, “We pay attention to the high margins of Caregen’s peptide-based products.” He said, “The operating margin as of last year was 48.3%, which is higher than that of traditional esthetic products.” predicted that
Meanwhile, Caregen announced on June 15 that it decided to split the face value of its shares from 500 won to 100 won to increase the number of shares in circulation. Caregen plans to increase the total number of issued shares from 10,743,000 to 53,715,000 through a 5-to-1 stock split. The scheduled date for the listing of new shares is the 25th.