Shinjin SM "Will Consider Market Conditions and Trading Volume Requirements"

[Asia Economy Reporter Hyungsoo Park] Shinjin SM announced on the 11th, in response to an inquiry disclosure related to the sharp rise in stock price after the market closed on the 8th, that it is "considering a bonus issue to expand the number of circulating shares," but "nothing has been confirmed yet."

Shinjin SM plans to notify whether a bonus issue will be made within one month or immediately upon confirmation through a re-response to the inquiry disclosure.

A Shinjin SM official stated, "The bonus issue was considered at the time of the inquiry disclosure to expand the number of circulating shares," and added, "It can only be done if conditions such as market situation and trading volume are met," expressing a fundamental position.

They clarified that the stock price did not surge because of the consideration of a bonus issue, but rather the stock price surged due to the possibility of a bonus issue becoming an issue, which led to internal review.

The official continued, "While a bonus issue can be expected to activate trading by expanding the number of circulating shares, it is not a matter that affects the company's intrinsic value," and urged caution in investment.

Along with continuous efforts to enhance shareholder value through policies such as steady cash dividends, efforts to improve performance to increase corporate value are also being pursued. Shinjin SM recorded sales of 17.076 billion KRW and operating profit of 1.929 billion KRW in the first quarter of this year. Compared to the same period last year, sales increased by 29.8% and operating profit increased by 457.5%.