PSTech Cancels 290,000 Treasury Shares... "Exploring Various Shareholder Return Policies"

[Asia Economy Reporter Jang Hyowon] PSTECH, a specialized company in measuring and metering instruments (CEO Hwang Jaeyong), announced on the 21st through a disclosure that it has decided to cancel treasury shares to enhance shareholder value.

The number of shares to be canceled by PSTECH this time is 298,570 shares, which corresponds to about 1.52% of the total shares. The scheduled cancellation date is the 28th, and once the treasury share cancellation is completed, PSTECH's total issued shares will change from 19,669,243 shares to 19,370,673 shares.

PSTECH stated that following the decision to pay the largest-ever cash dividend since its founding on the 15th, it is implementing various shareholder return policies, including the recent decision to cancel treasury shares. Generally, when a company cancels treasury shares, the number of issued shares decreases, resulting in an increase in earnings per share (EPS), which is regarded as a strong shareholder return policy.

A company official said, “We have been exploring various shareholder return policies, including continuous dividends for 23 consecutive years including this year,” and added, “Despite the recent unstable economic situation, we decided to cancel treasury shares following the expansion of dividend size to enhance shareholder value.”

He continued, “In addition to operating existing businesses stably, we plan to promote company growth through business diversification such as electric vehicle chargers and renewable energy, and we will continuously devise shareholder return policies including additional treasury share cancellations in the future.”

PSTECH is expanding its business areas into electric vehicle chargers and renewable energy based on its core business of measuring and metering instruments. In particular, regarding the renewable energy business, the company explained that in January last year, it signed a business agreement for the construction of a hydrogen fuel power plant with Gangwon Province, Pyeongchang County, and the Korea Institute of Climate Change, and that the business has entered a growth phase with an expansion of solar power-related orders last year.