[Click eStock] "Patron, Enhancing Corporate Value Beyond Expectations"

Daishin Securities analyzed on the 10th that Partron's corporate value enhancement plan includes content that exceeds expectations. The investment opinion 'Buy' and the target price of 11,000 KRW were maintained.

Partron announced its corporate value enhancement plan the day before. Specifically, it includes ▲ KRW 2.2 trillion in sales by 2028 ▲ treasury stock cancellation ▲ cash dividends at about 3% of market price.

Park Kang-ho, a researcher at Daishin Securities, said, "The sales target for 2028 is KRW 2.2 trillion, aiming for an average annual growth rate of 13% compared to 2023," adding, "Considering that smartphones have entered a mature phase and the limitations of Samsung Electronics' market share expansion, focusing on new growth in automotive electronics and sensors (including semiconductor packaging) is positively evaluated."

He explained, "With the current treasury stock holding of 14.3% and additional purchases, the company aims to cancel more than 3% of treasury stock annually from 2024 to 2028, targeting a total number of issued shares below 50 million," adding, "The first treasury stock cancellation is scheduled for this month, and considering the recent stock price decline, additional treasury stock purchases are also expected."

He said, "A 15% treasury stock cancellation over five years is positive for enhancing corporate value," and added, "Considering the additional operating profit generation from the KRW 2.2 trillion sales target in 2028, dividends are also expected to gradually increase." He further noted, "Reflecting the current undervaluation phase and shareholder return policy, the valuation attractiveness is expected to increase."