HMM to Return 2.5 Trillion KRW to Shareholders This Year... 9% Annual Revenue Growth Target Until 2030

HMM will expand shareholder returns in line with its '2030 Mid-to-Long-Term Strategy.' This year, it plans to return more than KRW 2.5 trillion. The company has set a target of an average annual sales growth rate of 9% and a three-year average return on equity (ROE) of 4%.

16,000 TEU-class container ship HMM Nuriho. Photo by HMM

On the 22nd, HMM announced plans to enhance corporate value and increase shareholder value accordingly.

First, it will build business capabilities at the level of global shipping companies. By 2030, it will invest KRW 23.5 trillion to expand its container capacity to 1.55 million TEU (130 vessels) and bulk capacity to 12.56 million DWT (110 vessels). Through this, it aims to maintain stable earnings with an average annual sales growth rate of 9% and a three-year average ROE of 4%.

Regarding shareholder returns, HMM plans to increase the payout ratio to 30% and the dividend yield to at least the smaller of 5% by 2030. The criteria were set considering the shipping industry's characteristics, which involve significant performance fluctuations depending on market conditions, HMM explained. However, this year, in addition to the mid-to-long-term policy, it will return more than KRW 2.5 trillion to shareholders in total for the year (including dividends for the 2024 fiscal year). Shareholder returns include share buybacks and cancellations.

The achievement rate of key governance indicators will be raised to 65% by 2030. This indicator, recommended by the Korea Exchange to enhance corporate governance transparency, stood at 47% in 2023 (market average 49.5%). HMM plans to significantly improve multiple items, including providing predictability related to cash dividends.

Additionally, to achieve the '2045 Net Zero (carbon neutrality)' goal ahead of schedule, HMM will invest KRW 14.4 trillion by 2030. It will also expand communication with shareholders and stakeholders to enhance market credibility.

An HMM official stated, "We will continuously pursue measures to enhance corporate competitiveness, such as fleet expansion and portfolio diversification," adding, "We will also increase shareholder value through various strategies and institutional improvements, including shareholder returns and governance enhancements."