21 Value-Up Disclosures This Year: "Dividends Mentioned Most Often"

18 Out of 21 Companies Announce Dividend-Related Plans
Stock Price Trends Differ Among Value-Up Disclosure Companies
"Actual Implementation Is Key"

It was revealed that 21 companies have disclosed corporate value enhancement (value-up) plans this year. Most of them are KOSPI companies, with dividend policies being the most common content.

According to the Korea Exchange on the 14th, from January this year until the day before, 21 companies including Com2uS, DB Insurance, Samsung Fire & Marine Insurance, and Emart disclosed corporate value enhancement-related announcements. Among them, 15 were KOSPI companies and 6 were KOSDAQ companies.

The most common content among companies that made value-up disclosures was related to dividends. Eighteen listed companies such as Daishin Securities, Hyundai Motor Securities, and HMM announced plans to pay dividends or increase their dividend payout ratios.

Daishin Securities plans to expand its dividend from 99.3 billion KRW in 2024 to 160 billion KRW by 2030. Through this, the target minimum dividend per share is 1,200 KRW, and the target dividend payout ratio is 30-40% on a separate basis. Additionally, HMM decided to expand shareholder returns by maintaining a dividend payout ratio of 30% and a market dividend yield of 5%, whichever is lower, until 2030.

Along with this, there were many announcements related to treasury stock. Eleven companies including Hanmi Pharm, KX, and Taewoong Logistics plan to acquire or retire treasury shares. Taewoong Logistics plans to retire a total of 1 million treasury shares over three years, which corresponds to 2.6% of the currently listed shares. Emart also plans to retire 280,000 shares annually from this year through next year. JB Financial Group plans to increase the proportion of treasury stock repurchases and retirements by 2026.

In the case of KOSDAQ companies, value-up disclosures focused more on growth than dividends. Noeul aims to achieve profitability before 2027. In particular, it set a goal to sign two or more contracts with global companies to leap forward as a global company. Osstem plans to invest more than 10% annually in research and development (R&D) costs compared to the 2021-2023 average until 2027. Through this, it plans to invest at least 21 billion KRW in R&D by 2027. Hys Air also announced a goal to achieve an average annual sales growth of 13% through diversification of clients. Additionally, it plans to strengthen financial soundness by improving operating performance, selling non-operating assets, and reducing debt ratios.

However, stock prices moved differently for each company that made value-up disclosures. For example, Hys Air, which made a value-up disclosure on January 13, closed at 1,457 KRW on the day but ended trading at 1,411 KRW the previous day. On the other hand, HMM, which made a disclosure on January 22, saw its stock price rise from 19,170 KRW on the day to 20,600 KRW the previous day. A financial investment industry official explained, "Stock prices do not rise solely based on corporate value enhancement plan disclosures," adding, "Actual plan implementation and achievement of goals will be important factors."