[Stock in Focus] Sebang Global Battery Rises 4.65% on "Corporate Value Enhancement Plan" Announcement

The stock price of Sebang Global Battery is on the rise following the announcement of its value enhancement plan.

As of 9:18 a.m. on November 28, Sebang Global Battery was trading at 67,500 won, up 3,000 won (4.65%) from the previous trading day.

The previous day, the company announced its "corporate value enhancement plan," stating that it would raise its dividend payout ratio to 25% and retire 1% (140,000 shares) of its total shares. In terms of growth, the company set a target of achieving an average annual sales growth rate of 7% over the four years through 2028. From a profitability perspective, the goal is to maintain a return on equity (ROE) of over 10% through 2028.

On this day, Song Sunjae, a researcher at Hana Securities, said, "The key point is the increase in the dividend payout ratio. With Sebang Global Battery raising its payout ratio to 25% starting from this year's settlement, the dividend per share to be paid in April next year is expected to be around 2,400 won. Based on the previous day's closing price, the expected dividend yield would be 3.7%," he explained.

He added, "The enhancement of the shareholder return policy will positively contribute to the valuation-which had been discounted due to excessive cash holdings and capital allocation concerns. Considering overall growth prospects, the current stock price appears undervalued."