[Market Feature] "Shareholder Return Execution" Misto Holdings Surges Over 4%

Decision to Cancel All Previously Acquired Treasury Shares, Accounting for 11.7% of Total Issued Shares

The stock price of Misto Holdings, a domestic comprehensive fashion brand operator, is on the rise following its decision to cancel treasury shares.

As of 9:19 a.m. on December 17, Misto Holdings was trading at 44,900 won, up 1,800 won (4.18%) from the previous trading day. Earlier in the session, the stock price had jumped as much as 8.35% to 46,700 won.

The previous day, Misto Holdings announced, "We have decided to cancel all 7,003,999 treasury shares previously acquired, which represent 11.7% of the total issued shares." The company also stated that it plans to cancel treasury shares acquired through subsequent buybacks as well.

On this day, NH Investment & Securities maintained its "Buy" rating on Misto Holdings, stating, "We expect a revaluation of the company's efforts to enhance corporate value and a further rise in the stock price," and raised its target price by 13% to 61,000 won.

NH Investment & Securities researcher Jung Ji-yoon noted, "From March to the present, the company has executed shareholder returns totaling 230 billion won through treasury share buybacks and interim dividends combined," adding, "This means the company has achieved 46% of its maximum shareholder return target of 500 billion won set for 2025 to 2027." Jung also commented, "While the company has been actively buying back shares, it was disappointing that there had been no announcement of cancellation. However, as of December 23, all treasury shares held will be cancelled."

The company's core business performance is also positive. Jung stated, "In the fourth quarter of this year, consolidated sales are expected to reach 870.7 billion won and operating profit to 14.4 billion won, marking a turnaround to profitability compared to the same period last year." Jung added, "These results are expected to be largely in line with previous estimates and the market consensus."