Dongwon Fisheries Scales Up Corporate Value with 56 Years of Deep-Sea Competitiveness..."Returns to Shareholders Once Distributable Profits Secured"

Dongwon Fisheries Co., Ltd. (030720) is accelerating efforts to enhance its corporate value by leveraging its 56 years of accumulated competitiveness in deep-sea fishing. Recently, after hinting at plans for additional stake purchases by its largest shareholder, the company strengthened communication with the market by releasing a second letter to shareholders, outlining its commitment to shareholder returns and management innovation.

On August 5, Dongwon Fisheries Co., Ltd. announced that it had posted a "Letter to Shareholders" on its official website, once again underscoring its resolve to improve corporate value and pursue shareholder returns.

According to the company, this letter emphasizes plans to fundamentally boost corporate value by leveraging the competitiveness accumulated over 56 years in deep-sea fishing while proactively sharing future achievements with shareholders.

Dongwon Fisheries Co., Ltd. stated, "For 56 years, we have been a company responsible for food security, growing alongside the history of Korea’s deep-sea fisheries industry," adding, "In the first half of this year, despite challenging business conditions such as high oil prices and unfavorable exchange rates, we achieved results that exceeded market expectations."

The company was the first in Korea to develop sashimi-grade tuna as a processed product and export it to Japan, contributing to the expansion of tuna consumption culture domestically by supplying tuna to the Korean market through its subsidiaries. It also explained that the company has spearheaded the advancement of Korea's deep-sea fisheries sector by pioneering new fisheries not only in the South Pacific but also in the Atlantic Ocean, expanding seafood exports, and acquiring foreign currency.

Dongwon Fisheries Co., Ltd. diagnosed that the company's current challenges do not stem from declining business or technological competitiveness, but rather from recent changes in the capital market environment. Going forward, the company plans to pursue new growth engines, improve profitability, and drive management innovation, all based on its know-how in deep-sea fishing, global distribution network, seafood processing technology, and the value chain stretching from fishing to processing and cold-chain logistics.

The company also outlined more concrete shareholder return policies. "Although we have not been able to pay dividends thus far due to the lack of distributable profits under the Commercial Act, we will share the benefits with shareholders as soon as distributable profits are secured," the company stated, adding, "Returning achievements to shareholders as the company grows is a natural responsibility."

Operating results are also improving. In the first half of this year, Dongwon Fisheries Co., Ltd. saw its consolidated operating profit increase by 33% year-on-year, and net profit grow by 62.9%. With the new trawler "DW NOVA" scheduled to commence operation in the second half of the year, the company expects the upward trend in results to continue.

Currently, the book value per share (BPS) stands at 12,115 won, while the recent stock price is around 5,500 won, resulting in a price-to-book ratio (PBR) of about 0.44 times.

Industry observers are paying attention to the potential for a re-evaluation of the company’s value, as Dongwon Fisheries Co., Ltd. maintains stable long-term profit drivers, including its steady breadcrumbs business and the exclusive New Zealand catch quota, while management continues to signal intentions to increase major shareholders’ stakes and return value to shareholders.

A Dongwon Fisheries Co., Ltd. representative commented, "Our 56-year history was made possible thanks to the dedication of our employees and the trust of shareholders who have supported the company over a long period," adding, "As soon as the legal constraints under the Commercial Act are resolved, shareholder returns will be our top priority, and we will strive to ensure that our corporate value is properly recognized in the market through management innovation."

Dongwon Fisheries Co., Ltd. is accelerating efforts to enhance corporate value by formalizing its commitment to deliver shareholder returns as soon as distributable profits are secured, leveraging the deep-sea fisheries competitiveness it has built over 56 years.

This content was produced with the assistance of AI translation services.