Handsome Announces Robust Shareholder Returns, "Corporate Value Rises" [Click e-Stock]

Announcement of Robust Shareholder Return Plan

Including Treasury Share Buyback and Cancellation, Increase in Minimum Dividend per Share

DaiShin Securities announced on September 22 that it is maintaining its 'BUY' investment rating and a target share price of 30,000 won for Handsome, citing the company’s announcement of a robust shareholder return plan and visible improvement in third-quarter results.

Yoo Jeong-hyun, an analyst at DaiShin Securities, stated, "Handsome has announced a plan to enhance shareholder value, focusing on repurchasing and canceling treasury shares worth 10 billion won annually for three years from 2026 to 2028, and raising the minimum annual dividend per share to 800 won (with a payout ratio of 20% based on separate operating profit)." He added, "This year's share buyback will take place from the 21st until October 22, and is scheduled to be immediately cancelled on November 6."

Yoo explained, "The decisive announcement of policies to enhance shareholder value is an effort to escape chronic undervaluation despite solid results, and to build market trust as a shareholder-friendly company." He analyzed, "Given the daily buy order limit for treasury shares (62,932 shares) and the recent 60-day average daily trading volume (about 100,000 shares), there are also expectations for a positive stock supply-demand trend in the near term."

Regarding third-quarter performance, he forecasted, "Sales will rise 11% year-on-year to 343.1 billion won, and operating profit will increase 198% to 7.4 billion won." He explained, "With the arrival of September and the ramp-up in autumn-winter product sales, factors such as weather and asset effects have led to a significant uptick in sales growth rate."

He added, "Since September accounts for the majority of the third quarter, it is driving sales growth. Thanks to strong sales of premium fall-winter products and lower inventory levels, operating profit is expected to rebound sharply from last quarter’s weak performance."

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