After the reorganization of the business structure fell through, Doosan Bobcat announced plans to enhance its corporate value. The main points include switching to quarterly dividends and introducing a minimum dividend. However, the effects of the stock price increase lasted only about an hour.
Doosan Bobcat's shares traded at 41,650 won on the KOSPI market at 2:20 p.m. on the 16th, down 2.91% (1,250 won) from the previous trading day. After Doosan Bobcat announced its corporate value enhancement plan that morning, the stock price jumped to 45,350 won, but has been declining since then.
Doosan Bobcat plans to present a 40% shareholder return rate for three years starting in 2025 and to introduce a minimum dividend of 1,600 won. The frequency of dividends will also shift from the current biannual (twice a year) to quarterly (four times a year).
According to the shareholder value enhancement plan, Doosan Bobcat shareholders will receive dividends of 400 won per share in the first, second, and third quarters of 2025. The year-end dividend for 2025 will be at least 400 won, and depending on the shareholder return rate and stock market conditions, Doosan Bobcat may increase the dividend amount or buy back shares.
Doosan Bobcat also decided to buy back and retire its own shares worth 200 billion won as a special shareholder return. The scale of the buyback and retirement will be about 4.66% of the total number of shares issued, amounting to approximately 4.66 million shares.
Although Doosan Bobcat's stock price did not continue its upward trend on that day, it was evaluated positively in terms of expanding medium- to long-term shareholder returns. The current dividend yield compared to Doosan Bobcat's stock price is about 3.84%, and considering the buybacks and retirements, the shareholder return yield exceeds 8%. The average shareholder return rate for industrial corporations is above 5%.
Lee Dong-heon, a researcher at Shinhan Investment Corporation, noted, "Considering that Doosan Bobcat holds a monopolistic position in the market, it is expected to generate over 500 billion won in net profit for controlling shareholders annually," adding, "This implies a commitment to guarantee at least a 5% shareholder return rate compared to the current stock price."
This researcher also stated, "Doosan Bobcat's corporate value enhancement plan came after the group's restructuring efforts fell through," and emphasized that "from the perspective of accepting the current governance structure and investing in Doosan Bobcat's shareholder returns and growth, this is a significant decision."