Coway's stock is showing strength in early trading on the 7th. Coway announced an active shareholder return policy that includes cash dividends and the complete buyback of its own shares, which contributed to this rise.
As of 10:04 a.m. on the 7th, Coway's shares are trading at 69,600 won, up 8.58% (5,500 won) from the previous trading day in the securities market. During trading, it rose to 70,200 won, recovering the 70,000 won level.
The day's gains were influenced by Coway announcing a shareholder return policy that exceeds market expectations. Earlier, Coway stated after the market closed the previous day that it would increase the total shareholder return rate from the previous 20% to 40% through cash dividends and the complete buyback of its shares. Additionally, it has also announced plans for a value-up disclosure aimed at enhancing corporate value within the first quarter of this year.
In response, Shinhan Investment Corp. raised its target price from 78,000 won to 82,000 won, noting that Coway's early announcement of the shareholder return policy suggests an expected increase in corporate value.
Cho Sang-hoon, a researcher at Shinhan Investment Corp., analyzed, "While the disappointing shareholder return policy was a blemish compared to the best-ever performance, the change in policy has made a reassessment of the stock price possible," adding, "The establishment of a corporate value enhancement plan is happening faster than we expected, and an aggressive shareholder return policy is expected to increase corporate value."