Manho Rope & Wire, a specialty steel wire maker, was up more than 8% on the morning of the 26th. With a turnaround to profit expected this year, investors appear to be piling in after the company laid out plans for new businesses and shareholder returns.
As of 10:50 a.m. that day, Manho Rope & Wire was trading at 5,400 won on the Korea Exchange, up 405 won (8.11%) from the previous session.
According to Manho Rope & Wire, the company is expected to swing to a profit this year. It also said it plans to push into new businesses such as robots, auto parts, and defense, and strengthen shareholder returns.
Manho Rope & Wire sources raw materials from POSCO and manufactures industrial steel and fiber products used in buildings, bridges, and cranes. Starting in 2028, it plans to produce nuclear-grade high-carbon steel wire needed for the reactor fabrication of Shin-Hanul Units 5 and 6 by Doosan Enerbility.
Manho Rope & Wire posted losses over the past three years, halting dividends and seeing its share price decline. But after the owner family sold the company, it has been undergoing a major transformation. Chief Executive Ahn Byeong-du, who has taken the helm, moved to normalize management and pursue new businesses.
To advance new businesses, the company is pursuing mergers and acquisitions (M&A). Samjin Mobility, an auto parts maker that generates annual net profit of 2 billion to 3 billion won, is set to become a subsidiary of Manho Rope & Wire, and an M&A deal for a company specializing in actuators for robot joints is in the final stage.
The company also unveiled shareholder return plans. It will soon cancel 15% of its treasury shares and introduce an interim dividend. The company said it would pay dividends of about 6 billion won, or 3% of its market capitalization.