Coway is up more than 8% in early trading on the 11th. With record quarterly results in the first quarter, buying is seen on expectations for expanded shareholder returns and achieving 5 trillion won in annual revenue.
As of 10:17 a.m. on the 11th, Coway was trading at 95,300 won on the Korea Exchange, up 7,700 won (8.79%) from the previous session.
Coway said on the 8th that it posted consolidated first-quarter revenue of 1.3297 trillion won and operating profit of 250.9 billion won. Revenue rose 13.2% from a year earlier, and operating profit increased 18.8%. The market is also discussing the possibility that annual revenue could exceed 5 trillion won for the first time if the current growth continues.
Coway also said in its first-quarter conference call that it will expand shareholder returns. Kim Sun-tae, Coway chief financial officer (CFO), said, "We carried out a 50 billion won share buyback this year and plan to increase cash dividends going forward," adding, "We plan to maintain dividends of 700 won per share for the first through third quarters."
Cho Sang-hoon, a researcher at Shinhan Investment & Securities, said, "We should focus on the business model that generates stable cash flow, the high proportion of overseas revenue, and the valuation attractiveness," adding, "An increase in the controlling shareholder's equity stake and the implementation of quarterly dividends are factors that support the downside of the stock price."