HMM announced a plan on the 22nd to enhance corporate value, which includes returning more than 2.5 trillion won to shareholders through dividends and share repurchasing and canceling within a year.
The current shareholder value enhancement plan focuses on five main items: achieving an average annual revenue growth rate of 9%, a return on equity (ROE) of 4%, expanding shareholder returns, reaching key governance indicators, and expanding ESG management and communication with stakeholders.
HMM stated that it will invest 23.5 trillion won by 2030, centered on the '2030 medium- to long-term strategy' announced last September, aiming for an average annual revenue growth rate of 9% and an average ROE of 4% over three years. The plan includes expanding to 1.55 million TEU (130 vessels) for containers and 12.56 million DWT (110 vessels) for bulk, establishing business capabilities on par with global shipping companies.
As a measure to expand shareholder returns, HMM plans to return amounts greater than the smaller of a 30% dividend payout ratio or a 5% dividend yield by 2030. In the short term, they will add additional funds to their medium- to long-term policy to implement a total of over 2.5 trillion won in shareholder returns (including dividends for the 2024 settlement of account) within a year. Shareholder returns will include dividends and share repurchasing and canceling.
HMM noted that to enhance the transparency of corporate governance, it aims to increase the achievement rate of the 'key governance indicators' recommended by the Korea Exchange from 47% in 2023 (market average 49.5%) to 65% by 2030. They have decided to improve predictability regarding cash dividends.
HMM announced that it will invest 14.4 trillion won by 2030 to achieve its net-zero goal by 2045 ahead of schedule. The company plans to increase communication with stakeholders, including shareholders, to enhance credibility.
HMM said, 'We will continuously pursue measures to enhance corporate competitiveness, such as fleet expansion and portfolio diversification, and we will also increase shareholder value through various strategies and improvements related to shareholder returns and corporate governance.'