Agricultural machinery specialist TYM Co. said on the 11th it decided to increase dividends to boost shareholder value.
TYM Co. posted 940.3 billion won in sales and 64.1 billion won in operating profit on a consolidation basis last year. Sales rose 19.2% and operating profit jumped 298.5% from a year earlier. Net profit also reached 41.1 billion won, up 126% from the previous year.
Stronger overseas market sales and enhanced services drove results, and expense efficiency improvements also aimed to refine the revenue structure. It secured financial soundness by keeping its liability ratio at 102%, the lowest level in the industry.
Based on a stable financial structure, it confirmed settlement of account dividends of 9.6 billion won (240 won per share). The total annual dividends are a record 11.6 billion won (290 won per share).
A TYM Co. official said, "It is TYM Co.'s firm management philosophy to enhance shareholders' investment value and return the achievements as dividends," adding, "TYM Co. will continue to lead efforts to enhance shareholder value by pursuing a sustainable shareholder return policy based on stable performance."
With this decision, TYM Co. also met the criteria for the benefit granted to high-dividends corporations—"separate taxation of dividend income"—defined as a "dividends payout ratio of 25% or more and a year-over-year increase in dividends of 10% or more."
The separate taxation regime for dividend income is a measure to steer corporations toward a high-dividends payout stance to expand shareholder returns and to activate the stock market by promoting long-term investment. Dividend income is not combined with other income, and a separate tax rate standard is applied to reduce investors' tax burdens.
To enhance shareholder value, TYM Co. has been buying back its own shares since 2019. Last year, it decided to cancel treasury shares worth 22.0 billion won, equivalent to 8.1% of total shares outstanding.