Daedong Metals, a specialized cast parts manufacturer of the Daedong Group, disclosed on the 11th that its board of directors resolved to enter into a KRW 1 billion treasury stock acquisition trust agreement.
This treasury stock acquisition trust agreement is being pursued to enhance corporate value and practice responsible management. The contract period runs from the 11th to Dec. 10, and after signing, the company plans to acquire treasury shares through on-exchange purchases via the trustee.
Daedong Metals plans to cancel all treasury shares acquired through this trust agreement upon completion of the purchase. Through this, it expects a tangible shareholder return effect by reducing the number of shares outstanding and increasing per-share value. The KRW 1 billion size of this trust agreement corresponds to about 5% of the total number of shares issued based on the closing price on the day before the board resolution.
Daedong Metals has maintained a shareholder-friendly management stance through dividends and bonus issues. Since its founding, the company has paid dividends for 30 consecutive years, and in Mar., it improved shareholder accessibility through a 100% bonus issue allocating one common share for every one share held. It also presented targets through a disclosure of plans to enhance corporate value to achieve sales of 240 billion won, a price-to-book ratio (PBR) of 2, a return on equity (ROE) of 10%, and a price-earnings ratio (PER) of 10 by 2030.
Founded in 1947, Daedong Metals is a specialized cast and cast-iron corporation that has steadily supplied parts for agricultural machinery and automobiles. Recently, beyond its existing core businesses, it has been actively expanding into high-value precision casting for ship engines, industrial machinery, and semiconductor equipment. In addition, in connection with the group's future businesses, it is preparing to enter advanced materials for future agriculture, Robotics, and mobility.