Daedong Group's cast parts specialist Daedong Metals said on the 8th that it will cancel all of its treasury shares worth 1 billion won to enhance shareholder value.
Daedong Metals held a board meeting on the 7th and decided to cancel all 304,800 treasury shares acquired through open-market purchases. The cancellation amounts to about 4.78% of total shares outstanding, and the effective date is the 14th.
This treasury share cancellation executes the "acquisition and cancellation of treasury shares" plan released last month and is part of a practical shareholder return policy aimed at boosting shareholder value by reducing the number of shares in circulation. Daedong Metals plans to continue strengthening its management stance centered on responsible management and shareholder returns.
Since its founding, Daedong Metals has paid dividends for 30 consecutive years, and in March carried out a 100% bonus issue, allotting one new common share for each existing share, continuing its shareholder-friendly policies. Last month, through a value-up disclosure, it presented mid- to long-term targets including 240 billion won in revenue by 2030, a price-to-book ratio (PBR) of 2, and a return on equity (ROE) of 10%.
Daedong Metals plans to accelerate efforts to enhance corporate value by pursuing five core strategies: expanding orders for high value-added castings, commercializing advanced materials for smart farms and robots/mobility, manufacturing AX (AI transformation), and strengthening ESG management.
Lee Poong-woo, CEO of Daedong Metals, said, "This treasury share cancellation is meaningful in that it did not stop at merely releasing a shareholder return plan but executed it swiftly," adding, "We will increase the pace of executing the five core strategies that continue shareholder-friendly policies such as dividends, bonus issues, and treasury share cancellations, and carry that through to mid- to long-term corporate value enhancement."