Hansem (009240.KQ), a comprehensive home interior company, has announced a medium- to long-term shareholder return policy that combines quarterly dividends with large-scale share buybacks.
Hansem said Tuesday that it judges its current share price to be undervalued relative to the company's intrinsic value and is taking full-fledged steps to enhance shareholder value. To this end, the company disclosed a medium- to long-term shareholder return policy that includes setting June 30 as the record date for second-quarter dividends, signing a trust agreement to acquire 50 billion won worth of treasury shares, and targeting a shareholder return rate of 50% or more.
The core of the policy is the introduction of a new shareholder return framework that combines cash dividends with share buybacks. Hansem set a goal of returning more than 50% of adjusted net profit on a separate basis to shareholders. The company explained that the strategy takes into account both shareholders who prefer cash dividends in the short term and those who expect long-term gains in corporate value.
Hansem first set June 30 as the record date for second-quarter cash dividends. However, the dividend amount and the scheduled payment date have not yet been finalized. The company plans to determine the dividend size after comprehensively reviewing overall financial conditions, including cash and cash equivalents, liquidity, debt repayment plans, investment plans, and the size of retained earnings.
The company is also pursuing share buybacks to enhance shareholder value. Hansem plans to acquire a total of 50 billion won worth of treasury shares through Shinhan Investment & Securities by December. As a principle, the acquired treasury shares, including existing holdings, will be cancelled in accordance with relevant laws.
Treasury share cancellation is regarded as a representative shareholder return tool that raises earnings per share (EPS) by reducing the number of shares in circulation. Amid a continuing trend of listed companies expanding treasury share cancellations in line with the government's recent corporate value-up policy stance, Hansem is also joining the move toward active shareholder return policies.
"We judge that the current share price is significantly undervalued relative to the company's intrinsic value," a Hansem official said. "We have included our intention to substantially enhance shareholder value by preemptively purchasing treasury shares during this undervalued period."
