[Public Notice+] SY to Acquire 1 Million Treasury Shares to Boost Stock Price

[Asia Economy Reporter Eunmo Koo] Comprehensive building materials company ESWY announced on the 3rd through a public disclosure that it has decided to acquire 1 million treasury shares worth 4.22 billion KRW. The treasury share acquisition will take place over three months from today until May 1.

ESWY stated, "Despite the current stock price reflecting poor performance due to decreased construction and facility investment and economic downturn, it is excessively undervalued compared to our infrastructure and growth potential," adding, "We have completed restructuring including the closure of loss-making business sites, and with clear performance improvement factors such as increased demand for premium products due to strengthened fire safety regulations, we are expressing our intention to boost the stock price both internally and externally."

Earlier, ESWY carried out restructuring in the fourth quarter of last year. They sold EPS (Styrofoam) production facilities, which had continuously declining sales due to weak fire safety, and closed two loss-making business sites including the Nonsan factory. It was a high-intensity restructuring including a reduction in executives. The company explained, "We plan to maintain cost competitiveness by flexibly producing color steel sheets, which we have been producing and using in-house, according to market prices," and added, "We estimate that this restructuring will result in an annual profit improvement effect of 5 billion KRW."

The revised and enforced 'Evacuation Fire Prevention Regulations' from the 24th of last month are also favorable for ESWY. The main point is to mandatorily increase the thickness and specifications of color steel sheets used in composite materials for buildings to strengthen fire safety. A company official explained, "This measure is expected to lead to the exit of small-scale companies that have been selling low-priced products using low-spec Chinese color steel sheets and to an expansion in sandwich panel sales. This is because upgrading the specifications of color steel sheets, which account for 70-80% of the product cost, inevitably leads to an increase in product selling prices."

This content was produced with the assistance of AI translation services.