[Click eStock] "LG Uplus, Strengthening Shareholder Returns Positively Impacts Corporate Value"

[Asia Economy Reporter Song Hwajeong] SK Securities on the 9th maintained a 'Buy' rating and a target price of 18,000 KRW for LG Uplus, anticipating that the strengthening of shareholder returns through share repurchases and interim dividends will have a positive impact on the company's value.

LG Uplus announced the share repurchase and interim dividend the previous day. The share repurchase amount is 100 billion KRW, which corresponds to 1.5% of LG Uplus's current market capitalization. Choi Gwansoon, a researcher at SK Securities, stated, "This is the first share repurchase since LG Uplus was founded. Despite the LG Uplus stock price rising 31.1% compared to the end of last year, the decision to repurchase shares can be interpreted as a declaration of intent to enhance shareholder value and confidence from management in their performance." He added, "Also, since treasury shares are excluded from dividends, this is expected to expand the dividend resources available to common shareholders."

The interim dividend will be implemented starting this year, and its amount will be determined through future board resolutions. Researcher Choi explained, "The decision to pay an interim dividend reflects confidence in stable quarterly cash flow," adding, "It is also positive for the stock price in terms of attracting new dividend investors and long-term investors."

This shareholder return is expected to lead to an increase in corporate value. Researcher Choi said, "LG Uplus, which had a discount factor in terms of shareholder returns compared to competitors, can now expect gradual corporate value growth through this strengthening of shareholder returns."

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