Huons Group to Buy Back 8 Billion KRW of Treasury Shares... "Confidence in Enhancing Corporate Value, Improving Shareholder Value"

Huons Global Acquires 5 Billion KRW and Humedics Acquires 3 Billion KRW

[Asia Economy Reporter Lee Gwan-joo] Huons Group has decided to repurchase approximately 8 billion KRW worth of its own shares.

Huons Global and Humedics announced on the 16th through their respective board meetings that they decided to repurchase their own shares worth 5 billion KRW and 3 billion KRW, respectively. This share repurchase decision comes after 1 year and 7 months. Huons Global and Humedics had previously repurchased their own shares worth 4 billion KRW and 3 billion KRW, respectively, in August 2020.

The company explained, "Despite increasing uncertainties, we decided to repurchase our own shares based on confidence in enhancing future corporate value, as evidenced by stable sales growth last year," adding, "This is to boost somewhat undervalued stock prices as part of enhancing shareholder value and responsible management, thereby strengthening trust with shareholders."

Huons Global recorded sales of 575.6 billion KRW last year, a 10% increase compared to the previous year on a consolidated basis, and Humedics showed solid growth with sales of 111 billion KRW, up 13% year-on-year. Although the operating profit growth rate slowed somewhat due to increased investments for mid- to long-term growth drivers such as research and development expenses, labor costs, and facility investments, Huons Global earned an operating profit of 75 billion KRW, and Humedics earned 16 billion KRW.

Earlier, considering the increased volatility in capital markets and international affairs due to the Ukraine war, Huons Global announced the suspension of the contract manufacturing organization (CMO) business for the Russian COVID-19 vaccine ‘Sputnik V’ to resolve business uncertainties. Separately from the suspension of the Sputnik V CMO business, Huons, the main operating company of Huons Global, is preparing to strengthen its CMO business through the launch of male prostate health functional foods and expansion of eye drop production facilities, and Humedics is expected to continue its growth momentum with new product catalysts such as PN joint injections and heparin sodium active pharmaceutical ingredients.

A Huons Group official said, “We decided to repurchase our own shares to accompany shareholders who may have had concerns amid rapidly changing international situations and capital flows,” adding, “Huons Group plans to continue its growth by leveraging capabilities in diversified business sectors and will practice responsible management, sound management, and value management based on strong trust with shareholders.”

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