[Click eStock] "DL E&C, Shareholder Return Policy Expected to Improve Investor Sentiment"

Ebest Investment & Securities Report

[Asia Economy Reporter Minji Lee] Ebest Investment & Securities maintained a buy rating and a target price of 190,000 KRW for DL E&C on the 25th, expecting that investor sentiment will improve due to the shareholder value return policy.

DL E&C decided on a 100% free stock dividend at a ratio of 1 new share per 1 existing common share. Before the capital increase, there were 19,358,000 common shares, which will increase to 38,684,000 shares after the capital increase. Among the common shares, 23,848 treasury shares are excluded from the free stock dividend. Preferred shares will also undergo a 1-for-1 free stock dividend in the same manner for 2,113,000 shares. After the capital increase, preferred shares will increase to 42,258,000 shares, excluding 1,934 treasury shares.

The par value is considered to be 5,000 KRW, and it is expected that a total of 107.2 billion KRW in capital surplus will be converted into capital stock. The capital surplus held is 3.3 trillion KRW, of which 3.3% will be used for capital stock replacement due to the free stock dividend. The record date for new share allocation is the 11th of next month, and the new shares are scheduled to be listed on the 28th of the same month.

Dividends are set at a DPS of 2,700 KRW for common shares, with a total dividend amount of 58 billion KRW. This is about 10% of last year's controlling shareholder net profit of 577 billion KRW. Researcher Seryeon Kim of Ebest Investment & Securities said, "This complies with the contents announced at the beginning of last year when the mid- to long-term shareholder return policy was announced," adding, "In a situation where sentiment has weakened and the valuation gap compared to the peer group has widened significantly, it is expected that the shareholder return policy will lead to a flexible reduction of the valuation gap."

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