[Click eStock] "L&F Treasury Stock Sale Contributes to Corporate Value Increase"

[Asia Economy Reporter Ji Yeon-jin] DS Investment & Securities evaluated on the 27th that "the sale of treasury shares by L&F will continuously contribute to corporate value growth as a means of securing investment funds for future growth" in relation to L&F's recent announcement of treasury share sales.

Researcher Guseongjung of DS Investment & Securities stated, "L&F's sale of treasury shares is considered a reasonable decision for growth," adding, "L&F is expanding its cathode material production capacity to meet the demand from electric vehicle customers, and funding is needed for this."

On the 24th of this month, L&F announced that it would repurchase and cancel 1 million treasury shares. The stock price is 276,600 KRW per share, resulting in approximately 276.6 billion KRW being disposed of. The purpose was explained as raising overseas investment funds and funds for facilities and operations. After the sale, L&F's remaining treasury shares amount to 2,739,000 shares (7.6% of issued shares), with a scale of about 685 billion KRW.

The company announced that following the treasury share repurchase, it would invest 30 million USD in Redwood the next day. This is interpreted as part of securing overseas supply chains and investments in response to LG Energy Solution's expansion into North America.

Researcher Gu said, "With domestic factory expansions, capital expenditures (CAPEX) of over 200 billion KRW annually are expected, and overseas supply chain investments are also underway," adding, "Securing investment funds through the sale of treasury shares is reasonable given the cash assets of 181.8 billion KRW as of the end of the first quarter."

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