"Committed to Value-Up": Celltrion Buys Back and Cancels Treasury Shares Worth Trillions Less Than Two Years After Integration

KRW 750 Billion in Share Buybacks This Year Alone

Celltrion is accelerating its value-up initiatives, including share buybacks and cancellations, to enhance corporate value. Since the launch of the integrated Celltrion, the company has repurchased and canceled treasury shares worth approximately KRW 1.186 trillion and KRW 1.6 trillion, respectively, all within less than two years.

A view of Celltrion Plant 2 in Songdo, Incheon./Incheon Photo by Hyunmin Kim kimhyun81@

According to the financial and bio industries on July 23, Celltrion initiated an additional treasury share buyback worth KRW 100 billion through on-market purchases the previous day. This marks the eighth treasury share buyback by Celltrion this year alone, with a total value reaching about KRW 750 billion. The amount of treasury shares canceled this year also stands at approximately KRW 900 billion.

Holding company Celltrion Holdings, Celltrion Group Chairman Seo Jungjin, Celltrion Skincure, and company executives and employees are also set to acquire Celltrion shares totaling KRW 740 billion. In May, the company decided on a free capital increase, allocating 0.04 new shares per common share to enhance shareholder value.

Celltrion has consistently emphasized shareholder returns. Notably, after the establishment of integrated Celltrion in December 2023, the company acquired treasury shares worth about KRW 436 billion over six separate occasions the following year. The amount of treasury shares canceled in the same year also approached KRW 700 billion. In the second year, which is this year, the company has already exceeded last year’s scale, even though only about half the year has passed.

Celltrion’s commitment to value-up was also evident in its second-quarter earnings announcement. Unusually, the company released its preliminary results about two weeks earlier than usual. Celltrion explained this was to quickly inform investors, as it achieved the highest second-quarter results in its history.

Through its ‘Value-Up Program,’ Celltrion has set a goal to achieve an average shareholder return rate of 40% over the next three years, by 2027. The Value-Up Program focuses on: ▲ sales growth (annual average sales growth of at least 30%), ▲ profitability improvement (achieving a return on equity, ROE, of at least 7%), and ▲ shareholder returns (achieving an average shareholder return rate of 40% over three years).

There is also an assessment that the company’s treasury shares are undervalued in the market. On July 22, NH Investment & Securities maintained its target price for Celltrion at KRW 230,000 and a ‘Buy’ rating. The closing price on the same day was KRW 181,000.

Celltrion plans to directly address such assessments through its ongoing value-up policies. A Celltrion representative stated, “Management prioritizes shareholders and pursues co-growth,” adding, “While the share price is currently undervalued due to internal and external uncertainties, we will continue to actively pursue shareholder return policies.”

Meanwhile, Celltrion achieved record annual sales of KRW 3.5573 trillion last year and posted its highest-ever first-quarter sales this year. In the second quarter, the company also announced preliminary results with sales of about KRW 961.5 billion and operating profit of KRW 242.5 billion, continuing its growth trend. Both sales and operating profit are the highest ever for a second quarter.

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