[Click-e Stock] "Samchully Gains Financial Stability Through Treasury Share Cancellation... Shareholder Return Expectations"

67.9% of Treasury Shares Cancelled

On March 19, Hana Securities provided a positive assessment of Samchully’s decision to cancel its treasury shares, highlighting the potential for mid- to long-term profit growth following the company’s business expansion initiatives. The cancellation of treasury shares is spotlighting both shareholder returns and a compelling growth narrative, drawing attention to the possibility of a corporate value re-rating. No investment opinion or target price was provided.

Samchully’s decision to cancel treasury shares is being interpreted as a signal of its shareholder return policy. By canceling 428,000 of its treasury shares, the company lowered its treasury share ratio from 15.56% to 5.59%. This reduction in the number of shares outstanding may serve as a catalyst for an increase in per-share value.

Performance improvements are also continuing. For the fourth quarter of 2025, revenue reached 1.4 trillion won, up 2.1% year-on-year, and operating profit turned positive at 10.7 billion won. In the city gas segment, despite sluggish industrial demand, increased sales to households and for fuel cells compensated for this. Subsidiary S-Power saw improved results due to higher utilization rates, and district energy subsidiaries continued to grow profits thanks to higher heat rates and cost stabilization effects.

Valuation pressure is also low. As of 2025, the price-to-earnings ratio (PER) stands at 4.7 times, and the price-to-book ratio (PBR) is 0.3 times. With annual EBITDA exceeding 300 billion won and net debt remaining at around 40 billion won, financial stability is highlighted. The company is considered to have both stable profit generation and attractive undervaluation.

Samchully has also secured mid- to long-term growth drivers. The company is expanding its business portfolio through the acquisition of food company Seonggyeong Food and is also pursuing the construction of a 500MW-scale district energy power plant. Jaeseon Yoo, a researcher at Hana Securities, stated, “With the steady expansion of new businesses, sustainable mid- to long-term earnings growth is achievable.”

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