Treasury Share Cancellation and Tax-Exempt Dividends... Why Daishin Securities Stock Is Expected to Rise [Click e-Stock]

On May 20, SK Securities expressed a positive outlook on Daishin Securities' proactive shareholder return initiatives and set a target price of 42,000 won.

Youngim Jang, a researcher at SK Securities, stated in a report released that day, "There is a proper balance between capital expansion to become a mega-investment bank (IB) and shareholder return policies," adding, "Considering the cancellation of treasury shares, the stock offers attractive valuation."

Over the past few years, Daishin Securities has actively expanded its equity capital, reaching 4.1 trillion won in equity capital by the end of last year. As a result, it is expected that the company will be eligible for mega-investment bank (IB) status in 2028.

In February, the company announced a plan to enhance corporate value, which included the cancellation of treasury shares and tax-exempt dividends. Daishin Securities plans to cancel all 9.32 million common shares and 6.03 million preferred shares. To ensure predictability, the process will be carried out in phases over six quarters, with completion targeted for the first half of next year. The remaining 3 million treasury shares will be used as resources for employee performance bonuses and the employee stock ownership association.

Starting this year, Daishin Securities has secured up to 400 billion won in tax-exempt dividend resources over approximately four years. As this period is designated for capital expansion to qualify as a mega-investment bank, the minimum level of common share dividend per share (DPS) of 1,200 won is expected to be maintained until 2028.

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