DK&D acquires 2 billion won worth of its own stocks

DK&D (CEO Min-seok Choi), an eco-friendly materials specialist, announced on the 17th through a public disclosure that it has decided to acquire/burn its first treasury stocks in 2025 to implement its plan to increase corporate value.

Following the burn of 876,573,000 shares of treasury stock held in 2024, the purchase and burn of 2 billion won (approximately 625,000 shares) this time has reduced the number of outstanding shares without changing the capital, thereby expanding the basis for re-evaluation of corporate value with an indirect stock price increase effect, and this decision seems to show confidence in the future value of DK&D in the mid- to long-term.

Last year, the company announced through its corporate value enhancement plan disclosure that it would improve the profitability of existing products by enhancing manufacturing competitiveness, increase sales by developing new sales channels, and increase return on equity (ROE) through fundamental profitability enhancement, as well as increase the net asset value per share (PBR) by purchasing and burning at least KRW 8 billion of its own stock by 2027.

This decision to purchase and burn is a key implementation measure of DK&D's corporate value enhancement plan. As a result, approximately 4.3% of the total number of issued shares will be burned. The period for acquiring treasury shares for burn is until August 18.

DK&D is a company specializing in synthetic leather and non-woven eco-friendly materials applied in various fields, and has recently been actively advancing into new industrial fields such as applying the company's products to high-end electronic devices. It is pursuing fundamental ROE improvement by maximizing the efficiency and effectiveness of the internalized global value chain between raw material procurement from Shanghai, China, synthetic leather manufacturing facilities in Korea, non-woven manufacturing in Vietnam, and sales corporations in the United States.

A company official said, “This decision to acquire treasury stocks is a follow-up to the plan to increase corporate value,” and added, “The goal is to increase corporate value so that the dividend yield can be raised to the level of savings deposit interest rates at commercial banks. Since 2021, the company has been steadily growing in appearance and profitability, so we will proceed with the plan to increase corporate value without a hitch.”

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