Hyosung ITX to enhance shareholder return further with quarterly dividend payouts and more
Tue Mar 10 09:09:35 KST 2020
Hyosung ITX (CEO: Kyung Hwan Nam), an IT subsidiary of the Hyosung Group, will implement stronger measures to enhance shareholder return.
Starting this year, the company will pay dividends on a quarterly basis and increase the amount of dividends by 30%. In addition, electronic voting will be actively used to increase shareholder value.
First, the company will pay dividends every quarter starting business year 2020. Previously, dividends were paid once a year at the end of the fiscal year, but the quarterly dividend payment scheme is expected to help build a shareholder-centered management culture.
Hyosung ITX plans to pay KRW 150 per share in the first three quarters and KRW 200 at the close of the fiscal year. Dividend per share (DPS) will amount to a total of KRW 650, up by 30% from KRW 500, as the final dividend to be paid for fiscal year 2019. The expected dividend yield is 4.7% based on the closing price of KRW 13,900 on March 9, 2020.
The company has been steadily buying back its shares, too. The average shareholder return ratio, i.e., ratio of net profit to the sum of dividends and share buybacks, for the recent 3 years stands at 70.1%. It is more than two times higher than the average of all listed companies, which is 31.5%. According to analysts, the figure indicates that Hyosung ITX is giving back a relatively high ratio of profit to its shareholders.
Hyosung ITX is also encouraging shareholders to use the electronic voting system. The company introduced the electronic voting system in 2018 to protect the voting rights of minority shareholders and to make it easy for more shareholders to participate in general shareholders′ meetings. Copies of the electronic voting guide together with power of attorney have been distributed to allow shareholders to exercise their voting rights in spite of external factors including the spread of the new coronavirus.
″The new measures are intended for the market to build solid confidence in Hyosung′s growth potential and commitment to increasing shareholder value. Hyosung will adhere to advanced practices to increase shareholder return, based on the stable growth of its key businesses including contact centers and smart factory projects,″ said Kyung Hwan Nam, CEO of Hyosung ITX.
Hyosung ITX, an IT solution unit of the Hyosung Group, is building network infrastructure including contact centers that serve as a window for customer services and cloud services and is selling beam projectors and display equipment. Based on the consolidated financial statements, sales reached KRW 388.2 billion in 2019, resulting in net profit of KRW 10.8 billion and operating profit of KRW 13.0 billion, up by 44% and 15%, respectively, from the previous year. The company has posted the best earnings since its founding in 1997.
*About Hyosung : Hyosung Corporation is a South Korean industrial conglomerate, founded in 1966. It operates in various fields including heavy Industrial machinery, advanced materials, chemical industry, and textiles. Its CEO is Hyun-Joon Cho and the headquarter is in Mapo-gu, Seoul. Hyosung has a global network of about 90 sites in the U.S., China, Europe and other parts of the world, with about 30,000 employees. Tire reinforcements, spandex, and seatbelt yarns are No.1 in global market share."
- Next : Chairman Hyun-Joon Cho to construct the world's largest liquid hydrogen plant
- Prev : Hyosung ITX accelerates Smart Factory Project