1. Taekwang’s Q1 Dividend Announcement: What Happened?

On August 11, 2025, Taekwang announced a cash dividend of KRW 285 per common share for Q1 2025. The record date is August 26, and the payment date is September 9. The dividend yield is 1.23% based on the current price.

2. Why the Dividend? Background and Implications

This dividend decision is interpreted as an effort to enhance shareholder value based on a robust financial structure. The very low debt-to-equity ratio, 8.31% on a consolidated basis and 6.63% on a standalone basis, supports the sustainability of dividend payments. However, it also suggests an attempt to alleviate concerns about the weak Q1 earnings and stabilize investor sentiment.

3. What Should Investors Do? Investment Strategies

Investing in Taekwang presents both opportunities and risks. While the dividend yield is attractive, the possibility of a share price decline cannot be ruled out if the weak earnings persist. Therefore, investors should consider the following factors when developing their investment strategies.

  • Short-term Strategy: Monitor the stock price movement after the ex-dividend date and check for a turnaround in the secondary battery business in the Q2 earnings announcement.
  • Mid-to-Long-term Strategy: Focus on the competitiveness and overseas order trends of the plant equipment business, and the growth and profitability improvement of the secondary battery business. The impact of exchange rates and macroeconomic variables should also be considered.

4. Investor Action Plan

It is important to make investment decisions from a mid-to-long-term perspective, focusing on changes in the company’s fundamentals without being swayed by short-term stock price volatility. The improvement in the performance of the secondary battery business will be a key factor in investment decisions.