1. Maeil Dairy’s Treasury Stock Disposal: What Happened?

Maeil Dairy has decided to dispose of 67,450 common shares (approximately KRW 2.4 billion). The stated purpose is to provide special bonuses to employees. This is interpreted as an attempt to encourage employees amid sluggish performance in the first half of 2025.

2. Why Dispose of Treasury Stock?

The company explained that the purpose is to provide special bonuses to boost employee morale and motivation. Despite the sluggish performance in the first half, it appears to be a message of recognizing employees’ hard work and investing in long-term growth.

3. Impact on Stock Price?

In the short term, there may be an EPS dilution effect due to the increase in the number of shares, but the impact on the stock price is expected to be limited due to the small size of the disposal. The move could potentially be viewed positively as boosting employee morale, contributing to long-term corporate value enhancement. However, the KRW 2.4 billion cash outflow from the disposal could be a financial burden.

4. What Should Investors Do?

Rather than focusing solely on the treasury stock disposal, investors should pay attention to whether Maeil Dairy can improve the profitability of its core business and secure financial soundness. An investment strategy should be established considering the growth of premium products and new businesses, as well as macroeconomic variables.