1. What is LTC’s Shareholder Return Policy?
On July 31, 2025, LTC announced plans to increase cash dividends, distribute LSE stock dividends, and implement a stock split to enhance shareholder value.
- Cash Dividends: Dividend payout ratio increased to at least 15% (starting from FY2025), and 50% of LSE’s dividends will be distributed to LTC shareholders (assuming LSE is listed).
- Stock Dividends: 10% of LSE’s IPO shares will be distributed as stock dividends to LTC’s common shareholders (excluding major shareholders and related parties, assuming LSE is listed).
- Stock Split: A 100-200% stock split will be implemented to increase LTC’s trading volume (concurrently with cash/stock dividends).
2. LTC Fundamentals and Market Conditions
LTC’s Q1 2025 earnings were weaker year-over-year, but the order backlog for the equipment business is positive, and there is growth potential in new businesses. The current KRW/USD and KRW/EUR exchange rates are stable, but rising raw material prices and interest rates could impact LTC’s performance. The long-term growth outlook for the display and semiconductor industries is positive, but increased competition should be considered.
3. How Will the Shareholder Return Policy Affect LTC’s Stock Price?
Increased cash dividends could improve investor sentiment, but the actual dividend amount may vary depending on future earnings. LSE stock dividends offer additional investment opportunities, but LSE’s growth and listing status are key variables. The stock split could increase liquidity but also has the potential to dilute share prices.
4. Investor Action Plan
LTC’s shareholder return plan could be positive for the stock price in the short term, but investors should consider the potential dilution effect of the stock split and the uncertainty surrounding LSE’s listing and performance. It’s crucial to continuously monitor information related to LSE, LTC’s future earnings announcements, and market reactions to develop an effective investment strategy.