1. What Happened? BH Announces Stock Buyback!
BH announced on September 18, 2025, that it will buy back 752,841 common shares (2.35% of market capitalization), totaling KRW 14.4 billion. This repurchase utilizes previously acquired treasury stock.
2. Why? Background and Implications
This buyback is interpreted as a response to the company’s weak performance in the first half of 2025. Sales decreased by 58.8% year-on-year, and operating income recorded a loss of KRW 9.3 billion. In this context, the stock buyback demonstrates BH’s commitment to enhancing shareholder value and improving investor sentiment.
3. What’s Next? Analyzing Short-Term/Long-Term Impacts
Short-term, there is potential for upward momentum in the stock price due to positive market reaction to the shareholder return policy. However, the long-term share price hinges on the recovery of the FPCB business and the growth of the automotive electronics business. While the automotive segment shows growth potential, it’s not yet substantial enough to offset the FPCB slump. Macroeconomic conditions (exchange rates, interest rates, raw material prices) and uncertainties in the IT market will also influence the stock price.
4. Investor Action Plan
- Short-term investors: Focus on stock price movements immediately after the buyback announcement and consider short-term profit-taking strategies.
- Long-term investors: Closely monitor FPCB business recovery, automotive business growth, macroeconomic indicators, etc.
Disclaimer: This content is not investment advice, and all investment decisions are the responsibility of the investor.