What Happened? – Solid Announces KRW 2.2 Billion Share Buyback
On September 18, 2025, Solid announced its decision to buy back 338,697 common shares. The estimated amount is approximately KRW 2.2 billion, representing 0.52% of the market capitalization. The buyback is scheduled for September 25.
Why the Buyback? – Enhancing Shareholder Value and Investor Sentiment
Solid stated that this share buyback aims to enhance shareholder value and improve market sentiment. The decrease in outstanding shares is expected to increase earnings per share (EPS) and signals the company’s commitment to shareholder return.
So, What About the Stock Price? – Short-Term Gains Possible, Long-Term Outlook Uncertain
The share buyback could boost the stock price in the short term. However, Solid’s first-half 2025 results showed declining sales and profits, coupled with increasing debt. Therefore, it’s difficult to be optimistic about the long-term stock outlook. The key variables will be the performance of its core businesses, including 5G, Open RAN, defense contracts, and venture capital investments.
What Should Investors Do? – Remain Cautious, Monitor Key Indicators
The investment recommendation is ‘Hold.’ Investors should closely monitor global telecom market recovery, Open RAN performance, defense and venture capital investment outcomes, further shareholder return policies, and debt reduction efforts to inform their investment strategies.