1. What Happened? : Manho Steel Announces ₩25 Billion Share Buyback

On September 25, 2025, Manho Steel announced a significant share buyback and cancellation program amounting to ₩25 billion, representing 17.67% of its total outstanding shares. This move, aimed at enhancing shareholder value, is creating ripples in the market.

2. Why? : The Rationale and Expected Impact of the Buyback

Share buybacks reduce the number of outstanding shares, thereby increasing earnings per share (EPS) and book value per share (BPS). This translates to higher returns for shareholders and fuels expectations of a stock price increase. In Manho Steel’s case, the substantial ₩25 billion buyback is likely to attract market attention and be interpreted as a positive signal.

3. So What? : Positive Effects and Hidden Risks

  • Positive Effects: Enhanced shareholder value, stock price appreciation potential, possible improvement in financial structure
  • Hidden Risks: Potential cash depletion, uncertainty of actual impact, market volatility, existing fundamental risks (global economic downturn, increased competition, past financial issues, etc.)

Despite a decline in sales in FY2023, Manho Steel showed positive signs by reducing its operating loss through cost reductions and improved gross profit margin. However, external factors like the global economic downturn and increased competition, along with internal factors such as past financial statement revisions, remain potential risks.

4. Investor Action Plan : Proceed with Caution

While the share buyback may provide short-term momentum for stock price appreciation, long-term investment decisions should prioritize fundamental improvement. Investors should carefully consider the current business environment, financial health, and external factors before making investment choices. Avoid impulsive decisions based solely on the share buyback announcement.