1. What Happened?

Dongnam Synthetic announced on September 15, 2025, that it would repurchase 20,000 shares, worth KRW 600 million, to stabilize its stock price. The repurchase will be conducted through a public purchase on the stock exchange.

2. Why the Buyback?

The official purpose is ‘stock price stabilization.’ This is interpreted as a move to defend against recent price declines and demonstrate commitment to shareholder value. This can improve investor sentiment and provide downside support for the stock price.

3. So, What Happens to the Stock Price?

In the short term, it is likely to have a positive impact on stock price stabilization and investor sentiment. However, because the repurchase amount is very small compared to the total number of outstanding shares, the impact on fundamentals is expected to be limited. In the long term, it can be interpreted as part of a shareholder return policy and increase investment attractiveness. However, the effectiveness will depend on continued repurchases and improved earnings.

4. What Should Investors Do?

  • Monitor macroeconomic and industry trends: Carefully analyze the impact of external factors such as interest rates, exchange rates, and raw material prices on Dongnam Synthetic’s performance.
  • Check earnings improvement momentum: Investment decisions should not be based solely on the buyback announcement. Critically evaluate the likelihood of earnings improvement in the second half of 2025 and beyond.
  • Check the sustainability of shareholder return policy: Confirm whether the buyback is a one-time event or the beginning of a continued shareholder return policy. Pay attention to the company’s future actions.

A stock buyback is a positive sign, but investment decisions should be made carefully. Make wise investments through continuous company analysis and market monitoring.