1. Inhwa Precision’s Interim Dividend: What Happened?

Inhwa Precision announced a cash interim dividend of KRW 1,000 per share on August 20, 2025. The record date is September 5th, and the payment date is September 19th. The dividend yield based on the current stock price is approximately 2.2%.

2. Why the Interim Dividend?

While no official reason was given, it’s likely due to the improved performance in the first half of 2025 (revenue +13.57% YoY, operating profit +23.71% YoY) and a strengthened shareholder return policy. However, net profit decreased by -58.55% YoY due to losses from investments in affiliated companies, a point investors will likely demand clarification on.

3. Impact on Stock Price:

Short-Term Impact:

  • Positive momentum is expected until the ex-dividend date, but the dividend size itself is unlikely to trigger a significant change.
  • Short-term cash outflow will occur due to dividend payments, but the risk of insolvency is low.

Long-Term Impact:

  • Consistent dividend policies can enhance shareholder value and long-term investment attractiveness.
  • However, sustained stock price growth depends on fundamental improvements, including core business growth, improved financial structure (especially high debt ratio), and risk management of investments in affiliated companies.

4. What Should Investors Do?

Instead of solely focusing on the dividend yield, investors should thoroughly analyze the company’s fundamentals, particularly financial soundness and investment risks related to affiliated companies. Evaluate the long-term growth potential, comparing the current stock price with the dividend yield to determine investment attractiveness. Also, pay attention to changes in the macroeconomic environment, such as exchange rates, interest rates, and commodity prices.