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.
FAQ
What is a share buyback?
A share buyback is when a company repurchases its own outstanding shares, reducing the number of shares available on the market. This often increases the value of the remaining shares.
What is the size of Solid’s share buyback?
The buyback is worth KRW 2.2 billion, representing 0.52% of the total outstanding shares.
What is the outlook for Solid’s stock price after the buyback?
While the buyback might positively impact the stock price in the short term, the long-term outlook depends on Solid’s business performance improvements.
What should investors pay attention to?
Investors should monitor Solid’s core business performance, debt reduction efforts, and potential further shareholder return initiatives.
