Treasury Stock Disposal: What’s Happening?
On September 23, 2025, Pangrim decided to dispose of 209,215 treasury shares (0.52% of total common stock) over-the-counter to fund employee bonuses. The disposal amount is approximately KRW 1.1 billion.
Purpose and Scale of Disposal: Impact on Stock Price?
The purpose of this treasury stock disposal is to provide employee bonuses. This is part of the company’s internal management activities and can be expected to have a positive effect on employee motivation and performance compensation. As the disposal scale is very small compared to the total number of issued shares, the stock dilution effect is expected to be minimal. While it may act as a supply burden in the short term, considering Pangrim’s improving fundamentals, the impact is expected to be insignificant.
Pangrim’s Q3 Earnings Turnaround!
Pangrim achieved a turnaround in Q3, recording consolidated revenue of KRW 88.3 billion (+9% YoY), operating profit of KRW 760 million (turned to profit), and net income of KRW 3.95 billion (+65% YoY). The main factors contributing to this strong performance are reduced SG&A expenses, improved cost of goods sold ratio, gains from the disposal/valuation of financial assets, and increased foreign exchange gains.
Investment Strategy: What Should You Consider?
In the short term, investors should monitor stock price volatility due to the treasury stock disposal, but if the trend of improving fundamentals continues, this could be considered a buying opportunity. In the medium to long term, maintaining a positive investment outlook is recommended, focusing on the strong Q3 results and the expected improvement in profitability. It’s crucial to continuously monitor the growth potential of the eco-friendly materials business and the performance improvement of the Vietnamese subsidiary.
FAQ
What is the purpose of Pangrim’s treasury stock disposal?
It is for the payment of employee bonuses.
What is the scale of the treasury stock disposal?
It involves 209,215 shares, representing 0.52% of the total common stock.
What is the impact of the treasury stock disposal on the stock price?
While it may create a supply burden in the short term, the impact is expected to be minimal due to the small scale and solid fundamentals.
How was Pangrim’s Q3 performance?
The company achieved a turnaround, recording KRW 88.3 billion in consolidated revenue, KRW 760 million in operating profit (turned to profit), and KRW 3.95 billion in net income.
What should I consider when investing in Pangrim?
Monitor short-term stock price volatility due to the treasury stock disposal and, in the medium to long term, track the growth potential of the eco-friendly material business and the performance of the Vietnamese subsidiary.
