Jungwon Ensis decided to purchase and cancel 1 billion KRW worth of treasury stocks starting from the 27th for three months. The board approved the buyback program via NH Investment & Securities following a 1.4 billion KRW treasury stock cancellation last month. The company aims to resolve undervaluation by reducing outstanding shares and highlighting asset value through concurrent property revaluations.
Jungwon Ensis Approves 1 Billion KRW Buyback and Cancellation Program
According to Jungwon Ensis on the 24th, the company held a board meeting the previous day and resolved to directly purchase 1 billion KRW worth of treasury stocks on the market through NH Investment & Securities starting from the 27th for three months. All acquired shares will be cancelled. This follows the cancellation of approximately 1.4 billion KRW worth of treasury stocks last month.
The decision focuses on cancellation rather than simple acquisition to reduce the number of outstanding shares and increase per-share value. The company maintains that its stock price is excessively discounted relative to intrinsic value and will continue active shareholder return policies.
Company Advances Asset Revaluation for Eight Properties
Hidden asset value is receiving renewed attention. Jungwon Ensis is pursuing asset revaluation for eight properties including its headquarters building in Sinsa-dong, Gangnam-gu, Seoul. The company estimates the Sinsa-dong headquarters site value alone exceeds 500 billion KRW based on nearby transaction cases. This exceeds the current market capitalization, indicating that asset value is not sufficiently reflected in the books.
Jungwon Ensis Records Three Consecutive Years of Operating Profit
Financial performance maintains a stable trajectory. Jungwon Ensis sustains annual revenue of 200 billion KRW while recording operating profit for three consecutive years. Despite this, the stock price remains around 0.6x PBR, receiving evaluations of significant discount relative to asset value and performance.
Industry observers view Jungwon Ensis as accelerating undervaluation resolution by combining asset revaluation with shareholder returns, as listed companies increasingly adopt treasury stock cancellation and value-up policies as core means of enhancing corporate value.
A Jungwon Ensis representative stated, "Starting with treasury stock acquisition and cancellation, we will demonstrate our commitment to responsible management to the market," adding, "We will review various measures to enhance shareholder value while strengthening communication with investors."
FAQ
What did Jungwon Ensis decide regarding treasury stocks on the 24th?
Jungwon Ensis resolved to purchase 1 billion KRW worth of treasury stocks on the market starting from the 27th for three months via NH Investment & Securities and cancel all acquired shares.
How much is the Sinsa-dong headquarters property estimated to be worth?
The company estimates the Sinsa-dong headquarters site value exceeds 500 billion KRW based on nearby transaction cases, which exceeds the current market capitalization.
What is Jungwon Ensis's recent financial performance?
Jungwon Ensis maintains annual revenue of 200 billion KRW and has recorded operating profit for three consecutive years, while the stock price remains around 0.6x PBR.
