[Edaily Reporter Shin Ha-yeon] #Samjin L&D, a manufacturer of core components for power and industrial infrastructure, is moving to enhance shareholder value by pursuing a share buyback.

Samjin L&D announced on the 10th that it has signed a trust agreement with Samsung Securities to acquire 846 million won worth of its own shares. The contract period runs from the 11th to December 10, and the planned acquisition volume is 1 million common shares. This represents approximately 4% of the total number of listed shares (24,959,232 shares).

The company explained that it decided to proceed with this share buyback to stabilize the stock price, enhance shareholder value, and secure funds for employee performance rewards. The company noted that since the volume acquired represents about 4% of the total listed shares, this move is viewed as a substantive shareholder return policy.

Previously, at this year’s annual general meeting of shareholders, the company secured approximately 46.8 billion won in funds by passing resolutions to reduce capital reserves, profit reserves, and discretionary reserves, and to transfer funds to retained earnings. This has allowed the company to cover its accumulated deficit and lay the groundwork for various shareholder return policies, such as future dividends and share buybacks.

Management’s commitment to responsible leadership continues. CEO Lee Myung-jong purchased 334,546 shares on the open market between November 2024 and February of this year, while Executive Vice President Kim Jin-bo also bought 61,000 shares between February and March of this year. The company explained that it is striving to enhance market confidence by following up on the continuous open-market purchases by key executives with the acquisition of treasury shares.

Financial performance is also showing signs of improvement. Samjin L&D successfully returned to profitability in the first quarter of this year, recording consolidated revenue of 35.89 billion won, operating profit of 680 million won, and net income of 3.85 billion won. Gross profit reached 4.12 billion won, a 190.5% increase year-over-year, and the gross profit margin improved from 3.6% to 11.5%. Selling, general, and administrative expenses also decreased by 22.4%, indicating a shift toward a more profit-focused business structure.

The company is also advancing the optimization of its business portfolio. It is strengthening its competitiveness primarily through its ESS and UPS component business and its office automation (OA) and commercial printing press business; as of the first quarter, the component business accounted for 55.3% of total revenue. While expanding the supply of components for ESS and UPS systems, the company has also commenced full-scale mass production for new commercial printing press projects.

A company official stated, “This share buyback is a practical measure to enhance shareholder value and strengthen responsible management,” adding, “Building on our return to profitability and improved earnings in the first quarter, we will continue our efforts to boost business competitiveness while reinforcing the trust of the market and our shareholders.”