AMOREPACIFIC Holdings Maintains 75% Payout Ratio, Cancels 6M Shares in Aggressive Shareholder Return... Accelerating Value-Up Plan
Achieved mid-term dividend policy target (50-75% of standalone net profit) at 75% for three consecutive years (2023-2025), with DPS rising from KRW 245 (2023) to 330 (2024) to 400 (2025), a 21% YoY increase.
Cancelled a total of 6,062,598 shares (6 million common shares and 62,598 preferred shares) across three transactions in 2025-2026, worth approximately KRW 162.6 billion, reducing outstanding shares by ~7.8%.
Approved a reduction of capital reserves at the March 2026 shareholder meeting to fund a 'reduction dividend' from 2027, which qualifies as a high-dividend company under tax law, offering separate taxation benefits for individual shareholders.
Governance improvements: Amended articles to prohibit exclusion of cumulative voting (effective Sep 2026), continued electronic voting and avoiding peak shareholder meeting dates, board composed of 4 outside directors out of 7, and active committees (audit, compensation, internal transactions, ESG).
[AI Comprehensive Analysis]The company is aggressively enhancing shareholder returns through dividend increases and substantial share buybacks/cancellations, alongside governance improvements. This value-up plan should positively impact the stock price. While the introduction of a reduction dividend may raise temporary concerns about capital erosion, the company's solid profitability and financial health mitigate such risks.