Daishin Securities Enhances Shareholder Value through Share Cancellation and Redemption of Convertible Preferred Shares, Maintains AA- Credit Rating and Discloses ELB Issuance
Daishin Securities has issued the 1126th and 1127th Equity-Linked Bonds ELB offering a maturity yield of 3.8% per annum with underlying assets being Samsung Electronics common stock with volatilities of 88% and 81% respectively.
The issuer credit rating remains AA- from Korea Ratings, NICE Investors Service, and HanKook KPMG, reflecting stable financial health.
Total VaR at period-end is 32.3 billion KRW comprising interest rate risk of 6.2 billion, equity price risk of 30.6 billion, and foreign exchange risk of 2.3 billion won while the liquidity ratio stands at 145.05%.
Net income reached 474.1 billion won and operating profit 415.5 billion won with a common stock dividend of 1,200 won per share. The company completed the cancellation of 1,553,637 treasury shares and redemption of 2,091,253 convertible preferred shares, enhancing shareholder value.
Outstanding derivatives notional amount is approximately 86 trillion won and foreign currency liabilities exceed assets, requiring careful foreign exchange risk management.
[AI Summary]Daishin Securities is executing an active shareholder return policy through share cancellation and preferred share redemption. With a strong AA- credit rating, the company can issue ELBs for stable funding. However, the large derivatives notional and foreign currency liability exposure necessitate vigilant risk monitoring amidst market volatility. Overall, positive factors for stock price prevail but certain financial risks require attention.