◆Aju Economic Major News
▷KOSDAQ firms facing delisting can transition to KONEX under new government plan
- The government has established a pathway allowing KOSDAQ companies at risk of delisting due to a market capitalization below 20 billion won to transition to KONEX if they meet certain financial criteria.
- As of August 26, among the 97 KOSDAQ companies with a market cap under 20 billion won, 43 (44.3%) are estimated to qualify for this benefit by meeting requirements such as reporting operating profit.
- Many of the targeted companies have recorded operating profits for more than two years in the past three years, highlighting the intent of the system to rescue firms facing delisting solely due to market cap issues.
- However, concerns have been raised about the effectiveness of KONEX, which has only 109 listed companies and an average daily trading volume of about 1.2 billion won, indicating limited liquidity and fundraising capabilities.
- The securities industry has pointed out that simply providing a transition option for delisted companies is insufficient, and additional measures are needed to enhance trading activity on KONEX and broaden the investor base.
◆Major Reports
▷Samsung Electronics and SK Hynix: The Power of Shareholder Returns [Shinhan Investment Corp]
- Shareholder returns varied in impact based on method and industry, with financial stocks showing total shareholder returns and non-financial stocks benefiting more from share buybacks.
- Samsung Electronics is pursuing a shareholder return plan focused on cash dividends amounting to 90 trillion to 110 trillion won, while SK Hynix is detailing a share buyback and cancellation plan exceeding 40 trillion won.
- Share buybacks by non-financial companies have shown greater defensive effects in downturns compared to upturns, with the top buyback companies outperforming in bear markets by an average of 0.16 percentage points.
- Notably, the buyback effect is more pronounced for companies with rising EPS, with those improving their performance showing an average outperformance of 1.68 percentage points.
- While the profit levels of Samsung Electronics and SK Hynix remain robust, the pace of EPS growth is slowing, suggesting that shareholder returns may support stock price stability, with future upside potential dependent on sustained earnings.
◆Key Disclosures After Market Close (September 8)
▷Semifive to supply AI inference accelerators for data centers to HyperExcel
▷The Codi decides to issue convertible bonds worth 30 billion won
▷NH Investment & Securities begins subscription for government bonds dedicated to DC and IRP individual investors
◆Fund Trends (as of September 7, excluding ETFs)
▷Domestic equity: -48 billion won
▷Overseas equity: -6.4 billion won
◆Key Schedule for Today (September 9)
▷South Korea: Unemployment rate (August)
▷China: Consumer Price Index (August), Producer Price Index (August)
* This article has been translated by AI.
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