Kolmar Holdings: Aggressive Plans to Cancel Outstanding Shares + Improving Returns to Shareholders

• On 26 June, Kolmar Holdings announced it plans to cancel 2.5 million treasury shares (6.7% of outstanding shares) as part of its participation in the corporate value-up program.

• Previously, Kolmar Holdings announced that it would return more than 50% of its net profit to shareholders in accordance with the shareholder return policy announced in July 2023.

• According to our NAV analysis, it suggests an implied NAV of 555 billion won or NAV per share of 15,088 won, which represents a 39% upside from current price.

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On 26 June, Kolmar Korea Holdings (024720 KS) (Kolmar Holdings) announced it plans to cancel 2.473 million treasury shares (representing 6.7% of outstanding shares) as part of its participation in the value-up program to improve corporate value.Kolmar Holdings currently has 36.77 million shares outstanding. Since the start of the voluntary Corporate Value Up program, Kolmar Holdings is the third Korean company to announce Value Up program in the past several weeks.

Previously, Kolmar Holdings announced that it would return more than 50% of its net profit (excluding non-recurring profits) to shareholders in accordance with the shareholder return policy announced in July 2023. The company also plans to use a certain percentage of non-recurring profits generated on share buybacks and cancellation, and quarterly dividends. The company also plans to include more foreigners and institutional investors to participate in the board of directors, and improve audit and internal transaction committees.

Kolmar Holdings NAV Analysis

According to our NAV analysis, it suggests an implied NAV of 555 billion won or NAV per share of 15,088 won, which represents a 39% upside from current price.