Megastudy Education: A Major Shareholder Return Policy in 2024-2026

• On 16 April, Megastudyedu Co, Ltd. (215200 KS) announced a major shareholder return plan, driving up its share price by 14.2% to 60,400 won.

• Driven by this attractive shareholder return plan combined with improving fundamentals, we believe that Megastudy Education's shares could continue to outperform the market in the next several months.

• The total shareholder returns including share buybacks/cancellation and dividends are 60% of the company's non-consolidated net profit from 2024 to 2026.

On 16 April, Megastudyedu Co, Ltd. (215200 KS) announced a major shareholder return plan, driving up its share price by 14.2% to 60,400 won. Megastudy Education currently has a market cap of 709 billion won ($506 million).

Driven by this attractive shareholder return plan combined with improving fundamentals, we believe that Megastudy Education's shares could continue to outperform the market in the next several months.

The total shareholder returns including share buybacks/cancellation and dividends are 60% of the company's non-consolidated net profit from 2024 to 2026. The company's new shareholder return policies including share buybacks/cancellations and dividends are nearly double the company's shareholder returns in the past three years.

The total estimated amount of the shareholder returns is about 160 billion won based on last year's net profit level but it could change depending upon the overall net profits in the next three years.

Company Background - Megastudyedu Co, Ltd. (215200 KS) provides online and offline educational programs to mostly middle and high school students. It offers university entrance test preparatory courses, e-learning, and university admission advisory services.