South Korean semiconductor equipment manufacturer Jusung Engineering abandoned its stock-split plans, choosing instead to initiate a 50 billion won ($37 million) share buyback program to boost investor returns.
The company’s shift in strategy comes amid robust financial performance, with third-quarter operating profit soaring to 52.2 billion won from 690 million won a year earlier. Sales jumped more than eight-fold to 147.2 billion won, while operating margins expanded to 35.5%.
The decision to cancel the split reflects management’s priority to maintain cash reserves for technology investments and environmental initiatives, according to company officials. The share repurchase aims to stabilize the stock price and enhance shareholder value.
For the first nine months of 2024, Jusung reported sales of 301.1 billion won and operating profit of 95.3 billion won, representing year-over-year increases of 61.5% and 953.9% respectively.
The company’s focus remains on expanding its global presence in semiconductor and solar equipment markets across Asia, the Americas, and Europe through technological innovation.
