TYM plans $6.8M buyback after profit jumps 125%
What's the deal? South Korean agricultural machinery maker TYMDealroom has a profile for this one. Try Dealroom → will buy back roughly US$8.38M of its own shares to boost shareholder value. Its board approved the purchase of 1,538,461 shares on November 11, with buying running from November 12 to February 11.
Why now? The move follows a sharp earnings rebound. Third-quarter revenue rose 16% year on year to US$218.1M, while operating profit jumped 124.7% to US$30M.
Over the first three quarters, revenue reached US$681M and operating profit hit US$82.5M, up 14% and 78% respectively. Net profit surged 125.2% to US$64.4M, driven by new strategic models in North America and stronger sales of medium-to-large tractors.
What's the endgame? TYM has leaned on buybacks, cancellations, and dividends to return capital. It began purchasing its own shares in 2019 and canceled 3,659,506 shares — about 8.1% of total issued stock, worth around US$18.4M — in November last year.
Dividends are rising too. TYM set an interim dividend of US$0.1 per common share this year, a 2.4-fold increase from last year's US$0.04.
What could go wrong? The buyback is calculated on the US$5.45 closing price the day before the board vote, but the final count and amount may shift with market prices. TYM says it will hold the shares for at least six months rather than cancel them immediately.
The signal: "This share acquisition is part of our efforts to share the company's growth achievements with shareholders," a TYM official said. The buyback — about 3.7% of market capitalization at the reference price — extends a steady shareholder-return push as the company's North American bet pays off.
Read more: chosun.com
Image credit: UnitedSoybeanBoard