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Youngone Trading |
[Alpha Biz= Reporter Kim Minyoung] Youngwon Trading is set to acquire treasury stocks worth KRW 50 billion. It is the first time in more than seven years that Youngwon Trading Co. has bought back its shares since January 2017.
On the stock market on the 11th, Youngwon Trading rose 2,700 won (8.31%) to 35,200 won. At one point in the day, the growth rate soared to 13.23%.
The sharp rise in stock prices is due to the disclosure of treasury stock acquisition the previous day. On the same day, Youngwon Trading announced that it signed a trust contract worth 50 billion won with Shinhan Investment & Securities to enhance shareholder value after the market closed.
Shares of Youngwon Trading had been on a serious decline until the announcement of the treasury stock acquisition contract. The closing price of 32,500 won on the 10th was the lowest level in three years and four months since February 2021. While the global clothing market is suffering from a slump, the performance of Scott, a Swiss-based bicycle company acquired in 2015, has also deteriorated significantly. Youngwon Trading's first-quarter sales and operating profit fell 15.6 percent and 57.5 percent, respectively, from a year earlier. Scott's sales fell 35 percent over the same period and posted operating losses of 16.1 billion won.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
