1. What is Namuga’s Share Buyback Plan?

Namuga plans to repurchase KRW 5 billion worth of its own shares through Samsung Securities from August 21, 2025, to February 20, 2026. The primary goals are to stabilize the stock price and enhance shareholder value.

2. Why is Namuga Repurchasing its Shares?

Share buybacks are generally implemented when a company believes its stock is undervalued, aiming to boost the stock price and restore investor confidence. Namuga likely believes the current stock price doesn’t accurately reflect the company’s intrinsic value. It can also be interpreted as a sign of confidence in their future growth drivers, such as the 3D camera module business.

3. How Will the Buyback Affect the Stock Price?

  • Short-term impact: The KRW 5 billion buyback will reduce the number of outstanding shares, potentially driving up the stock price. A positive impact on investor sentiment is also expected.
  • Long-term impact: The share buyback itself may have a temporary effect. For sustained stock price growth, improvements in fundamentals, such as the performance of the 3D camera module business and a reduction in dependence on major customers, are essential.

4. What Should Investors Do?

  • Short-term investors: An investment strategy leveraging the short-term stock price momentum can be considered. However, the extent and duration of the price increase might be limited.
  • Long-term investors: It’s important to continuously monitor improvements in fundamentals, such as the growth of the 3D camera module business and customer diversification strategies, and consider investment from a long-term perspective.