1. What Happened? : Kolmar Holdings Announces 0.3% Dividend

Kolmar Holdings announced a cash dividend of 50 KRW per share on July 31, 2025. This translates to a yield of just 0.3% based on the current stock price, falling short of market expectations.

2. Why This Decision? : Weak Q1 Performance and Unstable Market Conditions

  • Weak Performance: Key subsidiaries like Kolmar BNH and Kolmar Korea reported disappointing Q1 results. Factors contributing to this include increased sales of low-priced products, a decline in average selling prices, and rising raw material costs.
  • Unstable Market Conditions: External factors such as increasing exchange rate volatility, rising interest rates, surging raw material prices, and a slowdown in the Chinese economy are also negatively impacting Kolmar Holdings.

3. What’s Next? : Future Outlook and Investment Strategies

The low dividend yield is unlikely to have a significant short-term impact on the stock price. However, the company’s performance in Q2 and beyond, the sustainability of its dividend policy, and shifts in the market environment will be crucial factors in the long run. Investors should carefully consider the following:

  • Potential for Performance Improvement: Focus on whether the subsidiaries’ management improvement and new business strategies can lead to a turnaround in performance.
  • Dividend Sustainability: Consider the possibility of dividend cuts if future performance deteriorates.
  • Competitor Analysis: Compare Kolmar Holdings’ dividend policy and performance with its competitors to assess its investment attractiveness.

4. What Should Investors Do? : Careful Investment Decisions Are Crucial

Before making any investment decisions, it’s vital to closely monitor Kolmar Holdings’ performance after Q2, as well as any changes in market conditions. Consult with financial experts and conduct thorough research to make informed and prudent investment choices.