DEEP RESEARCH · INBODY
[InBody] Additional Treasury Share Purchase Disclosure
A shareholder note on buybacks, cancellation capacity, new-business investment risk, and KORT's prospects
0. Bottom line first
The company is acting as if it believes its own shares are cheap. I also thought so and bought more, but in the short term there are risks from investment in new items, including pressure on operating margin and even declining operating profit. The buyback is positive, but I still need more evidence that cash flow can support a similar level of annual cancellation.
Additional buyback
I read this as the company acting as if it believes its own shares are cheap.
Cancellation durability
I still need more evidence that KRW 10 billion of annual cancellation can be sustained.
KORT watchpoint
Quarterly revenue is still only tens of millions of won, but I personally put the success probability around 70%.
1. Meaning of the buyback and cancellation
Official fact: After the treasury share purchase and cancellation, an additional purchase disclosure came out.
Interpretation: The company is acting as if it thinks its shares are cheap. However, a treasury-share cancellation disclosure requires stronger confidence in cash flow. It seems the company judged that cancelling KRW 10 billion of treasury shares per year is still difficult.
From a shareholder-return-ratio perspective, once cancellation begins, the company should be able to judge that a similar annual level can be sustained. I will look for larger cancellation later as the company grows.
2. Short-term risk: new-business investment and margin decline
Interpretation: The company still has near-term risks. Operating margin and even operating profit are declining because of investment in new items.
The stock also fell sharply recently as the market reflected possible margin pressure if Trump imposes a universal 10% tariff.
3. View on the KORT blood pressure monitor
Official fact: KORT revenue is still very early, at only tens of millions of won per quarter.
Interpretation: The company seems somewhat confident in the success of new items. The additional treasury-share purchase gives that impression. I am watching what happens after the 1,000 KORT units mentioned at the shareholder meeting, and after reading reviews of the KORT blood pressure monitor, some of my doubts about whether this new KORT method is needed have been resolved. Personally, I see the chance of success at around 70% and bought a little more.
4. Shareholder right to ask questions
A quarterly report is a report to shareholders, the owners of the company. Therefore, as a shareholder, asking questions and giving feedback about it should be natural for the company as well. However, I have not yet received a reply.
Please use this only as a reference for work.
Sources
- Naver Blog original: https://m.blog.naver.com/PostView.naver?blogId=star_of_self&logNo=223665154423