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JONBUR Research · Update note

Mcnex · 097520 · Electronics

Mcnex Decides to Cancel 901,500 Treasury Shares, Cutting Issued Shares by 5.2%

Why this report

Written after:

Mcnex's board decided on Oct 21, 2026 to cancel 901,500 treasury shares, about 5.2% of issued shares, with cancellation planned for Oct 30. This reduces the share count but does not change the earnings picture in the previous report, and the model estimate base case now sits above the share price.

Written Oct 26, 2026 · Data as of Oct 23, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

On Oct 21, 2026 the board resolved to cancel 901,500 common shares already held as treasury stock. Issued shares are 17,401,500 before cancellation and are expected to fall to 16,500,000 afterwards. The planned cancellation date is Oct 30, 2026 and may change after consultation with the relevant agencies.

The filing puts the cancellation amount at ₩16.1B. This is the share count multiplied by the Oct 20 close of ₩17,820, so it is a reference figure and not necessarily what the company paid. The cancellation uses retained earnings available for dividends, reduces only the number of shares, and leaves share capital unchanged. Face value is ₩500 per share. A news report on Oct 21 put the treasury shares to be retired over two years at ₩33.1B, a figure that is not in the filing. The filing is 5.2% of market value by our measure.

What it changes for the thesis

The previous report described a large-revenue, low-margin business with falling profitability, little debt and repeated buyback activity, where the amounts were not in the data. This filing adds a concrete step: shares already bought back are being cancelled, so the buybacks are reducing the share count and not just sitting as treasury stock. That supports the point that the company is acting on its share count.

It does not change the weaker side of the thesis. Trailing operating margin is 2.4% against 4.1% in 2025, foreign ownership has slipped from 13.9% to 12.6% over 60 days, and the indictment headline from Oct 19 remains unresolved. Cancellation does not address any of these.

What it changes for the valuation

The previous report had no model estimate. The model now gives a range of ₩1,763 (bear), ₩21,730 (base) and ₩58,486 (bull) per share, from a discounted cash flow at a 7.3% rate based on trailing results to the first half of 2026. This is a model estimate based on the assumptions shown, not a price target. The share price is ₩17,650, below the base case and well inside a very wide range. That width shows how sensitive the result is to the assumptions, so the base case should be read with caution.

Fewer shares mean each remaining share represents a larger part of the company's earnings and assets, all else equal. Market capitalization is ₩307.1B, and trailing P/E is 9.1x and P/B 0.8x. These multiples are based on the current share count and have not been adjusted for the cancellation. The 52-week range is ₩15,600 to ₩32,400.

Closing view

The evidence is still mixed. The cancellation is a clear, modest positive for per-share measures and shows follow-through on the buybacks, and the model's base case sits above the current price. But the bear-to-bull range is extremely wide, margins are thin, and the legal matter is unresolved. The cancellation reduces the share count without changing the underlying business. Upcoming earnings and any news on the indictment will matter more for the thesis than this step.

Model estimate of fair value

Bear
₩1,763
-92%
Base
₩21,730
+1%
Bull
₩58,486
+173%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 7.3%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 26, 2026Update noteBuyback / dividend / value-upMcnex Decides to Cancel 901,500 Treasury Shares, Cutting Issued Shares by 5.2%
  2. Oct 19, 2026InitiationStart of coverage (reader request)Mcnex: Thin Margins, Lower Share Price and Buybacks, with an Indictment Headline

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information