KT&G Strengthens Shareholder Returns with Higher Stock Price

Market by 2FIRSTS.ai
KT&G Strengthens Shareholder Returns with Higher Stock Price
KT&G strengthens shareholder returns, raising stock target price to 107,000 KRW, with Q3 sales expected to increase.

According to a report on October 17th by South Korean newspaper MT, KT&G is set to enhance its shareholder return policy by increasing its target stock price from the current 100,000 Korean won to 107,000 Korean won.


According to IBK Securities, KT&G is expected to achieve sales revenue of KRW 162.92 trillion and an operating profit of KRW 351.9 billion in the third quarter, representing a year-on-year increase of 0.3% and 13.2% respectively. However, it is anticipated that the sales revenue and operating profit of its cigarette business will decrease by 4.7% and 14% respectively, to KRW 89.94 trillion and KRW 23.03 trillion.


Researcher Kim Tae-hyun stated, "Despite possible fluctuations in performance in the fourth quarter, the market has shown higher appreciation for the introduction of a semi-annual dividend and the implementation of shareholder return policies such as purchasing and cancelling treasury stocks.


He further predicted, 'With the year-end approaching, a 6% dividend yield and expectations for next year's performance are projected to fuel the continuing rise in stock prices."


Furthermore, KT&G's heat-not-burn product "Lil" has been introduced in 31 countries worldwide. The company is expected to strengthen its global business capabilities by expanding its overseas factories in Kazakhstan.


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