KT&G Investment Rating Raised with Strong Shareholder Return Policy

Business by 2FIRSTS.ai
Aug.09.2024
KT&G Investment Rating Raised with Strong Shareholder Return Policy
KT&G's shareholder-friendly policies lead to NH Securities maintaining "buy" rating with upgraded target price, citing strong performance outlook.

According to a report from South Korean Naver on August 9th, NH Investment & Securities maintained a "buy" rating on KT&G based on the company's active shareholder return policy. They raised the target price from 110,000 Korean won (approximately 576 yuan) to 120,000 Korean won (approximately 628 yuan), an increase of 9.09%. Analyst Ju Young-hoon explained that KT&G announced plans to buy back subsidiary stocks in the second half of the year (3.61 million shares, worth 337.2 billion Korean won, approximately 1.766 billion yuan) based on a long-term (2024-2026) shareholder return plan released at the end of last year, with the intention to immediately destroy these stocks after the acquisition is completed. He also added that KT&G is currently implementing the highest level of shareholder return policy in the country and plans to announce a new Value-up plan in the second half of the year. He predicted that in a volatile stock market, stable performance and increased shareholder returns will enhance the attractiveness of KT&G as an investment.


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