"KT&G, Domestic and Overseas Cigarette Growth... Shareholder Return Momentum Activated" [Click e-Stock]

On July 14, Daol Investment & Securities maintained its target price of 220,000 won and a 'Buy' investment rating for KT&G, stating that the company continues to deliver unwavering performance.

Dayeon Lee, a researcher at Daol Investment & Securities, said in a report released that day, "KT&G's consolidated revenue for the second quarter is estimated at 1.6878 trillion won, up 9.0% year-on-year, and operating profit is projected to be 396.4 billion won, up 13.3% from the same period last year."

In particular, the decline in total domestic cigarette demand is expected to slow, while KT&G's market share is projected to expand. Overseas cigarette sales are forecast to grow by 19.9% year-on-year.

KT&G is expected to announce a new dividend policy in the second half of the year, focusing on share buybacks, share cancellation, and enhanced dividends. In addition to the previously announced 300 billion won share buyback at the beginning of the year, further shareholder returns may be possible by utilizing the remaining funds from the liquidation of non-core assets. Furthermore, the company is largely unaffected by rising costs and fuel prices resulting from the Middle East conflict, so there is currently no significant uncertainty.

Researcher Lee added, "Overseas cigarette sales are expected to continue high single- to double-digit growth, and the company plans to sequentially launch next-generation tobacco (NGP) platforms overseas in the second half of the year. Entry into the NGP direct business is expected to further strengthen the company's performance momentum."

This content was produced with the assistance of AI translation services.