"DB Insurance Raises Dividend Level, Target Price Increased" [Click e-Stock]

Daol Investment & Securities Raises Target Price from 2,600,000 Won to 2,700,000 Won

On September 2, Daol Investment & Securities maintained its "Buy" rating for DB Insurance and raised its target price from 2,600,000 won to 2,700,000 won.

Ji Won Kim, a researcher at Daol Investment & Securities, stated, "DB Insurance's dividend level has increased and predictability has been secured."

DB Insurance announced a new corporate value enhancement plan on August 28. Kim highlighted the company's shareholder return policy as noteworthy among the details. The main points include raising the total shareholder return rate to 50% on a separate (individual financial statements) basis by 2030, implementing the shareholder return policy with a focus on cash dividends, and designating the solvency ratio (K-ICS) range as an indicator to assess the ability to carry out shareholder returns.

Kim positively evaluated the company's explicit intention and enhanced predictability regarding shareholder returns, particularly appreciating the steeper ramp-up of its dividend payout ratio target compared to the previous plan. Kim explained, "Under the original plan, it was assumed the payout ratio would increase by 2.5 percentage points each year through 2028. However, even with a higher base, the company raised its target even further." Kim also stated, "To reach the 2030 goal, the assumption now needs to be revised to a uniform annual increase of 4 percentage points." He added, "Given the increased stability of shareholder returns, a premium is warranted, leading to an upward revision of the appropriate price-to-book ratio (PBR) and target stock price."

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