[Click eStock] "Hanwha Life, Gradual Expansion of Shareholder Returns Expected... Target Price Up"

Target Price Revised Upward from 3,300 Won to 4,000 Won

NH Investment & Securities raised the target price for Hanwha Life from 3,300 KRW to 4,000 KRW on the 22nd, anticipating a gradual expansion of shareholder returns. The investment rating was maintained at 'Buy.'

Jung Joon-seop, a researcher at NH Investment & Securities, explained, "The target price increase reflects the possibility of expanded shareholder returns in the new capital policy to be announced later," adding, "This is because the discount rate was reduced from the previous 60% to 50%."

Hanwha Life did not announce any dividend or future shareholder return plans during the conference call the previous day. The company stated that if a corporate value-up program is announced like its competitors, it will consider it and specify its capital policy accordingly. Researcher Jung said, "Hanwha Life's new solvency ratio (K-ICS) at the end of last year was 183%, within the company's management target range (170-190%), so while dividend resumption is possible, considering Hanwha Life's high interest rate sensitivity, shareholder returns are expected to gradually expand rather than change significantly for the time being." He added, "In the shareholder return policy to be announced later, dividends are unlikely to exceed past tendencies (20% before 2019), but it is possible to partially retire treasury shares held (13.5%)."

Hanwha Life's standalone net profit for the fourth quarter of last year was 38.4 billion KRW, falling short of market consensus (average securities firm forecast). Researcher Jung analyzed, "Due to actuarial assumption adjustments in the fourth quarter, loss contract costs of 118.2 billion KRW occurred, and the investment division recorded an alternative investment valuation loss of 35 billion KRW."