[Click eStock] "Hanwha Life, Likely to Strengthen Shareholder Returns... Target Price Up"

Shinhan Investment Corp. raised the target price for Hanwha Life to 4,000 KRW on the 22nd, stating that it is expected to strengthen its shareholder return policy in line with the shareholder-friendly encouragement trend such as the value-up program. The investment opinion was maintained as 'Buy.'

Operating profit for the fourth quarter turned positive to 77.7 billion KRW compared to the previous quarter. Net profit also turned positive to 38.4 billion KRW. This fell short of Shinhan Investment Corp.'s estimate (net profit of 123.3 billion KRW).

Senior researcher Im Hee-yeon explained, "A one-time factor caused about 120 billion KRW in loss contract burden costs due to changes in pension actuarial assumptions and a reduction in policy loan interest rates," adding, "An 80 billion KRW valuation loss on overseas alternative investments was also recognized."

Senior researcher Im forecasted, "Operating profit this year is expected to increase by 20.9% year-on-year to 896.2 billion KRW, and net profit is expected to rise by 6.9% to 658.7 billion KRW," further stating, "Assuming no large one-time CSM adjustments and loss contract burden costs this year, year-end CSM is expected to be 10.6 trillion KRW, and insurance profit is expected to be 765.2 billion KRW."

He also said, "Although there is no fixed mid- to long-term dividend plan, it is expected to strengthen shareholder return policies in line with the shareholder-friendly encouragement trend such as the value-up program," adding, "In the past, the separate basis dividend payout ratio was 20%, but going forward, the dividend payout ratio will be set including Hanwha Life Financial Services (when it turns profitable) and overseas subsidiaries' profits and losses."