[Featured Stock] KT&G Hits 52-Week High... Earnings Surprise and Share Buyback Highlighted

Earnings Surprise and Shareholder Return Appeal Highlighted
Overseas Cigarette Business Drives Performance with Sharp Sales and Profit Growth
Interim Dividend and Share Buyback Announcement Raise Shareholder Value Expectations

KT&G has reached a 52-week high. Following the Q2 earnings announcement, it appears that the company not only delivered an earnings surprise but also highlighted its appeal as a dividend stock with strong shareholder returns.

As of 9:22 AM on the 9th, KT&G was trading at 98,100 KRW, up 3.48% (3,300 KRW) from the previous day. This surpassed the 52-week high of 96,000 KRW recorded in March. The 100,000 KRW mark, which has not been reached even once since 2023, is now within close reach.

KT&G announced its Q2 earnings on the 8th. On a consolidated basis, sales were 1.4238 trillion KRW, and operating profit was 321.5 billion KRW. These represent increases of 6.6% and 30.6%, respectively, compared to the same period last year. The market consensus for operating profit was around 270 billion KRW. Notably, sales from the overseas cigarette business, one of the three core businesses, grew by 35.3% to 359.1 billion KRW during the same period, driving overall sales growth. Operating profit from overseas cigarettes also surged by 139.1%. KT&G also decided on an interim dividend of 1,200 KRW per share and announced a plan to repurchase 3.61 million shares starting from the 9th, amounting to approximately 350 billion KRW.

Younghoon Joo, a researcher at NH Investment & Securities, stated, "Although KT&G is currently regarded as having one of the best shareholder return policies in the domestic market, it announced plans to unveil new corporate value enhancement (value-up) initiatives in the second half of the year." He added, "In a market environment with increased volatility, the combination of earnings stability and expanded shareholder returns will enhance KT&G's investment appeal."