[Click eStock] "Redcap Tour, Expectation of Dividend Increase"

Hana Securities analyzed on the 13th that the decline in market interest rates is creating a positive business environment for car rental companies. Redcap Tour is expected to see a significant reduction in financing costs during the interest rate decline period as most of its borrowings are linked to variable interest rates.

Handohyeon, a researcher at Hana Securities, explained, "At the end of Q3 this year, Redcap Tour's debt ratio was 230%, indicating sufficient growth potential through additional borrowing."

In Q3, the company recorded sales of 83.1 billion KRW and an operating profit of 10 billion KRW. Sales decreased by 1% compared to the same period last year, but operating profit increased by 2%.

Researcher An said, "Redcap Tour plans to cancel treasury shares and conduct a 1-for-1 stock dividend," adding, "they expect to increase the circulating shares to activate trading." He continued, "Through an extraordinary general meeting of shareholders, they will promote the conversion of capital reserves into retained earnings," and "this can secure 48 billion KRW as a tax-exempt dividend source."

He analyzed, "Last year's dividend was 900 KRW per share," and "this year's dividend is expected to be at least 1,000 KRW per share as additional dividend resources have been secured." Furthermore, he judged that "the expectation of dividend expansion based on solid performance has not yet been fully reflected in the stock price."