[Click e-Stock] "Samsung Card Aligns with Shareholder Return Concept... Target Price Raised"

On September 2, NH Investment & Securities raised its target price for Samsung Card from 54,000 won to 68,000 won. This was attributed to the company's recent emergence as a shareholder return-related stock and growing expectations for a recovery in its performance.

Yoon Yudong, a researcher at NH Investment & Securities, explained, "Samsung Card has recently emerged as a shareholder return-related stock, following amendments to the Commercial Act and the introduction of separate taxation on dividend income." He added, "The company has maintained a dividend payout ratio in the 40% range and has continued to either maintain or increase its annual dividend per share (DPS), despite fluctuations in performance."

He continued, "The market is also paying attention to whether the company will utilize its 7.9% stake in treasury shares." However, he added, "The company has not yet officially disclosed any shareholder value enhancement plans."

Samsung Card is also working to recover its performance. Yoon stated, "In July, the online shopping transaction amount grew by 7.3% year-on-year, marking a successful rebound compared to the 1.7% growth in the second quarter. This is presumed to be due to the use of consumer coupons." He further explained, "Although most of the usage was at small and medium-sized merchants in both the UK and China, resulting in lower commission rates, we believe the effect of stimulating consumption through increased liquidity is becoming visible, similar to when disaster relief funds were distributed in the past."

Yoon maintained a 'buy' investment opinion on Samsung Card. He said, "Although the unfavorable card industry environment continues, the company is actively expanding its individual credit sales and maintaining a higher level of performance compared to its peers." He added, "While our earnings estimates reflect stable growth in size, we have slightly lowered profit forecasts due to delayed improvement in asset quality. However, we expect a gradual improvement trend in the mid- to long-term."