[Click e-Stock] "KT&G, Enhanced Shareholder Returns"

On September 24, Yuanta Securities raised its target price for KT&G to 200,000 won, reflecting enhanced shareholder returns and the incorporation of the new nicotine pouch business.

Son Hyunjung, a researcher at Yuanta Securities, stated, "KT&G initially announced a total shareholder return of 3.7 trillion won over three years from 2024 to 2027," adding, "The cumulative return for the two years of 2024 and 2025 has already exceeded 2.3 trillion won."

She continued, "The execution is progressing at a faster pace than planned," and added, "This year, the company has decided to raise the dividend per share (DPS) to at least 6,000 won." Additionally, she projected, "The total shareholder return ratio this year is expected to exceed 100%, and the dividend payout ratio will also rise to around 53%."

She emphasized, "Both the total return amount and the dividend payout ratio have improved compared to the previous year," and highlighted, "With the expansion of treasury share cancellation, the effect of enhancing shareholder value is clear."

KT&G is estimated to achieve consolidated sales of 6.5893 trillion won and operating profit of 1.3983 trillion won this year. These figures represent increases of 11.5% and 17.6%, respectively, compared to the previous year. Son analyzed, "The proportion of overseas tobacco is expected to exceed 50% in the medium term," and added, "Profitability is improving due to an increase in average selling price (ASP), expansion of premium products, and the transition to a global production system."

She explained, "KT&G is entering the nicotine pouch market," and added, "The company has signed a joint investment agreement with Altria, the number one tobacco company in the United States, and ASF, a Northern European nicotine pouch company, to acquire stakes."