[Featured Stock] "Strong Earnings and Generous Dividends"... Easy Holdings Jumps 29%

Easy Holdings' share price surged nearly 29% on news of an expanded dividend.

As of 9:20 a.m. on the 23rd, Easy Holdings shares were trading at 7,720 won, up 29.97% (1,780 won) from the previous trading day.

On this day, Shinhan Investment & Securities maintained its "Buy" investment rating on Easy Holdings and raised its target price by 13% from the previous level to 6,800 won.

Shinhan Investment & Securities researchers Kim Taehun and Choi Seunghwan said, "The strengthened shareholder returns through the reduced-tax dividend and the commitment to pay dividends at a payout ratio of around 40% on a separate basis going forward are sufficient to raise the valuation target," adding, "This year, revenue and operating profit are expected to be 3.5 trillion won and 199.2 billion won, respectively, indicating strong results. Although there is a burden in terms of net asset value, increasing dividends from subsidiaries such as Farmstory are likely to create a virtuous cycle of share price appreciation."

They continued, "Easy Holdings has announced that the record date for the dividend is March 10, and shareholders who hold the stock through the close of trading on March 6 will receive a dividend of 1,361 won per share," and added, "Based on the closing price on the 20th, the dividend yield was 22.9%, and because this dividend is a reduced-tax dividend, it is tax-exempt, effectively equivalent to a 27% yield on a regular dividend."

They further stated, "The dividend alone amounts to 87.8 billion won, a one-off payout that fully utilizes the reduced-tax dividend pool, and dividends exceeding a 40% payout ratio on a separate basis are expected going forward," adding, "Per-share dividends have also been on an upward trend every year, from 50 won in 2021 to 75 won in 2022, 120 won in 2023, 250 won in 2024, and 1,361 won last year."

Strong earnings are also anticipated. They said, "Last year's revenue is projected to have risen 4.2% year-on-year to 3.4 trillion won, and operating profit to have increased 35% year-on-year to 166.5 billion won, marking the highest performance since the company's establishment," adding, "Domestic pork prices remained high, up 9.1% year-on-year, while prices of major feed raw materials such as corn and soybean meal stabilized at lower levels, and these improved results are translating into enhanced shareholder returns."