[Click eStock] "Lotte Holdings, Dividend Stability Highlighted with Increased Dividend Yield... Target Price Up"

[Asia Economy Reporter Kwon Jae-hee] Daol Investment & Securities maintained a 'Buy' rating on Lotte Holdings on the 31st and raised the target price from the previous 42,000 KRW to 51,000 KRW.

Daol Investment & Securities cited Lotte Holdings as the stock with the most remarkable price increase within the industry in the first half of the year. In fact, the stock rose 44% from a low of 25,900 KRW on January 27 to 37,300 KRW on June 30. This was driven by the acquisition of Korea Ministop in February, followed by the establishment of 100% subsidiaries Lotte Healthcare and Lotte Biologics by May 13, marking the company's entry into the healthcare and CMO businesses.

Expectations for new businesses are also high. Lotte Healthcare announced plans to launch a healthcare commerce platform providing customized health management solutions in the first half of next year by integrating Theragen Bio's genomic testing services. Lotte Biologics is reportedly reviewing domestic land candidates for building a factory in Korea, with plans to invest up to 1 trillion KRW in this project alone. Additionally, there are ongoing expectations for new businesses across the group, including electric vehicle charging and UAM (Urban Air Mobility) in the mobility sector.

Dividend income has also increased. Based on a dividend per share (DPS) of 1,500 KRW, the total dividend payout amounts to 107.3 billion KRW, securing the capacity to pay a DPS of 1,500 KRW per share this year. This is interpreted as a result of increased dividend income from subsidiaries last year and the effect of this year's brand royalty rate hike.

Kim Han-i, a researcher at Daol Investment & Securities, evaluated, "Dividend stability is expected to become more prominent toward the end of the year as concerns over inflation and cost burdens grow. Dividend income inflow in the first quarter increased by 42% compared to the previous year, and the trademark royalty rate was also raised by 30% compared to last year, indicating stability despite concerns over reduced earnings from affiliates."

This content was produced with the assistance of AI translation services.