[Click eStock] "Refine Expected to Become a High Dividend Stock"

NH Investment & Securities stated on the 12th that Refine's stock price has fallen excessively after the change of the largest shareholder, and it is expected to become a high-dividend stock.

Refine announced on the 3rd that LS Securities and nine others, including the largest shareholder, will acquire a 34.05% stake. The purchase price per share was 27,159 KRW, which includes a 63.2% control premium over the closing price of 16,640 KRW on the 2nd.

Kang Kyung-geun, a researcher at NH Investment & Securities, explained, "After the announcement of the largest shareholder change, Refine's stock price fell by 27.9% due to momentum loss," adding, "The national jeonse price index rebounded from its low in August last year and recorded 90.4 at the end of November this year."

He continued, "Refine, as a monopolistic operator, recorded an average operating profit margin of 34.9% over four years," and added, "As of the end of the third quarter this year, it has a net cash position of 133 billion KRW, and stable free cash flow (FCF) of over 20 billion KRW annually is expected."

Researcher Kang analyzed, "There is a high possibility that the acquiring party will seek to recover their investment through a high-dividend policy," and "The current stock price appears to be in an excessively declining phase due to momentum loss." He advised, "This is an opportunity to purchase a high-dividend stock at a low price."

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