[Click eStock] "Samsung Life Insurance, Short-term Dividend Investors Leaving... Buying Opportunity"

Kiwoom Securities analyzed on the 9th that the short-term dividend investor outflow from Samsung Life Insurance is rather a good buying opportunity.

In a report released that day, Kiwoom Securities analyst Ahn Young-jun said, "The dividend yield based on the current stock price is 5.0%, which is at a historically high level, and it seems to be due to the short-term dividend investor outflow after the ex-dividend date," adding, "Historically, additional stock price adjustments after the ex-dividend date for insurance companies have been good buying opportunities, so the recent price decline should also be used as a buying opportunity."

Accordingly, he maintained a target price of 140,000 KRW and a buy rating, and continued to select Samsung Life Insurance as the top preferred stock within the sector.

He analyzed, "With strong new contract sales, it seems possible to maintain stable upward trends in earnings and capital ratios going forward, and the medium- to long-term shareholder return ratio target is set at 50% (35% in 2023), so the scale of shareholder returns is expected to steadily expand," adding, "Additionally, if the treasury shares held and Samsung Electronics shares are used for shareholder returns, it is expected to act as an additional valuation upside factor."

Samsung Life Insurance's controlling shareholder net profit for the fourth quarter of last year is expected to be 290.9 billion KRW, down 35% year-on-year, falling 11% short of the consensus of 328.5 billion KRW. Analyst Ahn Young-jun said, "Insurance profits are expected to be sluggish due to one-time costs reflecting annual assumption changes, but stable investment income is expected to offset this."

Although the fourth-quarter results are expected to fall short of market expectations, the annual controlling net profit is estimated to increase by 23% year-on-year to 2.33 trillion KRW. Analyst Ahn explained, "Assuming a dividend payout ratio of 37%, the expected dividend per share (DPS) is 4,800 KRW," and added, "Considering the solvency ratio (K-ICS) and surrender reserve, there should be no concerns about dividends."

The solvency ratio indicates an insurance company's ability to pay insurance claims to policyholders.

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