[Click eStock] "SNT Holdings Expected to Maintain Strong Earnings and Expand Shareholder Returns"

Target Price Raised to 90,000 Won
Strong Earnings Momentum and Enhanced Shareholder Returns Expected

On September 4, BNK Investment & Securities maintained its "Buy" investment rating on SNT Holdings, raising its target price to 90,000 won. The firm stated, "Strong earnings momentum and an expanding shareholder return policy are expected to continue."

According to BNK Investment & Securities, SNT Holdings' consolidated sales in the second quarter of this year increased by 27.7% compared to the same period last year, while operating profit decreased by 3.6%. The company's core subsidiary, SNT Energy, led the earnings improvement, with sales surging by 109.2% and operating profit soaring by 445.1%. SNT Energy's order backlog has grown significantly, from 350 billion won at the beginning of 2024 to approximately 800 billion won currently.

In contrast, SNT Dynamics saw a decline in operating profit compared to last year. However, considering the reversal of costs related to a 42.5 billion won damage claim lawsuit in the previous year, its actual business performance has improved. Kim Jangwon, a researcher at BNK Investment & Securities, forecasted, "The main business sectors are expected to remain strong in the second half of the year, and with a robust order backlog, the positive earnings trend should continue."

The shareholder return policy is also being strengthened. Last year, the company paid an annual dividend of 1,600 won, but this year, it introduced quarterly dividends for the first time, paying 500 won in the first quarter and 1,000 won in the second quarter. The dividend paid in the first half alone already matches last year's annual level. The dividend payout ratio jumped significantly from 58.6% in the first quarter to 74.6% in the second quarter. Kim expressed optimism, stating, "The strong performance of affiliates in the second half will further solidify the foundation for expanding shareholder returns."

He added, "Asset securitization using treasury shares and some affiliate stakes is being recognized as a source for creating growth value, rather than diluting per-share value, which has increased trust in the company's decision-making. The free float ratio is very low at about 15%, considering major shareholders and treasury shares, and as net asset value continues to rise, the stock is exhibiting 'scarcity stock' characteristics."

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