[Click e-Stock] "GS, Solid Performance and High Dividends Expected to Remain Unaffected"

On September 29, KB Securities stated that all business divisions of GS are maintaining solid conditions, and projected that, following the improvement in the hotel sector in the first half of the year, refining results will also improve in the second half. The investment opinion remains 'Buy', with the target price maintained at 61,000 won.

GS's operating profit for the third quarter of this year is estimated at 717.2 billion won (up 14% year-on-year), slightly exceeding the market consensus of 674.3 billion won. GS Energy (operating profit of 468.7 billion won) is expected to see an increase of 125.2 billion won from the previous quarter due to the base effect from Caltex's second quarter results. Meanwhile, EPS/E&R (operating profit of 79.9 billion won) and Retail/P&L (operating profit of 119.5 billion won) are also projected to see profit improvements of around 20 billion won each, thanks to the peak season and the base effect of the comprehensive real estate holding tax in June.

KB Securities researcher Jeon Wooje commented, "We expect strong peak season results with no significant one-off losses," adding, "We anticipate a recovery in the share price alongside improved refining results in the second half of the year."

Jeon also noted, "GS's dividend policy is to return more than 40% of the average net profit over the past three years (excluding one-off non-operating gains)," and added, "Since the dividend payout from the favorable refining market in 2022 was included in GS's standalone results for 2023, it is highly likely that this year's dividend will also be maintained at 2,700 won (a dividend yield of 6.0%)." Over the past 20 years, GS has only reduced its dividend per share (DPS) twice (in 2008 and 2014).

Jeon explained, "GS, as a holding company with hotel assets, could be classified as a beneficiary of government policies in 2025," and continued, "GS P&L (which owns three five-star hotels and six three- to four-star hotels, with a total of 3,082 rooms) has seen its share price rise by 129% compared to the beginning of the year, mainly due to the increase in tourist numbers this year and the recent reopening of The Westin Seoul Parnas."

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