"K-Pop, K-Beauty... Now 'K-Tobacco': KT&G Sees Earnings and Per-Share Value Rise" [Click e-Stock]

On April 22, Yuanta Securities raised its target price for KT&G from 200,000 won to 210,000 won, reflecting revised earnings forecasts. The investment opinion remains at 'Buy.'

Hyunjeong Son, a researcher at Yuanta Securities, stated in a report on this day, "Despite the first quarter being a traditionally slow season, both revenue and profit are expected to significantly exceed expectations," adding, "We anticipate that the company will demonstrate both strong overseas tobacco demand and stability in its business structure."

For the first quarter of this year, KT&G's sales are projected to reach 1.7059 trillion won, up 14.4% year-on-year, with operating profit expected to increase by 23.1% to 351.6 billion won. Tobacco sales are forecast at 1.171 trillion won, with operating profit of 306 billion won, expected to drive the company's overall performance. The health and functional food segment is seen as entering a phase where profit contribution expands again, reflecting domestic recovery and cost efficiency improvements.

KT&G has decided to cancel all of its treasury shares, amounting to approximately 1.85 trillion won. This is expected to serve as a factor in increasing per-share value, separate from the company's earnings.

Researcher Son commented, "With profit quality improving on the back of overseas cigarette-driven growth, the company has entered a phase where valuation can be assessed with a focus on per-share value," adding, "There is potential for a re-rating of its valuation."

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