In today’s briefing:
- Identifying KOSPI Size Migration Candidates & Assessing Proactive Setup Feasibility
- 2024 High Conviction: [KT&G – Likely To Announce Cigarette Price Hikes in 2H24]
Identifying KOSPI Size Migration Candidates & Assessing Proactive Setup Feasibility
- EcoPro Materials and Doosan Robotics, recent IPOs, join the Large category. Their inclusion signals at least two Large stocks, CS Wind Corp and BGF Retail, shifting to Mid.
- There’s a chance three Mid-stocks will transition to Large: Ssangyong Cement, Hyundai Electric, and LOTTE Corp. Conversely, LS Corp, Hotel Shilla, and Kepco E&C will move from Large to Mid.
- With ample time left in the screening period, cautious monitoring is essential. Still, Large→Mid candidates, with a notable gap from the ₩2.95T cutoff, warrant a focus on proactive setups.
2024 High Conviction: [KT&G – Likely To Announce Cigarette Price Hikes in 2H24]
- KT&G is a high conviction pick in 2024.We believe KT&G Corporation (033780 KS) is likely to announce cigarette price hikes in 2H 2024.
- Three major reasons include a) no cigarette price hikes in nearly 9 years, b) Korean legislative election will be in April 2024, and c) reduce government tax revenue shortfall.
- We believe that the Korean government could raise cigarette prices to about 7,000 won to 8,000 won per pack from current price of 4,500 won.
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