In today’s briefing:
- Local Market Observations on Timing Samsung Electronics 1P Discount Narrowing
- KT&G: A Strong Candidate for Outperformance Amid Increased Signs of Market Fears
Local Market Observations on Timing Samsung Electronics 1P Discount Narrowing
- Local traders see interest rate cuts and value-up disclosures as key for timing Samsung Electronics 1P discount narrowing.
- Samsung’s only realistic value-up goal beyond 50% FCF return is improving ROE, likely through a pref-skewed buyback or cancellation program.
- If Samsung announces a value-up plan during the Bank of Korea’s rate cuts, local traders expect the 1P discount to reverse, targeting October-November for position entry.
KT&G: A Strong Candidate for Outperformance Amid Increased Signs of Market Fears
- In this insight, we provide an update of KT&G Corporation (033780 KS) which is a strong candidate for outperformance amid increased signs of market fears.
- We continue to believe that there is an increasing probability of cigarette price hikes in Korea in 2H24. Last time that KT&G hiked its cigarette prices was in January 2015.
- The company’s shareholder return policy is to provide cash dividends of 1.8 trillion won and share buyback/cancellations worth 1 trillion won from 2024 to 2026.
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