- KT&G’s operating profit for the first quarter was reported at 236.57 billion won, which is a 25% decrease from the previous year.
- The estimated operating profit was 287.33 billion won, which was not achieved.
- The company’s net profit stood at 285.22 billion won, an increase of 5.4% from the previous year.
- This net profit slightly exceeded expectations as the estimated value was 236.37 billion won.
- KT&G’s sales were also on a decline, with the reported figure being 1.29 trillion won, a 7.4% decrease year-over-year.
- The estimated sales were 1.38 trillion won, which was also not met.
- On the brighter side, KT&G received 20 buy ratings, 3 hold ratings and no sell ratings.
- Please note, these comparisons to past results are based only on the values KT&G has reported in their original disclosures.
KT&G Corporation on Smartkarma
Analyst coverage of KT&G Corporation on Smartkarma by Douglas Kim has shed light on key developments impacting the company. In a report titled “A First Major Class Action Lawsuit Against KT&G’s Directors by FCP + KT&G’s Results Analysis in 2023,” Kim highlighted a class action lawsuit against KT&G’s directors by Flashlight Capital Partners. Despite this, Kim remains optimistic, indicating a potential for cigarette price hikes in the latter half of 2024, which could positively influence the company’s performance.
In another report titled “KT&G: A New Shareholder Return Policy Worth 2.8 Trillion Won Over Next 3 Years,” Douglas Kim discusses KT&G’s announcement of a significant shareholder return policy amounting to 2.8 trillion won over the next three years. This policy includes dividend payouts and treasury share purchases/cancellations. Kim’s bullish sentiment suggests positive prospects for KT&G amidst these strategic financial decisions.
A look at KT&G Corporation Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
KT&G Corporation, a company known for processing, producing, and selling cigarettes and tobacco products, seems to have a promising long-term outlook based on the Smartkarma Smart Scores. With a strong score of 5 in the Dividend category, investors can potentially benefit from consistent and attractive dividend payouts. Additionally, the company shows resilience with a score of 4, indicating its capability to navigate challenges and maintain stability. Momentum and Growth scores of 4 and 3, respectively, suggest that KT&G is progressing steadily in the market. Although the Value score is more moderate at 3, the overall outlook appears positive for KT&G Corporation.
Moreover, apart from its core tobacco business, KT&G also diversifies into the production of ginseng products and herbal medicines through its subsidiaries. The company further engages in real estate development activities, particularly focusing on redeveloping its former factory sites. This multi-faceted approach could contribute to the company’s long-term success and sustainability in various industries. With the combination of strong dividend performance, resilience, momentum, growth, and diverse business interests, KT&G Corporation appears to be positioned well for future growth and value creation.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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