KT&G (Korea Ative Reju) has recently seen a sharp rise in overseas sales, prompting a reevaluation of its corporate value. Alongside the increase in revenue that surpasses domestic and international trends, its relatively lower price compared to global competitors is drawing positive assessment among investors.
The first evidence is the projected growth in actual performance. KT&G expects its third‑quarter operating profit for this year to average 4,965 million won (about 49.65 billion won), a 6.7% increase over the same period last year. This figure suggests that the company could achieve record performance on a quarterly basis.
The second evidence is the foundation for a stock price rise. KT&G’s expansion of overseas sales has brought about a lower valuation compared to global peers, which leads investors to judge the firm as having long‑term growth momentum and hence expect a rise in its share price.
The third evidence is the possibility of expanding shareholder return. KT&G recently announced plans to adjust its capital structure and increase dividends. This strengthens its equity base while simultaneously providing earnings opportunities for investors, thereby further reinforcing corporate value.
Overall, KT&G’s overseas sales growth and expected performance appear to have a positive effect on corporate value, leading to a rise in share price and increasing investor confidence. The content of this article is protected by copyright of the Korea Economic Newspaper.