April 19, 2024
Stocks & Bonds
[EQUITIES] ‘Graphic warning labels to have limited effect on KT&G’
[THE INVESTOR] The mandatory graphic warning labels on cigarette packs will bring down KT&G’s first-quarter revenue 13.3 percent on-year but its sales will recover from third-quarter back in line with last year, said Cape Investment and Securities on Jan. 12.
Although there are concerns that electronic cigarettes could hurt the world’s fifth-largest tobacco company’s earnings, its growth is slow considering the price and consumer tastes, said analyst Kim Tae-hyeon.
“KT&G is exporting to Middle East, Russia, China and the US and will expand into Latin America and Africa. This is the right time to purchase as the stock price has dipped recently,” said the analyst.
KT&G’s fourth-quarter revenue would increase 16.7 percent to 1.01 trillion won on-year and operating profit 25.1 percent to 330 billion won, forecast Kim.
By Hwang You-mee (glamazon@heraldcorp.com)
Although there are concerns that electronic cigarettes could hurt the world’s fifth-largest tobacco company’s earnings, its growth is slow considering the price and consumer tastes, said analyst Kim Tae-hyeon.
“KT&G is exporting to Middle East, Russia, China and the US and will expand into Latin America and Africa. This is the right time to purchase as the stock price has dipped recently,” said the analyst.
KT&G’s fourth-quarter revenue would increase 16.7 percent to 1.01 trillion won on-year and operating profit 25.1 percent to 330 billion won, forecast Kim.
By Hwang You-mee (glamazon@heraldcorp.com)
