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THE INVESTOR
September 24, 2018
Big Reunion

Stocks & Bonds

[EQUITIES] ‘KT&G to gain from Heets markup’

  • PUBLISHED :December 18, 2017 - 13:55
  • UPDATED :January 15, 2018 - 17:33
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[THE INVESTOR] KT&G will benefit from the increase in price of Philip Morris Korea’s e-cigarettes, said Kiwoom Securities on Dec. 18, maintaining a “buy” recommendation and raising the target price to 157,000 won (US$143.93) from 146,000 won.

"The price increase of Heets for IQOS will be favorable for KT&G in the mid-term in expanding its share in the e-cigarettes market and in the long-term, in making room to raise its own prices," said analyst Park Sang-jun in a report. 



KT&G employees demonstrate how to use Lil.



KT&G unveiled its heat-not-burn device Lil last month. Fiit is the tobacco exclusively designed for the device that will be distributed nationwide from the beginning of next year. Lil is expected to attain a 5 percent market share in the second quarter, according to the analyst. 

Similar to its competitors, Fiit will enjoy low taxes and will be launched through duty-free channels, and its average price in the domestic market will rise between 2-3 percent a year, said Park. 

The expectations for growth of the tobacco company may rise significantly from the new product, added the analyst. 

By Hwang You-mee (
glamazon@heraldcorp.com)

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