April 25, 2024

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[THE INVESTOR] KT&G missed earnings prospects in the fourth quarter last year, said KB Investment and Securities on Jan. 9. 

Dragged down by declining sales of tobacco both at home and overseas, its revenue fell 6.1 percent on-year to 1.04 trillion won (US$973.42 million) and operating profit by 9.6 percent to 275.7 billion won, estimated analyst Park Ae-ran.

Domestic sales of tobacco decreased 8 percent on-year undermined by that of heat-not-burn devices, and exports were down 13.7 percent, according to the analyst. 

The growth of e-cigarettes will continue this year, forecast Park but its current stock price is 30 percent lower than its global peers, she added maintaining a “buy” recommendation and 125,000 won target price.

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