Samsung Securities announced on August 21 that it has presented a more proactive shareholder return policy for KCC through its corporate value enhancement plan, maintaining a 'buy' rating and a target price of 650,000 won.
In a report released that day, analyst Jo Hyun-ryeol stated, "KCC has disclosed its corporate value enhancement plan for this year, highlighting a shift from last year by expressing its intent to utilize investment assets such as Samsung C&T. The methods of utilization include plans for sales and the redistribution of received dividends."
Jo explained, "The plan for financial asset liquidity has been formalized, and prior to any sales, KCC plans to redistribute more than 50% of the special dividends (total dividends per share minus 2,500 won per share) received from Samsung C&T."
He further noted, "The estimated dividends per share (DPS) for KCC are projected to be 15,000 won for both 2026 and 2027, and 23,200 won for 2028, with dividend yields estimated at 3.2%, 3.2%, and 4.9%, respectively. However, the current consensus on Samsung C&T's dividends does not fully reflect the dividends expected from Samsung Electronics, suggesting that KCC's dividend yield could be adjusted upward from its current level."
Additionally, he remarked, "While investors may not have expected dividends, considering the scale of investment assets, a complete sale in the short term is challenging. Therefore, establishing a plan for investors to benefit during the holding period is a positive development. This could lead to more in-depth discussions between investors and the company regarding shareholder return strategies."
* This article has been translated by AI.
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