Financials KT&G Corporation

Equities

A033780

KR7033780008

Tobacco

End-of-day quote Korea S.E. Other stock markets 06:00:00 2024-07-04 pm EDT			5-day change	1st Jan Change
88,000 ^KRW	0.00%		-0.23%	+1.27%

Jun. 17	Korea Ginseng to Launch Red Ginseng Products in Malaysia via Local Outlets	MT
Jun. 13	KT&G's Finance Director Appointed as New Member of IFRS Interpretation Committee	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	11,843,669	10,311,042	9,802,314	10,639,613	9,803,182	9,927,812	-	-
Enterprise Value (EV) ²	9,482	8,650	9,004	9,411	9,377	8,192	8,244	8,297
P/E ratio	11.4 x	8.92 x	9.99 x	10.8 x	11.1 x	11.2 x	10.4 x	9.61 x
Yield	4.69%	5.4%	6.08%	5.46%	5.98%	6.01%	6.27%	6.48%
Capitalization / Revenue	2.39 x	1.94 x	1.87 x	1.82 x	1.67 x	1.67 x	1.57 x	1.49 x
EV / Revenue	1.91 x	1.63 x	1.72 x	1.61 x	1.6 x	1.37 x	1.3 x	1.25 x
EV / EBITDA	6.06 x	5.13 x	5.79 x	6.3 x	6.66 x	6.02 x	5.35 x	5.07 x
EV / FCF	14.6 x	8.35 x	7.88 x	14.6 x	11.8 x	10.9 x	11.8 x	9.5 x
FCF Yield	6.84%	12%	12.7%	6.87%	8.46%	9.18%	8.44%	10.5%
Price to Book	1.6 x	1.14 x	1.03 x	1.14 x	1.07 x	1.18 x	1.14 x	1.08 x
Nbr of stocks (in thousands)	126,265	124,080	124,080	116,280	112,810	112,816	-	-
Reference price ³	93,800	83,100	79,000	91,500	86,900	88,000	88,000	88,000
Announcement Date	2/13/20	2/3/21	2/10/22	2/9/23	2/7/24	-	-	-

¹KRW in Million²KRW in Billions³KRW

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	4,966	5,302	5,228	5,856	5,872	5,958	6,326	6,641
EBITDA ¹	1,565	1,686	1,556	1,493	1,408	1,361	1,541	1,635
EBIT ¹	1,382	1,482	1,338	1,268	1,168	1,133	1,276	1,356
Operating Margin	27.82%	27.96%	25.6%	21.65%	19.89%	19.01%	20.17%	20.42%
Earnings before Tax (EBT) ¹	1,463	1,613	1,440	1,425	1,249	1,295	1,382	1,472
Net income ¹	1,035	1,173	978.7	1,005	902.7	955.5	1,015	1,086
Net margin	20.84%	22.13%	18.72%	17.15%	15.37%	16.04%	16.05%	16.35%
EPS ²	8,208	9,320	7,910	8,489	7,843	7,842	8,483	9,160
Free Cash Flow ³	649,000	1,035,800	1,142,002	646,504	792,900	752,078	695,940	873,313
FCF margin	13,069.66%	19,537.43%	21,842.49%	11,039.14%	13,502.25%	12,622.58%	11,002%	13,149.77%
FCF Conversion (EBITDA)	41,474.63%	61,446.36%	73,414.99%	43,299.33%	56,297.57%	55,263.84%	45,160.33%	53,405.79%
FCF Conversion (Net income)	62,699.26%	88,289.87%	116,687.44%	64,359.15%	87,840.19%	78,710.08%	68,550.99%	80,408.99%
Dividend per Share ²	4,400	4,489	4,800	5,000	5,200	5,287	5,513	5,700
Announcement Date	2/13/20	2/3/21	2/10/22	2/9/23	2/7/24	-	-	-

¹KRW in Billions²KRW³KRW in Million

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q4	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	1,050	1,403	1,417	-	1,625	1,412	1,396	1,336	1,690	1,451	1,292	1,416	1,756	1,558	-	-
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	266.7	333	327.6	-	405.6	201.6	316.5	242.9	406.7	198.6	236.6	260.3	396	258.8	-	-
Operating Margin	25.41%	23.74%	23.11%	-	24.97%	14.28%	22.68%	18.18%	24.07%	13.68%	18.31%	18.38%	22.55%	16.61%	-	-
Earnings before Tax (EBT) ¹	216.2	396.2	476.7	-	648.8	-99.88	392.6	272.4	459.5	121.2	367.6	298.5	391.7	255.3	-	-
Net income ¹	95.4	264.1	330.8	603.6	464.1	-63.21	270.5	197.9	313.8	93.22	285.2	216.6	298.9	180.1	-	-
Net margin	9.09%	18.83%	23.34%	-	28.57%	-4.48%	19.38%	14.81%	18.58%	6.42%	22.07%	15.29%	17.02%	11.56%	-	-
EPS ²	792.0	2,201	2,830	5,031	3,868	-410.0	2,326	1,727	2,708	1,067	2,478	1,397	2,106	1,165	-	-
Dividend per Share ²	4,800	-	-	-	-	5,000	-	-	-	5,200	-	1,223	-	4,077	-	1,315
Announcement Date	2/10/22	5/12/22	8/4/22	8/4/22	11/3/22	2/9/23	5/11/23	8/3/23	11/9/23	2/7/24	5/9/24	-	-	-	-	-

¹KRW in Billions²KRW

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	-	-	-	-	-	-	-
Net Cash position ¹	2,362	1,661	799	1,229	427	1,736	1,683	1,630
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ²	649,000	1,035,800	1,142,002	646,504	792,900	752,078	695,940	873,313
ROE (net income / shareholders' equity)	12.4%	13.2%	10.8%	11%	9.76%	10.2%	10.7%	11.2%
ROA (Net income/ Total Assets)	9.93%	10.5%	8.47%	8.49%	7.2%	7.29%	7.55%	7.74%
Assets ¹	10,420	11,124	11,553	11,837	12,537	13,111	13,442	14,038
Book Value Per Share ³	58,448	72,831	76,348	80,114	81,326	74,694	77,391	81,643
Cash Flow per Share ³	8,417	10,168	11,044	7,420	10,999	9,981	10,297	10,685
Capex ¹	413	220	224	241	472	492	387	514
Capex / Sales	8.31%	4.16%	4.29%	4.12%	8.03%	8.25%	6.12%	7.74%
Announcement Date	2/13/20	2/3/21	2/10/22	2/9/23	2/7/24	-	-	-

¹KRW in Billions²KRW in Million³KRW

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for KT&G Corporation

Trading Rating

Investor Rating

ESG Refinitiv

A-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

88,000 KRW

Average target price

109,882 KRW

Spread / Average Target

+24.87%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Cigars & Cigarette Manufacturing

	1st Jan change	Capi.
KT&G CORPORATION	+1.27%	7.2B
ITC LIMITED	-6.16%	64.87B
JAPAN TOBACCO, INC.	+21.21%	48.81B
PT HANJAYA MANDALA SAMPOERNA TBK	-18.99%	5.18B
RLX TECHNOLOGY INC.	-9.00%	2.31B
PT GUDANG GARAM TBK	-15.62%	2.03B
BRITISH AMERICAN TOBACCO BANGLADESH COMPANY LIMITED	-36.32%	1.52B
SCANDINAVIAN TOBACCO GROUP A/S	-14.83%	1.19B
EASTERN COMPANY S.A.E	-12.84%	1.15B
KARELIA TOBACCO COMPANY INC.	+1.75%	1.04B

Cigars & Cigarette Manufacturing