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    A033780   KR7033780008

KT&G CORPORATION

(A033780)
  Report
End-of-day quote Korea Stock Exchange  -  2023-01-25
96400.00 KRW   +1.05%
12:57aK-TIG Acquiring UK-Based Metal Fabrications Manufacturer in AU$31 Million
MT
01/19Flashlight Capital Nominates Suk Yong Cha and Ouk-Jung Hwang to the Board of KT&G Corporation
CI
01/18Flashlight Capital Submits Shareholder Proposals KT&G Corporation
CI
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SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

ANDA Asset Management Calls for Overhaul of Tobacco Giant KT&G

11/02/2022 | 04:12am EST

By Dave Sebastian


South Korea-based hedge fund ANDA Asset Management is calling for changes at tobacco giant KT&G Corp., including a phase out of traditional tobacco products and a spinoff of its ginseng business.

The activist campaign by ANDA, which has about $1 billion in assets under management and a stake of less than a 1% stake in KT&G, follows a similar one by Flashlight Capital Partners, an investment firm that released a letter last week also urging an overhaul of the South Korean company.

ANDA intends to put its proposal forward at KT&G's next annual meeting, Chulhong Park, head of ANDA's ESG investment team, told The Wall Street Journal on Wednesday.

He added that the firm's campaign is unrelated to Flashlight's.

The hedge fund said the ginseng business could increase its sales and appeal to more customers by expanding into energy drinks on top of tea and dried foods. It recommended bringing in senior management or board members with experience in marketing and global sales to implement a turnaround and rebranding strategy.

ANDA also said that KT&G should aim to phase out traditional tobacco products by 2030 and push for "heat-not-burn" products, as tobacco businesses face the threat of potential sales bans around the world in the wake of environmental, social and governance trends.

The firm is calling for KT&G to return an additional 500 billion won ($352.8 million) annually to shareholders through dividends and share buybacks, and increase the cash dividend payout ratio to 80%. It is recommending that the company invest roughly the same amount in research and development and marketing for the heat-not-burn business.

ANDA has started discussions with local individual investors and key foreign investors, and plans to further engage with KT&G's management soon, Mr. Park said.

KT&G didn't immediately respond to a request for comment.

A company spokesman last week said that it has been closely communicating with shareholders and values their comments.

KT&G's shares rose 2.3% on Wednesday, bringing gains to 5.7% since Oct. 25, when WSJ first reported on Flashlight's campaign. It has a market capitalization of about $9 billion.


Write to Dave Sebastian at dave.sebastian@wsj.com


(END) Dow Jones Newswires

11-02-22 0511ET

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Financials
Sales 2022 5 649 B 4,57 B 4,57 B
Net income 2022 1 162 B 0,94 B 0,94 B
Net cash 2022 2 191 B 1,77 B 1,77 B
P/E ratio 2022 10,4x
Yield 2022 5,14%
Capitalization 10 930 B 8 852 M 8 852 M
EV / Sales 2022 1,55x
EV / Sales 2023 1,49x
Nbr of Employees -
Free-Float 84,5%
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Technical analysis trends KT&G CORPORATION
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Income Statement Evolution
Consensus
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Mean consensus BUY
Number of Analysts 16
Last Close Price 96 400,00 KRW
Average target price 104 968,75 KRW
Spread / Average Target 8,89%
EPS Revisions
Managers and Directors
Bok-In Baek President, Chief Executive Officer & Director
Gyeong-Bo Kang Managing Director & Head-Finance
Chi-Beom Oh Senior Managing Director, Head-R&D
Eop-Kyo Song Independent Director
Hae-Soo Yoon Independent Director
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