IBK, Closest to Applying Dividend Separate Taxation.. Target Price Raised -DB Securities

[Financial News] DB Securities raised the target stock price of IBK from 18,000 won to 25,000 won. It is evaluated that there is a high possibility of applying this when the separate taxation of dividend income is implemented in the future, as the company is pursuing a shareholder return policy centered on dividends. The investment opinion was maintained as 'Buy'.
On the 18th, Nam Min-uk, a researcher at DB Securities, stated, "The expected net income attributable to controlling shareholders of IBK in the second quarter is expected to be 666.3 billion won, which is expected to fall short of the consensus by -1.6%." It is expected that non-monetary foreign exchange gains of about 105 billion won will be reflected due to the decline in the won-dollar exchange rate.
The separate dividend payout ratio of IBK last year was 35%, and the consolidated basis was 32%. The dividend scale is confirmed through the dividend council in February, and it is expected that the dividend payout ratio and the introduction of quarterly and semi-annual dividends will be confirmed in February next year. Even if the criteria for applying separate taxation on dividend income are applied on a consolidated basis, there is a possibility of achieving a dividend payout ratio of 35% in the near future.
Researcher Nam said, "In line with the normalization of the domestic stock market, such as the amendment of the Commercial Act and the separate taxation of dividend income, the market expected return is adjusted downward to 8.5%," and "the target price-to-book ratio (PBR) of IBK is at the level of 0.62 times, as the discount rate is slightly reduced due to the possibility of applying separate taxation on dividend income."

nodelay@fnnews.com Park Ji-yeon Reporter