Target Prices Surge on Expanded Shareholder Returns... DB Insurance Jumps More Than 7%

[Financial News] DB Insurance is trading sharply higher, rising more than 7% on expectations of expanded shareholder returns.
As of 1:30 p.m. on the 1st, DB Insurance was trading at 194,800 won, up 13,700 won, or 7.56%, from the previous session.
Earlier, on the 28th of last month, DB Insurance announced a plan to enhance corporate value. The plan calls for lifting its shareholder return ratio to 40% on a consolidated basis and 50% on a separate basis by 2030, while increasing its dividend per share by at least 10% every year.
That is a 15 percentage point increase from the original target of raising the separate-basis ratio to 35% by 2028.
Brokerages are increasingly raising their target prices, saying DB Insurance has unveiled a proactive shareholder return policy. Daol Investment & Securities kept its investment rating at "Buy" and raised its target price for DB Insurance from 260,000 won to 270,000 won.
Kim Ji won, a researcher at Daol Investment & Securities, said, "This can be interpreted as an indication that the company will continue shareholder returns even amid volatility by broadening the range of indicators used to assess its ability to carry out shareholder returns." She added, "It also appears to have widened the DCR range in consideration of possible changes in distributable profits caused by fluctuations in net assets and deduction factors, suggesting a commitment to securing stability in shareholder return execution."
She also said, "It may be disappointing that share buybacks are allowed only on an exceptional basis and that the higher cash dividend is not eligible for tax exemption. However, I believe this stems from DB Insurance's ownership structure and capital structure." She added, "The company is being evaluated as having proposed a shareholder return policy that benefits ordinary shareholders by increasing dividend size and securing stability."
Other brokerages also raised their target prices one after another, including Samsung Securities, from 220,000 won to 250,000 won; Shinhan Investment & Securities, from 220,000 won to 245,000 won; NH Investment & Securities, from 213,000 won to 256,000 won; and LS Securities, from 210,000 won to 230,000 won.
[email protected] Seom Minji Reporter