[Alpha Biz=(Chicago) Reporter Kim Jisun] In the securities market, there was a 'sell' opinion on KT, where CEO Kim Young-seop took office.

This is out of concern that dividend investors may leave due to possible changes in shareholder return policies. The stock price, which only rebounded in eight trading days, also fell again.

Hana Securities lowered its investment opinion on KT from 'buy' to 'neutral' on November 11. It is extremely rare for domestic securities firms to make a selling opinion, so simply lowering their investment opinion to neutral is actually considered a 'selling' opinion. The target price was also lowered from 40,000 won to 33,000 won.

On the Korea Exchange, KT closed at 31,200 won, down 3.55% from the previous trading day. KT's stock price fell for seven consecutive trading days from the 30th of last month when Kim took office to the 7th of this month. It only rebounded on the 8th, but it was pushed back even after returning the increase in just one day.

Hana Securities predicted a fall in KT's stock price because the new management hinted at a possible change in its management and dividend policies.

At a KT press conference on the 7th, CEO Kim said, "The return of shareholder profits is to return the money that needs to be spent now." On top of that, Kim Young-jin (CFO· Chief Financial Officer) added, "The shareholder return policy with a dividend payout ratio of more than 50% actually ended at the end of last year, and there will be an opportunity to disclose the appropriate shareholder return policy after the approval of the new board of directors."

In response, Kim Hong-sik, a researcher at Hana Securities, said, "Although it may help improve KT's constitution in the long term, short-term stock prices are likely to fall due to changes in shareholder characteristics."

"It is a declaration that they will seek long-term growth without focusing on creating short-term profits," Researcher Kim said. "Investors are more likely to worry about the possibility of an immediate reduction in dividends rather than cheering for long-term growth. It is seen as a short-term negative factor." Considering the exodus of dividend investors, he said the stock price should be left open to up to 25,000 won.

"If KT reduces its dividend propensity, a change in the composition of KT's shareholders is inevitable," Researcher Kim said. "Since the risk of a fall in short-term stock prices increases, we need to focus on avoiding the risk of falling stock prices by the end of the year."

 

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