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[Alpha Biz= Reporter Kim Sangjin] Hana Securities Maintains ‘Buy’ on Korean Air, Cites Limited Potential for Shareholder Return Expansion
On the 30th, Hana Securities analyzed Korean Air, stating that its capacity to expand shareholder returns is limited. The firm maintained its ‘Buy’ rating and target price of 27,000 KRW.
Hana Securities explained, "Korean Air was included in the Korea Value-Up Index, and the dividend payout for 2022 and last year was 750 KRW, with payout ratios of 15.6% and 26.1%, respectively. According to the current dividend policy, the dividend is capped at 30% of the standalone net income."
They added, "While this year's performance could allow for a dividend increase, the potential to expand shareholder returns remains constrained due to the impending acquisition of Asiana Airlines."
The acquisition of Asiana Airlines is expected to be completed by the end of this year. After the acquisition, Asiana is anticipated to undergo a capital expansion through a rights offering and debt repayment, which would significantly improve its cost structure.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
