Capital Group, a major US asset manager with nearly $3 trillion in assets under management (AUM), has acquired additional shares in KT&G. KT&G is included in the investment portfolios of numerous global asset managers with long-term investment philosophies, thanks to its stable earnings and shareholder return policy. Its growth has recently gained momentum as overseas operations have performed well.
According to the Data Analysis, Retrieval and Transfer System (DART) on Friday, Capital Group's KT&G holdings rose from 5,822,929 shares (a 5.61% stake) on the 4th of last month to 7,486,540 shares (7.21%) on the 29th. Capital Group holds its KT&G stake through subsidiaries including Capital Research and Management Company and Capital International. These units raised their stake by purchasing KT&G shares on the open market 33 times last month. Founded in 1931, Capital Group is a major US asset manager with AUM approaching $3 trillion that pursues long-term investment.
Many leading global asset managers hold KT&G in their investment portfolios. Foreign major shareholders currently holding more than 5% of KT&G include Capital Group, BlackRock and First Eagle. Singapore's GIC, one of the world's leading sovereign wealth funds, also holds more than 5% of KT&G.
KT&G is regarded as a stock that combines high earnings stability, a shareholder return policy and growth. In the first quarter, KT&G posted revenue of 1.7036 trillion won and operating profit of 364.5 billion won on a consolidated basis. These figures represent increases of 14.3% and 27.6%, respectively, from the first quarter of last year. In addition, its shareholder return policy of spending 3.7 trillion won on dividends and share buybacks from 2024 to 2027, along with the growth of its overseas business, is drawing attention. First-quarter revenue from KT&G's overseas cigarette business was 559.6 billion won, up 24.6% from the first quarter of last year.
KT&G plans to announce a new shareholder return policy in the second half of this year, including raising its dividend payout ratio, based on its growth centered on overseas business. "Through the successive stake acquisitions by global asset managers with strong long-term investment tendencies, the company's fundamental competitiveness is being recognized," a KT&G official said. "We will enhance shareholder value by building a virtuous cycle of profit growth centered on overseas business and shareholder returns."
