Korea Investment keeps Buy on KT&G stock at KRW 230,000 target

Published on 10/20/2026 at 03:42 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Profit is seen at KRW 515.0 billion, 4.00 percent above consensus. KT&G stock has 2026 guidance of 10.00-13.00 percent growth.

Operating outlook and valuation

Korea Investment maintained its KRW 230,000 target on October 15, 2026.
Second-quarter operating profit reached KRW 414.5 billion, up 18.50 percent year over year.
KT&G had a KRW 20.0 trillion market capitalization as of October 20, 2026.

KT&G, KR7033780008, Illustration mit AI erstellt.

KT&G (ISIN KR7033780008) faces a third-quarter operating-profit forecast of KRW 515.0 billion, 4.00 percent above consensus, as Korea Investment and Securities maintained its Buy rating and KRW 230,000 target on October 15, 2026, according to Yonhap. The forecast puts overseas tobacco growth and shareholder returns at the center of the investment case.

Guidance points to faster profit growth

KT&G reported second-quarter 2026 revenue of KRW 1.70 trillion and operating profit of KRW 414.5 billion, with operating profit up 18.50 percent from the same period a year earlier, according to Sejongdata. The company raised its 2026 full-year revenue growth outlook to 5.00-7.00 percent from 3.00-5.00 percent and its operating-profit growth outlook to 10.00-13.00 percent from 6.00-8.00 percent.

What drives the earnings forecast?

Korea Investment and Securities expects overseas cigarette revenue, domestic cost reductions and real-estate presales to support the third quarter. Its KRW 515.0 billion operating-profit estimate is 11.00 percent above the prior-year period and 4.00 percent above consensus, while the target remains KRW 230,000, according to Maeil Business Newspaper.

Three dates shape the story

On August 6, 2026, KT&G presented its second-quarter results and investor materials, including a planned KRW 2,000 per-share interim dividend, according to KT&G. On October 7, 2026, the company announced full-scale operations at its Indonesian plant, with future cigarette production capacity of up to 35.0 billion sticks. On October 15, 2026, Korea Investment and Securities published its KRW 515.0 billion third-quarter operating-profit forecast and retained the KRW 230,000 target.

Valuation follows the earnings path

The market is weighing a stronger profit outlook against the timing of KT&G's next shareholder-return policy. The company said it plans to announce a new medium-term policy during the fourth quarter of 2026, while the analyst case rests on overseas volume, pricing and the completion of a major capital-expenditure cycle.

On the KRX, KT&G was trading at KRW 193,100 on October 20, 2026 at 10:21 a.m. KST, with a 52-week range of KRW 132,100 to KRW 195,500. The stock's market capitalization was KRW 20.0 trillion as of October 20, 2026.