[Alpha Biz=(Chicago) Reporter Paul Lee] NH Investment & Securities predicted on the 8th that Hanwha Insurance will be able to expand shareholder returns as the system of deducting cancellation refund reserves excluding corporate taxes is improved. It maintained its target stock price of KRW 6,000 and investment opinion 'buy'.
Hanwha Insurance posted a separate net profit of 37 billion won in the fourth quarter of last year. This was below the market consensus, but it was relatively good considering the season. Hanwha Insurance said it plans to secure more than 700 billion won in new contract service margins (CSM) by expanding new contracts for high-margin comprehensive insurance this year.
Hanwha Insurance decided to pay dividends for the first time in five years last year. Dividends per share are 200 won, and dividend propensity including preferred stocks is 12.6%.
NH Investment & Securities said that Hanwha Insurance's dividend was meaningful, but it did not meet market expectations. The dividend yield on ordinary shares based on the current stock price is 4.1%, slightly above the bank's regular deposit rate.
Alphabiz Reporter Kim SangJin(hoondork1977@alphabiz.co.kr)
