NH Investment & Securities evaluated on the 2nd that Samsung Card will highlight its shareholder return appeal by maintaining a dividend payout ratio in the 40% range. It maintained a 'buy' investment rating and raised the target price from 54,000 won to 68,000 won. The previous day's closing price for Samsung Card was 50,600 won.
Yoon Yu-dong, an analyst at NH Investment & Securities, said, "Samsung Card has emerged as a stock related to shareholder returns following recent amendments to the Commercial Code and the introduction of separate taxation on dividend income," adding, "While maintaining a dividend payout ratio in the 40% range, it has consistently kept the dividend per share (DPS) stable or increased it despite fluctuations in performance."
He continued, "Samsung Card has a leverage ratio of 3.6, indicating it also has the capacity for additional dividends," and noted, "The means of utilizing treasury shares (currently holding a 7.9% stake) is also drawing attention." Samsung Card has not disclosed any official plans to enhance shareholder value.
It continues to expand its personal credit card issuance and is also experiencing growth in size. Samsung Card maintained its second place in industry market share through auto financing and medical service marketing in July, following the first half of the year.
Researcher Yoon noted, "In an unfavorable market environment, efforts are being made to manage the limits of vulnerable borrowers while improving soundness, resulting in limited customer acquisition pressure," and added, "These efforts could be linked to the sale of higher-margin loan products in the future, leading to a potential for higher performance compared to other companies."
He added, "The transaction amount for online shopping increased by 7.3% compared to the same period last year, which is believed to be influenced by consumption coupons," and stated, "Most of the usage locations are small and medium-sized merchants with low commission rates, but it is judged that the effects of consumption stimulus due to liquidity expansion have become apparent, similar to when disaster relief funds were distributed in the past."