KT&G shares jumped 5.7% to a record close after BlackRock disclosed a 5.01% stake in the company. Photo credit: KT&G.
KT&G shares climbed to record levels after BlackRock, the world’s largest asset manager, disclosed that it holds a 5.01% stake in the Korean tobacco and consumer goods company.
Regulatory filings released on January 30 show that BlackRock purchased 68,646 KT&G shares earlier in the week. Including its existing holdings, the US-based firm now owns 5.91 million shares, meeting the threshold that requires public disclosure under Korean financial regulations. Investors who acquire 5% or more of a listed company must report their holdings and any changes to the Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange within 5 days.
Based on data from financial information provider FnGuide, BlackRock now ranks among KT&G’s top 5 shareholders. IBK Industrial Bank of Korea remains the largest shareholder with an 8.06% stake, followed by the National Pension Service, which holds 7.74%.
The market responded swiftly to the disclosure. KT&G shares surged 5.7% from the previous session and closed at KRW153,900 (US$107), marking the highest closing price in the company’s history.
Foreign investors have continued to increase their exposure to KT&G, attracted by the company’s dividend growth rate and shareholder-friendly policies, including active retirement of treasury shares. Foreign ownership of KT&G stock has risen into the 43% range, according to market data.
Investor optimism has also strengthened ahead of KT&G’s fourth-quarter earnings announcement. Market consensus forecasts last year’s sales at KRW6.53 trillion (US$4.55 billion), representing a 10.6% increase from the previous year. Analysts expect operating profit to rise 13.3% year-on-year to around KRW1.37 trillion (US$955 million).
Securities firms attribute the expected earnings growth to higher overseas sales driven by strategic unit price increases. Analysts also point to KT&G’s expanding list of distribution countries and the normalization of device supply as key contributors to revenue growth.
In addition, analysts expect profitability to improve as the company increases the share of overseas production and realizes efficiency gains from improved logistics and cost structures. These factors have supported expectations for a higher operating profit margin and reinforced positive sentiment toward the stock.