KT & G, the course introduces the child, the domestic tobacco market contraction forecast -KTB Securities

It was [Korea goyounghun financial newspaper reporter] KTB Investment & Securities 17 days when kids introduce courses for KT & G to the domestic tobacco market collapse is expected doendamyeo BUY rating with a target price maintained for 14 yuan.

Local Tax Law enforcement in accordance with the amendments increased the possibility of the introduction of the Philip Morris IQOS (Heated Tobacco Sticks electronic cigarettes heated, child course or less). And recently it secured a share of the Japanese market faster course my child, threatening the collapse gwonryeon tobacco market competition.

KTB Investment & Securities hands hunger researcher, "If there is price competitiveness when introducing children course, the domestic reduction of the tobacco market is inevitable," said, "but detergent somewhat early to revise the bill build moored to confirm at the moment the child course timing and price competitiveness introduction "he said diagnosis.

In yesterday's share price KT & G is of the opinion that excessive.

Hand researchers "Eye course, if appropriate at the beginning of the year solids, heat sticks in accordance with the current law is a relatively low tax been applied price range according to chulgoga is estimated to 2790-4500 won," he said "In February, Kim Young-jin Rep other 10 presents the equity issue between taxable and tax explained that the initiative for amendments to the Tobacco and tobacco work state. "

Current information, the Ministry of Government Administration and Home Affairs as the same tax rates levied on goods such as tobacco and gwonryeon gotta have a pending bill on electronic cigarettes and related to individual consumption tax rate changes.

He continued, "warning foil issue, despite February cumulative domestic cigarette demand is rather good side," said "last December, volume extrusion effect should check back later removed, but now fears are excessive side," he analyzed .



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