KGHM management plans next year’s dividend payout at 40% of 2006 net earnings, which should come slightly above the company’s official target of PLN 3.38bn, implying the dividend per share at PLN 7 and dividend yield at 7%.
Our view: We view the news as neutral. The management has already guided for slightly overshooting the official profit target a month ago, and the payout ratio at 40% is in line with expectations. We reiterate our Hold rating for the stock.