[Click eStock] "Mirae Asset Daewoo, Possible External Growth Compared to Previous Quarter"

[Asia Economy Reporter Eunmo Koo] Yuanta Securities expects Mirae Asset Daewoo to achieve external growth compared to the previous quarter. The investment opinion and target price were maintained at 'Buy' and 8,700 KRW, respectively.

On the 13th, researcher Taejun Jung of Yuanta Securities estimated in a report that Mirae Asset Daewoo's consolidated profit for the fourth quarter of last year would record 115.3 billion KRW, below the consensus of 120.7 billion KRW. Researcher Jung said, "This is because approximately 10 billion KRW of non-recurring expenses such as anniversary costs and performance fees are expected to be reflected," adding, "Despite an unfavorable business environment, net operating income is expected to slightly increase compared to the previous quarter, so overall it is positive."

Net commission income is expected to increase by 17.0% compared to the previous quarter due to the recovery of brokerage and IB fees. Researcher Jung predicted, "The recovery of brokerage commissions is expected to be due to a rebound in trading volume, with the average daily trading volume in the fourth quarter expected to increase by 13.7% compared to the previous quarter." In addition, IB fees are expected to rebound as the company has relatively good capacity for new investments compared to others.

Interest income and expenses are expected to increase by 16.4% compared to the previous quarter due to the recovery effect of credit extension balances. Researcher Jung explained, "The credit extension balance in the fourth quarter increased by about 1% compared to the end of the previous quarter, and the market share, which had contracted in the previous quarter, is expected to recover," adding, "There is still sufficient room to expand real estate project financing (PF) loans, so additional improvement is expected."

Furthermore, trading and product income are expected to remain profitable despite the interest rate hike in the fourth quarter, thanks to a favorable stock market environment and the interest rate decline in December last year.

This content was produced with the assistance of AI translation services.