[Click eStock] "Mirae Asset Daewoo, Gradual Visibility of Capital Efficiency"

[Asia Economy Reporter Song Hwajeong] Daishin Securities evaluated that capital efficiency of Mirae Asset Daewoo is gradually becoming visible and maintained a 'Buy' investment rating and a target price of 9,000 KRW on the 6th.

Researcher Park Hyejin of Daishin Securities stated, "The balance of Mirae Asset Daewoo's real estate project financing (PF) debt guarantees, which are currently regulated, is 1.6 trillion KRW, accounting for only 39% of its equity capital. Despite a 33.2% decrease in debt guarantee fees compared to 2018, total corporate finance (IB) related revenue recorded 484 billion KRW, generating over 100 billion KRW in revenue per quarter," and analyzed, "Additionally, product management revenue recorded 652 billion KRW last year, offsetting previous sluggishness." Researcher Park added, "In particular, even during the interest rate hike period, downside rigidity was secured in product management revenue," and "Capital efficiency is gradually but visibly improving."

Mirae Asset Daewoo's fourth-quarter performance last year exceeded consensus. The controlling shareholder net profit in the third quarter increased by 403.8% year-on-year to 136.2 billion KRW, surpassing consensus by 17.4%. Researcher Park explained, "As the trading volume in the fourth quarter increased by 13.7% compared to the third quarter, Mirae Asset Daewoo's brokerage fees also rose by 3.1% in the fourth quarter," and "IB-related revenue, which was relatively sluggish in the third quarter, recovered to record 110 billion KRW in the fourth quarter, an 18.6% increase from the previous quarter. Considering that the fourth quarter is usually the off-season for IB deals, this is a favorable performance."

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