[Click eStock] "Ajou Capital, High Profitability Continues This Year... Target Price Up 7.4%"

[Asia Economy Reporter Park Jihwan] Ebest Investment & Securities on the 26th issued a buy rating for Ajou Capital, expecting a continued trend of profit growth and high profitability, and raised the target price by 7.4% from the previous 13,500 KRW to 14,500 KRW.

Researcher Jeon Baeseung of Ebest Investment & Securities stated, "The consolidated net profit for Q4 2019 was 28 billion KRW, a 9% increase compared to the same period last year, continuing the trend of improved performance," adding, "While interest income growth continued, despite the seasonal increase in expenses, loan loss costs were managed stably, maintaining high profitability." He analyzed that although the non-performing loan ratio significantly increased due to a comprehensive asset quality reclassification of personal business loans closed during Q4, there was no impact on delinquency rates or loan loss costs.

It is expected that this year will see around 15% high asset growth along with additional expansion of interest income.

Researcher Jeon Baeseung explained, "The pressure of rising loan loss costs due to economic downturn is a burden factor, but the recent sharp decline in market interest rates is positive for both performance and profitability in terms of reducing funding costs." He added that this year is expected to be a year where both performance and story coexist, especially with the upcoming inclusion as a subsidiary of Woori Financial Group.

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