[Click eStock] "Kiwoom Securities, Excessive Expectations on Brokerage Revenue Are a No-Go"

[Asia Economy Reporter Minji Lee] On the 26th, SK Securities maintained a neutral investment opinion and a target price of 80,000 won for Kiwoom Securities. This judgment was based on the view that although brokerage revenue has significantly increased since the COVID-19 pandemic, the corporate value has not improved.

Kiwoom Securities recorded a controlling shareholder net profit of 9.4 billion won in the first quarter, largely affected by a 120 billion won loss in the securities management division. Recovery in performance is expected in the second quarter due to the stock market rebound in April and May.

Researcher Kyunghoe Koo of SK Securities said, “It is the securities stock that benefits the most from the surge in new individual accounts and increased trading volume,” adding, “However, most of these short-term positive factors have already been reflected in the stock price, which rose up to 73% from its low point.”

This year, a rapid change in the financial environment is expected. Considering that the investment attractiveness of securities stocks is not high, there is no judgment that there is a momentum for stock price increase enough to improve securities management performance in the second quarter.

Researcher Kyunghoe Koo explained, “Since the increase in trading volume may be temporary, excessive expectations should not be placed on securities companies’ brokerage business,” and “In the long term, the brokerage market will not have a significant impact on securities companies’ performance.”

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