Record Performance Kiwoom Securities, Q3 Outlook Also 'Clear'

Operating Profit in Q2 Soars 380% Year-on-Year to 313.9 Billion KRW... Stock Price Gains Momentum

[Asia Economy Reporter Oh Ju-yeon] Kiwoom Securities, which recorded the highest quarterly performance ever in the second quarter of this year, is expected to continue its strong performance in the third quarter as well.

According to financial information provider FnGuide on the 5th, Kiwoom Securities' operating profit for the third quarter of this year, estimated by three or more domestic securities firms, is expected to reach 144.7 billion KRW. This is a 68.7% increase compared to 85.8 billion KRW in the third quarter of last year. This is because brokerage revenue is expected to continue to rise in the third quarter following the second quarter due to increased trading volume by individual investors.

Kiwoom Securities posted a consolidated operating profit of 313.993 billion KRW in the second quarter, a 380% increase compared to the same period last year, and recorded a controlling net profit of 219.9 billion KRW, setting a record high. The IB division, which accounted for 23% of last year's net operating income, recorded 34 billion KRW, down about 36% from the previous quarter and 6% from the same period last year, but benefited greatly from the significant increase in individual investor trading volume. Brokerage revenue reached 120 billion KRW, up 177% year-on-year and 34% quarter-on-quarter. Domestic stock commissions increased by 58.0%, and overseas stock commissions also rose by 123.1%.

Kiwoom Securities' stock market share increased from 18.7% in the first quarter to 22% in the second quarter, and the average daily number of new accounts remained at around 6,000 accounts. The self-investment (PI) segment, which posted an evaluation loss of 11.98 billion KRW in the first quarter, showed an evaluation gain of 9.54 billion KRW in the second quarter, also contributing to the improvement in performance amid the stock market recovery.

Park Hye-jin, a researcher at Daishin Securities, said, "Kiwoom Securities' brokerage commission revenue this year is expected to increase by 111% year-on-year to 630 billion KRW," adding, "Excess liquidity will support the downside of earnings through brokerage commission revenue." Jeong Jun-seop, a researcher at NH Investment & Securities, evaluated, "Although the possibility of losses from the Gentwo Fund and chronic PI revenue volatility are concerns, the risks are lower compared to large firms exposed to various uncertainties."

The stock price is also gaining momentum. Kiwoom Securities' stock price, which was 96,200 KRW on the 3rd, rose to 113,000 KRW during the trading session on the same day, setting a new 52-week high. The securities industry sees further upside potential for Kiwoom Securities' stock price and has been raising target prices consecutively. Korea Investment & Securities raised the target price from 94,000 KRW to 122,000 KRW, expecting domestic stock revenue to increase by 70% year-on-year and overseas stock revenue to increase by more than 1,000%. Cape Investment & Securities also maintained Kiwoom Securities as the top pick in the sector, expecting better earnings in the second half than in the first half, and raised the target price from 104,000 KRW to 128,000 KRW. Daishin Securities and NH Investment & Securities also raised their target prices to 130,000 KRW and 129,000 KRW, respectively.

Jang Hyo-seon, a researcher at Samsung Securities, said, "In the era of new money moves, Kiwoom Securities' unique brokerage platform value is expected to be continuously highlighted," adding, "Although there are concerns about additional stock price upside potential, the relative advantage within the sector will continue in the third quarter."

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