[Click eStock] "Meritz Securities Expected to Meet Q3 Earnings Consensus"

[Asia Economy Reporter Ji-hwan Park] Yuanta Securities maintained a buy rating and a target price of 4,500 KRW for Meritz Securities on the 5th, stating that its third-quarter earnings this year are expected to meet market expectations.

Jeong Tae-jun, a researcher at Yuanta Securities, said, "The third-quarter profit is expected to be 119.4 billion KRW, in line with the consensus of 116.5 billion KRW," adding, "Although it will be difficult to surpass the second-quarter profit due to the slowdown in the stock market and the rebound in market interest rates, the additional increase in trading volume is expected to result in a 14.4% growth compared to the same period last year."

Meritz Securities shifted its strategy during the second quarter to focus on soundness management rather than growth by significantly reducing its real estate project financing (PF) exposure, so it is analyzed that profit resilience will not increase for a while.

It is expected that brokerage commission fees will show high growth of 207% compared to the same period last year, as the trading volume increased more than the previous quarter. However, the balance of debt guarantees is expected to decrease compared to the same period last year, and it is judged that the end of COVID-19 or relaxation of real estate regulations is necessary for recovery.

Researcher Jeong Tae-jun predicted, "Interest income and expenses are expected to slightly decrease compared to the previous quarter due to the decrease in PF loan balance," and "Trading and product income are expected to decrease compared to the previous quarter due to the slowdown in the stock market and the rebound in market interest rates."

Researcher Jeong emphasized, "In the long term, when the liquidity rally ends, the impact will be relatively small because it has benefited less from liquidity than other companies," and "Since the real estate PF, which was a differentiating factor, has already taken a direct hit, securing new growth engines is necessary."

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