[Click eStock] "Samsung Securities, Maintains Profit Despite Decrease in Average Daily Trading Volume Next Year... Target Price Up"

[Asia Economy Reporter Oh Ju-yeon] KB Securities analyzed that among major securities firms, Samsung Securities has the highest sensitivity to brokerage profit, and despite the base effect of large derivative-linked securities losses in the first quarter and low sensitivity to interest rate fluctuations, it can maintain profit at this year's level even with a forecasted decrease in average daily trading volume next year.

Accordingly, KB Securities maintained a 'Buy' investment opinion on Samsung Securities and raised the target price by 10% to 55,000 KRW.

On the 15th, KB Securities revised the average daily trading volume forecasts for 2021 and 2022 to 18.8 trillion KRW and 16.6 trillion KRW, respectively, representing increases of 35.6% and 19.5% compared to previous estimates. Reflecting this, Samsung Securities' 2021 consolidated net income attributable to controlling shareholders is projected at 540.5 billion KRW. Although this is expected to decrease by 1.3% compared to this year, it is 13.8% higher than the previous estimate.

Researcher Kang Seung-geon analyzed, "Although the average daily trading volume is expected to decrease by 14.8% compared to 2020, the base effect of large derivative-linked securities losses recorded in the first quarter of 2020 will be reflected, and unlike competitors, the increasing balance of debt guarantees and strong IPO deals are expected to increase IB-related fee income by 9.1%."

Researcher Kang added, "Unlike competitors, steady growth in the IB sector is expected, and Samsung Securities is relatively free from the risk factors of stock market volatility and interest rate rise burdens in 2021," maintaining Samsung Securities as the top pick in the securities industry.

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