[Click eStock] "Kiwoom Securities, Strong Q1 Performance Expected... Target Price Up 11%"

[Asia Economy Reporter Park Jihwan] NH Investment & Securities announced on the 22nd that despite the recent market correction causing a general weakness in stock prices within the securities industry, Kiwoom Securities is expected to post solid earnings in the first quarter of this year. They maintained a 'Buy' investment rating and raised the target price by 11.1%, from the previous 180,000 KRW to 200,000 KRW.

Jung Junseop, a researcher at NH Investment & Securities, explained, "Stock trading volume remains strong," adding, "Since the market correction began in February, the average daily trading volume of domestic stocks has somewhat decreased compared to January (January 42.1 trillion KRW, February 32.4 trillion KRW, March 26.7 trillion KRW)," but noted that "the quarterly average remains high at 33 to 34 trillion KRW compared to the same period last year (14.8 trillion KRW)."

He believes that the money move trend that started last year is continuing this year as well. He stated, "The recent subscription frenzy for SK Bioscience was an example showing that demand inflow into the stock market remains solid," and explained, "Although there may be short-term fluctuations in stock trading volume, the securities industry's boom centered on retail investors appears to be ongoing."

He analyzed that the stock price is excessively undervalued compared to the improved profit levels. Since the second quarter of last year, Kiwoom Securities has maintained quarterly net profits in the 200 billion KRW range. Additionally, under a strong trading volume environment, it recorded approximately 30% retail market share in both domestic and overseas stocks, leveraging its high brand awareness and competitive non-face-to-face channels. Furthermore, it is considered relatively free from issues related to private equity funds and overseas real estate losses.

Researcher Jung emphasized, "The price-to-earnings ratio (PER) is only 4.3 times, which is at a historical low level and lower compared to other large securities firms (5.4 to 7.5 times)," adding, "Even assuming some deterioration in the macro environment going forward, the stock price is judged to be very undervalued."

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