[Click eStock] Korea Financial Group Maintains Top Pick Status in Industry

[Asia Economy Reporter Lee Seon-ae] Daishin Securities maintained its buy rating and target price of 115,500 KRW for Hanwha Financial Group on the 6th. It also maintained its top pick within the industry.

First-quarter net profit is expected to nearly meet the consensus of 253.7 billion KRW. The average daily trading volume in the first quarter set a new historical high again, recording 33.3 trillion KRW, a 21.2% increase compared to the previous fourth quarter, resulting in continued strong brokerage commission income.

With unprecedented liquidity, not only BK but also product sales have recently been strong. Retail overall performance is expected to be quite favorable due to increased sales of not only public funds but also private funds and wrap accounts.

IB maintained a fairly solid level despite the impact of COVID-19 last year, and with recent co-lead management of SK Bioscience and increased PF financial advisory, it is expected to maintain over 100 billion KRW. It is understood that deals such as data centers and logistics centers are being steadily executed due to the reduction of overseas and domestic residential real estate investments.

Park Hye-jin, a researcher at Daishin Securities, said, "BK, WM, and IB will be quite solid, but the key to this quarter's performance is trading income. Interest rates rose in the first quarter, and especially in March, with increased volatility, bond management income is expected to decrease significantly," adding, "However, it is estimated that losses will not be recorded to the extent seen in the past."

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