[Click eStock] "Mirae Asset Securities, IB Profit Recovery... Strong Q1 Earnings Expected"

[Asia Economy Reporter Minji Lee] Daishin Securities maintained a buy rating and a target price of 13,000 KRW for Mirae Asset Securities on the 8th.

The first-quarter net profit is estimated to have grown 124% year-on-year to 241.4 billion KRW, in line with the market expectation of 247.1 billion KRW. With the average daily trading volume in the first quarter reaching 33.3 trillion KRW, a 21.2% increase compared to the previous fourth quarter, brokerage commission revenue is expected to perform well.

IB (Investment Banking) related revenue, which had increased in 2019, showed a sluggish performance last year due to restrictions on overseas investments caused by the COVID-19 pandemic. However, with multiple IPOs such as SK Bioscience and SK IT Technology as joint lead managers, a gradual recovery is expected this quarter.

Researcher Hyejin Park of Daishin Securities said, “IB revenue is expected to increase to around 100 billion KRW, benefiting as the lead manager for Krafton,” adding, “There is a high possibility that Chinese companies invested in, such as Didi Chuxing and DJI, will go public this year.”

Although bond management income is expected to decline due to increased interest rate volatility last month, operating income in January and February was favorable, and especially in the equity management sector, valuation gains are expected to be significantly reflected, resulting in strong trading income performance.

Overseas subsidiaries’ performance was weak in the fourth quarter of last year due to provisions related to the Las Vegas resort investment, but it is expected to recover to the usual level of around 60 billion KRW this quarter. The company’s pre-tax profit from overseas subsidiaries last year was 201 billion KRW.

Researcher Park explained, “A one-time factor of 60 billion KRW will be reflected as amortization of brand operating value due to the company name change,” and added, “The application for an issuance license is in the final review stage and is expected to be approved as early as April.”

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