[Click e Stocks] Will Korea Financial Group Rise Next Month?

[Asia Economy Reporter Junho Hwang] SK Securities maintained a 'Buy' rating on Korea Financial Group. Although the stock price declined in May, it was viewed as a correction following a sharp rise last month, and the target price was also maintained at 125,000 KRW.

SK Securities sees Korea Financial Group as a non-bank holding company with the most advantageous corporate structure for diversifying revenue sources among securities stocks. Accordingly, it analyzed that the company has achieved excellent performance in both earnings and stock price over the past 10 years. Furthermore, although not a major shareholder, the rapidly increasing profits of KakaoBank, which are recognized as equity-method valuation gains, were also positively evaluated.

Korea Financial Group's first-quarter earnings this year showed a broad-based improvement across all sectors. Breaking down Korea Financial Investment's revenue by segment, asset management fees increased by 10% (QoQ), IB income rose by 22%, and securities operation segment recorded a 132% increase, demonstrating strong growth.

Researcher Kyung-Hoe Koo of SK Securities Research Center stated, "Although recent stock market trading volume has slightly decreased compared to 1Q, considering the broad-based improvement across all sectors, annual earnings are expected to be strong."

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