[Click eStock] "Kiwoom Securities Continues Record-Breaking Performance Streak in Q3"

[Asia Economy Reporter Ji-hwan Park] BNK Investment & Securities evaluated on the 14th that Kiwoom Securities is expected to continue its record-high performance in the third quarter of this year and that further profit expansion as a comprehensive financial securities company remains valid. While maintaining a 'Buy' investment rating, the target price was lowered to 150,000 KRW reflecting a slowdown in profit momentum due to a decrease in trading volume.

Kim In, a researcher at BNK Investment & Securities, stated, "Kiwoom Securities is expected to record controlling shareholder net profit exceeding 200 billion KRW for six consecutive quarters in the third quarter," adding, "the decrease in custody fees and the reduction in product (including derivatives) and other related profits are due to the base effect from the same period last year and the decline in the stock market and rise in bond yields since September.

However, the trend of increasing interest income and stable securities management (expansion of CB and BW investments) are expected to sustain solid profit growth exceeding 200 billion KRW per quarter. Due to the decrease in average daily trading volume and number of trading days, custody fees are expected to decrease by 7.7% quarter-on-quarter and 9.1% year-on-year, but the increase in investment banking (IB) and project financing (PF) related fees, which rose significantly this year, is expected to continue.

The premium as a platform securities company and the highest return on equity (ROE) within the financial sector stand out as strengths. Researcher Kim In emphasized, "Maintaining the premium as a platform securities company and additional profit expansion as a comprehensive financial investment business operator securing 4 trillion KRW in equity capital remain valid," adding, "Despite having the highest ROE in the financial sector exceeding 20% for two consecutive years, the price-to-book ratio (PBR) is only 0.8 times."

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