[Click e Stock] "Mirae Asset Securities, Realizing Gains on Investment Assets"

[Asia Economy Reporter Song Hwajeong] Korea Investment & Securities maintained its 'Buy' rating and target price of 13,400 KRW for Mirae Asset Securities on the 12th, citing realized profits from various assets and continued strong performance.

Baek Dusan, a researcher at Korea Investment & Securities, stated, "Profits from several assets invested in since 2016 are being realized," adding, "There are ongoing opportunities to realize profits from various investments such as Naver Financial and Grab."

Mirae Asset Securities posted results in the third quarter that exceeded market consensus. The controlling shareholder net profit for Q3 was 340.8 billion KRW, surpassing consensus by 45%. Researcher Baek analyzed, "This was largely due to better-than-expected operating gains," noting, "Operating gains in Q3 reached 399.8 billion KRW, a 104% increase from the previous quarter, driven by fair valuation gains related to Pangyo Alphadom City and overseas companies' pre-IPO (pre-Initial Public Offering) equity investments." He added, "This quarter's pre-IPO gains came from Zomato (India) and Bukalapak (Indonesia), with many more pre-IPO profit realization opportunities expected after Q4 this year."

Commission fees from brokerage trading in Q3 were 188.5 billion KRW, down 4% from the previous quarter. Overseas stock deposit assets increased, leading to a 9% rise in overseas commission fees, but domestic commission income declined 7% during the same period due to decreased trading volume.

Financial product sales commissions increased 2% to 67 billion KRW. The overall increase in product sales balances, including a 35% rise in collective investment securities balances, drove related revenue growth. Corporate finance (IB) fees decreased 1% to 92.1 billion KRW. The company arranged acquisition financing for SK Lubricants and handled multiple IPOs including Krafton. Both personal and corporate loan income showed moderate growth, with interest income rising 9% to 101 billion KRW. Pre-tax profit from overseas subsidiaries was 23 billion KRW, down 79% due to poor operating gains and base effects from fair value evaluations in the previous quarter. Researcher Baek commented, "It is positive that the profitability of the IB and asset management divisions is structurally improving."

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