[Click eStock] "Kiwoom Securities, a time to shine with securities platform capabilities"

Daishin Securities Report

[Asia Economy Reporter Minji Lee] Daishin Securities maintained a buy rating and a target price of 115,000 KRW for Kiwoom Securities on the 10th. The company was positively evaluated for maintaining an overwhelming position as a securities platform, with an increasing share of overseas stock trading.

Kiwoom Securities' net profit in the second quarter was 108.5 billion KRW, down 23% from the previous quarter. This was due to poor performance caused by expanded operating losses amid a sharp rise in interest rates and sluggish indices.

The product operation loss, which includes stock valuation losses, IB valuation losses, and bond operation losses that include stock operation gains and losses, recorded a loss of 66.6 billion KRW. Although dividends and distributions (28.6 billion KRW) were reflected, operating losses expanded significantly to 91.4 billion KRW. Interest income increased due to the adjustment of customer deposit-related valuation gains to interest income, while operating gains and losses decreased. Customer deposit valuation gains were 29.7 billion KRW, and considering this, the recurring loss was about 37 billion KRW.

Interest income recorded 159.4 billion KRW, a 28% increase compared to the same period last year. The credit loan balance also increased to 3.4 trillion KRW, and despite a decrease in transaction volume, BK commission income performed well at 181.4 billion KRW. This was due to the overseas stock trading contract-based market share reaching a record high of 35.3%. IB division revenue was 35.6 billion KRW, down 10% from the same period last year. Although ECM and DCM revenues declined due to a contraction in the issuance market, performance fees and structured finance fees remained solid, boosting results.

Hyejin Park, a researcher at Daishin Securities, said, “Transaction volume has been supported at the level of 11 trillion to 13 trillion KRW for two months, and considering that the average daily trading volume of the Korean stock market over the past 10 years is 9 trillion KRW, the additional decline will not be significant.” She added, “Overseas stock trading has also been preempted, maintaining an overwhelming position as a securities platform, and the scheduled launch of overseas stock trading CFDs in the second half of the year is also positive.”

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