[Click eStock] Samsung Securities, Earnings Rebound in Focus 'Target Price Raised by 20%'

On the 13th, Korea Investment & Securities maintained a buy rating on Samsung Securities and raised the target price by 20% from 40,000 won to 48,000 won. This is a result of revising the 2023 net profit upward by 35% to 648.4 billion won.

Baek Doosan, a researcher at Korea Investment & Securities, explained, "Compared to IB, Samsung Securities has a high earnings sensitivity centered on brokerage and trading. With the expansion of market trading volume and the creation of favorable operating conditions, a sharp earnings rebound is expected. Along with the earnings improvement, the expected dividend yield for 2023 has also improved from 5.4% last year to 7.7% this year."

Samsung Securities' first-quarter controlling net profit is expected to be 191 billion won, exceeding the consensus by 35%. This is thanks to improvements in brokerage and bond-centered operating profits. First, pure trust fees are estimated to have increased by 47% from the previous quarter to 114.7 billion won. The average daily market trading volume rose 35% from the previous quarter to 17.6 trillion won, and the contract market share also improved by 0.6 percentage points to 7.3%.

Financial product sales revenue is estimated to have increased by 15% from the previous quarter to 78.1 billion won. The quarterly ELS redemption amount rose 21% from the previous quarter to 747.3 billion won, indicating an improvement in early redemption profits.

Operating profit and financial balance are estimated at 210.5 billion won, an increase of 181.7 billion won from the previous quarter. This is believed to be due to generally favorable conditions in bond operations, such as the credit spread, which had rapidly expanded in the previous quarter, narrowing this quarter. Researcher Baek said, "The size of related investment assets also seems to have been flexibly expanded to some extent."

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