[Click eStock] "Daishin Securities, New Real Estate Fractional Investment Business Expected"

NH Investment & Securities Report

On the 15th, NH Investment & Securities maintained a neutral investment opinion and a target price of 14,000 KRW for Daishin Securities.

The company's consolidated net profit for Q1 was 50.4 billion KRW, down 24% year-on-year but turning profitable compared to the previous quarter. This was due to strong performance in the trading division and recognition of gains from overseas real estate sales.

Trading and other profits amounted to 84.5 billion KRW, increasing 60.1% year-on-year and 92% quarter-on-quarter. The expansion of bond operation profits due to falling interest rates was a key factor. F&I's pre-tax profit was 26.2 billion KRW, down 27.2% year-on-year but turning profitable compared to the previous quarter. This was largely influenced by the recognition of 18 billion KRW in gains from the sale of Japanese real estate.

Fee income in the corporate finance (IB) division was 5.4 billion KRW, down 80.4% year-on-year and 76% quarter-on-quarter. Although there was a base effect from last year's underwriting of LG Energy Solution, the level was also lower compared to the average year. The main deal in Q1 was ‘Samki EV’, reflecting the impact of a contraction in F PF operations. Yoon Yudong, a researcher at NH Investment & Securities, explained, “Considering the current market situation, it is still difficult to leverage strengths in small and medium-sized IPOs.” The savings bank division also recorded a pre-tax loss of 19.5 billion KRW. Provisions were set aside following the fourth quarter of last year, and considering risk management in the secondary financial sector, it is expected that provisions will continue to be accumulated going forward.

However, expectations for new business are growing due to the acquisition of a real estate fractional investment platform. In March, the company acquired a 93% stake in the real estate fractional investment firm ‘Casa Korea’ for 15 billion KRW, incorporating it into the Daishin Group affiliates. Existing customers used Hana Bank accounts during public offerings, but going forward, linkage will be made to use Daishin Securities accounts. Researcher Yoon Yudong said, “We are making various efforts to revitalize operations amid a highly uncertain business environment,” adding, “Although synergy has not yet been concretized, the plan is to proceed with the existing Casa business method during the public offering in the second half of the year.”

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