[Click eStock] "Samsung Card, High Stability Amid Weak Market Conditions"

On the 24th, SK Securities issued a 'Buy' rating and set a target price of 36,000 KRW for Samsung Card.

SK Securities highly evaluated Samsung Card's stability amid the sluggish card industry. Despite the negative current conditions in the card sector, such as lowered merchant fee rates, increased interest expenses, and deteriorating asset quality, the impact on Samsung Card is considered limited. A solid top line is expected due to a strategy focused on individual credit sales and increased consumer spending driven by inflation. Additionally, the long-term funding structure is expected to mitigate the impact of rising interest rates. Furthermore, Samsung Card's high surplus capital, which can hinder efficient capital use in favorable market conditions, is analyzed to contribute to enhanced stability by absorbing risks and supporting shareholder returns during the current phase of increased uncertainty.

Seol Yong-jin, a researcher at SK Securities, stated, "Samsung Card's stock price is unlikely to be highly volatile due to its stable business structure centered on new credit sales, low free float, and the absence of an appropriate peer group." He added, "With stable earnings and a high dividend payout ratio, dividends are expected to maintain at least the 2022 level, providing a consistent dividend yield of about 8% based on the current stock price, making it a suitable stock for dividend-focused long-term bond-type investment."

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