[Click eStock] "Mirae Asset Securities, Overseas Investment Asset Impairment Loss Unavoidable... Expectation for Shareholder Return Measures"

Heungkuk Securities on the 22nd newly issued a 'Buy' investment opinion and a target price of '8,500 KRW' for Mirae Asset Securities.

In the third quarter, Mirae Asset Securities' net income attributable to controlling shareholders recorded 77 billion KRW, down 26% compared to the same period last year. There were real estate-related losses of about 60 billion KRW from the State Farm Central Headquarters in Dallas, USA, and about 40 billion KRW from the Majung Tower in France. Additionally, due to the failure of the CJ CGV convertible bond issuance, Heungkuk Securities had to underwrite about 200 billion KRW of forfeited shares, resulting in an investment asset valuation loss in the 10 billion KRW range.

In a high-interest-rate environment, impairment losses on overseas equity investment assets are expected to increase further. However, the timing of the first interest rate cut by the U.S. Federal Reserve is anticipated to be brought forward to around the second quarter of next year. If the market environment improves and the value of assets with valuation losses recovers, profitability improvement can be expected.

Nam Young-tak, a researcher at Heungkuk Securities, said, "Since October, Mirae Asset Securities has been conducting share buybacks to return value to shareholders and stabilize the stock price, which will act as a factor to withstand downward pressure on the stock price caused by investment asset loss risks." He added, "In 2024, a new three-year shareholder return plan is expected to be announced, with an announcement of a total shareholder return ratio (dividends + treasury stock cancellation) exceeding 30%."

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