[Click eStock] "Kiwoom Securities, First Value-Up Disclosure... Minimal Impact on Stock Price"

[Image source=Yonhap News]

Seomseong Securities evaluated on the 29th that Kiwoom Securities was the first listed company to specifically disclose a value-up announcement. However, this announcement is a detailed part of the 'Mid- to Long-term Corporate Value Enhancement Plan' from last March, and the impact on the stock price is expected to be minimal.

Jung Min-ki, a researcher at Samsung Securities, stated, "Despite the inherent volatility of the securities industry, this is a significant case within capital market events as it is the first listed company, as well as in the financial sector, to concretize a corporate value enhancement plan."

Kiwoom Securities presented three major goals for the next three years. These are summarized as a Return on Equity (ROE) of 15%, a shareholder return ratio of over 30%, and a Price-to-Book Ratio (PBR) of over 1.

Researcher Jung analyzed, "Kiwoom Securities' average ROE over the past five years was 16.9%, and excluding the decline to 8.1% due to the loss from unpaid receivables related to Youngpoong Paper in 2023, it consistently recorded over 10%. As of the first quarter of this year, its standalone equity capital was 4.4 trillion KRW, far exceeding the requirements for a mega IB license, indicating limited need for additional capital increases and high policy visibility."

He added, "This value-up announcement is a detailed part of the corporate value enhancement plan disclosed in the fair disclosure on March 13, so the actual impact on the stock price is expected to be minimal."

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