[Click E-Stock] "NH Investment & Securities, Target Price Up 19%...Earnings Growing"

On February 10, Kiwoom Securities raised its target price for NH Investment & Securities by 19.62% to 32,300 won and maintained its "Buy" investment rating, after the company reported fourth-quarter results last year that exceeded market consensus forecasts.

NH Investment & Securities posted fourth-quarter 2025 net income attributable to controlling shareholders of 283.5 billion won, up 158% from the same period a year earlier. This figure significantly beat the consensus. Ahn Youngjun, an analyst at Kiwoom Securities, said, "The company delivered strong results thanks to robust brokerage performance driven by higher stock market trading value, increased interest income on the back of asset growth, and operating gains that were solid compared with previous concerns."

The brokerage fee income of NH Investment & Securities rose 98% year-on-year to 193.2 billion won, as trading value increased amid a booming domestic stock market. Commission income from agency trading increased 126% in the domestic market and 37% in overseas markets, respectively.

Investment banking (IB) fee income came in at 104 billion won, down 12% from a year earlier. Kiwoom Securities interpreted this as the result of a base effect, as well as a decline in debt guarantee fees, which account for a large share of IB revenue.

Net interest income rose 38% year-on-year to 242.5 billion won due to asset growth, while trading and other income jumped 556% over the same period to 118.8 billion won.

Kiwoom Securities raised its target price for NH Investment & Securities after taking into account capital growth and changes in earnings forecasts. Ahn said, "The paid-in capital increase carried out last year is now feeding through to earnings, so we reflected the capital increase, as well as the upward revision to earnings forecasts driven by higher domestic stock market trading value."

He continued, "Going forward, the key will be whether the company can stand out in the emerging funding market by leveraging its strengths in corporate finance," adding, "It will be important to watch whether it can enhance profitability through additional borrowing, supported by capital growth and the approval of its Integrated Investment Management Account (IMA)." Kiwoom Securities estimates NH Investment & Securities' dividend yield for this year to be in the mid-6% range.

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