[Click e-Stock] Mirae Asset Securities Expected to Benefit from Aggressive Investments and Overseas Subsidiary Synergies

Kyobo Securities Maintains Target Price of 80,000 Won for Mirae Asset Securities

On May 19, Kyobo Securities maintained its "Trading Buy" recommendation and target price of 80,000 won for Mirae Asset Securities, citing expectations of increased performance driven by aggressive investments and synergies from the expansion of its overseas subsidiaries.

Kim Ji-Young, a researcher at Kyobo Securities, stated, "Mirae Asset Securities' consolidated net profit for the first quarter of this year was 1.019 trillion won, marking increases of 74.2% quarter-on-quarter and 288.0% year-on-year." She explained, "This was due to higher commission income from brokerage and financial product sales, increased trading and investment banking (IB) profits, as well as increased equity method and investment asset gains including contributions from SpaceX."

Kim added, "Brokerage commission income in the first quarter reached a record high of 459.4 billion won, driven by the strong domestic stock market and continued custody fee income from overseas equity-related transactions." She continued, "Trading gains in the first quarter amounted to 405 billion won, up 82.5% quarter-on-quarter and 24.3% year-on-year, with consolidated proprietary investment (PI) fair value gains reaching approximately 804 billion won, the highest ever."

She also noted, "First-quarter pre-tax net profit from overseas subsidiaries totaled 243.2 billion won, up 22.1% quarter-on-quarter and 105.9% year-on-year, as both advanced and emerging markets saw solid profit growth."

Kim emphasized, "With the domestic stock market booming, annual profit improvement is expected for Mirae Asset Securities. The company is projected to see further performance growth through active investment activities and synergies from expanding overseas subsidiary operations." She further highlighted, "Based on solid results, the company is also expected to implement active shareholder return policies such as additional share buybacks alongside future dividends."

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