[Infostock Daily= Reporter An Hoe Hyun] Kiwoom Securities maintained investment opinion 'BUY' on DGB Financial Group and raised its target price by 10% from 7,500 won to 8,300 won.
"Despite market concerns, the loan-loss cost ratio will remain stable," the company said, adding "The government's policy support will significantly reduce the possibility of manufacturing defaults and limit additional costs due to active provisions in the second quarter. The trend of continued margin decline has been somewhat over. We expect the upward trend to turn around in the fourth quarter."
Non-banking sectors such as securities and capital are expected to continue to perform well for the time being. "The main reason is the increase in retail profits due to strong performance in the corporate finance(IB) division and improved stock market environment," the company said.
"It is absolutely undervalued in terms of valuation, and it will be possible to maintain dividends close to the previous year's level even in a conservative way," the company said, adding, "We will maintain the investment opinions BUY."
Reporter An Hoe Hyun ahh@infostock.co.kr
