Samsung Securities maintained its target price at 160,000 won, analyzing that Kiwoom Securities proved stable earnings power in the third quarter. Investment opinions also remained 'buy'.
"Kiwoom Securities' consolidated net profit in the third quarter was KRW 232.7 billion, exceeding the market expectation of KRW 189.7 billion.
It is a good performance considering the stagnant transaction amount and rising interest rates this quarter," said Samsung Securities on the 10th.
"Profits from the retail sector rose 4.7% QoQ to KRW 231.9 billion due to improved interest income stemming from increased credit balances, while profits from corporate finance (IB) also came to KRW 65.9 billion, up 21.6% from the previous quarter due to strong alternative investment and project financing (PF) and initial public offering (IPO) sectors," Samsung Securities added.
Samsung Securities, however, predicted that Kiwoom Securities'operating profit for next year will decrease compared to this year. Samsung Securities analyzed, "Next year, Kiwoom Securities' operating profit is expected to be around 720 billion won, down 20% from this year.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
