Mirae Asset Securities reported earnings exceeding market expectations in the first quarter of this year (January to March), prompting other securities firms to raise their target prices for Mirae Asset Securities. It was anticipated that performance in overseas operations and the shareholder return policy would drive the Mirae Asset stock price.
Yoon Yoo-dong, a researcher at NH Investment & Securities, noted on the 9th that the investment rating for Mirae Asset Securities remains "buy," raising the target price from 13,000 won to 16,000 won. The previous closing price for Mirae Asset Securities was 12,170 won.
Yoon noted, "Mirae Asset Securities has shown the highest stock price increase among major securities firms, but considering the potential for performance improvement, there is still room for additional growth," adding, "This is due to confirming the long-awaited rebound in the overseas institutional sector while maintaining retail dominance."
In addition, target prices were raised to 15,000 won for Kiwoom Securities and Shinhan Investment & Securities, 14,200 won for SK Securities, 14,100 won for KB Securities, 14,000 won for Korea Investment & Securities and Samsung Securities, and 13,000 won for MERITZ Securities.
Commonly, performance was cited as the basis for the target price increase. Mirae Asset Securities recorded a net profit of 258.7 billion won attributable to controlling shareholders in the first quarter of this year, a 59% increase from the same period last year. Notably, despite accounting for losses related to overseas commercial real estate of approximately 100 billion won, it slightly exceeded market expectations.
In particular, the overseas subsidiary achieved results. Jang Young-im, a researcher at Hyundai Motor Securities, stated, "Mirae Asset Securities' overseas subsidiary recorded an annualized return on equity (ROE) of 10.4% in the first quarter, a significant improvement from 3.8% last year."
Although the stock price of Mirae Asset Securities has risen by more than 50% this year, there are opinions it could rise further. Ahn Young-jun, a researcher at Kiwoom Securities, commented, "While Mirae Asset Securities' stock price has surged recently, it has merely broken through a downtrend that has continued for about 18 years since reaching 37,000 won in 2007," adding, "Expanding shareholder returns in the future could easily lead to a reevaluation due to improved capital efficiency."