Korea Investment & Securities maintained its investment opinion of "neutral" on Samsung Card. Although the net profit for the second quarter is expected to fall below market forecasts, it is determined that the stock price has already risen due to expectations of support for people's livelihoods from the new government.
On the 2nd, Korea Investment & Securities announced that Samsung Electronics' net profit for the second quarter is expected to be 158.9 billion won, which is 7% lower than market forecasts. It is also expected to decrease by 14% compared to the same period last year.
Baek Du-san, a researcher at Korea Investment & Securities, noted that "the reduction of 20 billion won in bad debt expense due to credit relief in the same period last year acted as a base effect," and added that "the reduction in the affiliate fee rate from February has been reflected."
Korea Investment & Securities assessed that it is a time requiring additional monitoring of the trends in asset soundness and the structural growth of credit sales in the industry.
Researcher Baek forecasted that "the bad debt ratio for the second quarter is expected to rise by 3 basis points (1 basis point = 0.01 percentage point) compared to the previous quarter and by 41 basis points compared to the same period last year," noting that "the delay in economic recovery has deteriorated customers' repayment capacity."
There is also a diagnosis that there is little room for additional stock price increases. Researcher Baek said, "The improvement in conditions for self-employed people is expected to benefit asset soundness, and the stock price has risen as much as the KOSPI in the second quarter."