Korea Investment Securities forecasted on the 9th that Mirae Asset Securities will record results that exceed market expectations for the second quarter of this year (April to June). However, it adjusted its investment opinion to 'neutral,' judging that it is difficult for the stock price to rise further after a substantial increase recently. No target stock price was presented.
Baek Dusan, a researcher at Korea Investment Securities, estimated Mirae Asset Securities' second-quarter net profit at 299.1 billion won, which is about 25% higher than market expectations.
Baek noted that the trading institutional sector probably boosted Mirae Asset Securities' performance. He stated, 'Due to the robust domestic capital market and strong revenue-generating capabilities of investment purpose assets, the trading sector's profit and loss is likely to have increased by 20% from the previous quarter, reaching 392.2 billion won.'
Additionally, Baek assessed that the brokerage commissions, overseas stock commissions, and investment banking fees of Mirae Asset Securities likely improved compared to the first quarter.
However, Baek expressed difficulty in maintaining a 'buy' opinion given that Mirae Asset Securities' stock price has risen sharply recently. The stock price has jumped more than 150% since the beginning of this year.
Baek stated, 'Considering the strong performance, even adjusting the return on equity from 9.1% to 9.3%, the current price-to-net worth ratio (PBR: market capitalization ÷ net worth) is 0.92 times,' adding that 'even factoring in expectations for a share repurchase policy, the potential for further increases in stock price is limited.'
Baek stated, 'The downside of the stock price will be solid,' noting that 'this year's earnings per share growth rate is good at 23%, and the driving force of domestic stock market policies is also robust.'