NH Investment & Securities said on the 31st that for Kiwoom Securities, the expansion in trading value is continuing in the fourth quarter following the third quarter, and analyzed that with no earnings base burden through the first quarter of next year, the share price is likely to trend upward. It maintained an investment rating of Buy and a target price of 3.8 million won. Kiwoom Securities' previous closing price was 299,500 won.
Kiwoom Securities' third-quarter consolidated controlling net profit this year came in at 321.9 billion won, up 52% from a year earlier. This beat the consensus (market forecast).
Brokerage fee profit and loss also totaled 174 billion won, up 31.2% from a year earlier. Although trading value expanded, overall market share fell. Domestic stock share came in at 27% due to trading centered on KOSPI large caps and reaching the credit balance limit. Earlier, in the second quarter this year, domestic stock share was 30%.
Researcher Yun Yu-dong at NH Investment & Securities said, "If the KOSDAQ market rebounds going forward, we expect market share to recover," and noted, "Overseas stock market share declined due to aggressive sales by other firms."
Kiwoom Securities, to strengthen retail, is offering an installment investment service and a simple mode for its mobile trading system (MTS), and is also preparing a community.
The researcher said, "The due diligence for issuance of short-term notes was recently completed, so if new licensing is granted, sales are planned from next year," adding, "Kiwoom Securities aims to go beyond a simple stock trading platform to strengthen wealth management (WM), and in the process, diversification of financial products is expected."
Kiwoom Securities is also set to announce a three-year shareholder return plan. The researcher explained, "Within the payout ratio, we plan to put more weight on dividends than on treasury stock," and said, "That is because the price-to-book ratio (PBR) already exceeds 1 time and we are also mindful of the separate taxation issue on dividend income."
Meanwhile, the 60 billion won in special dividends received from Kiwoom Asset Management in the second quarter this year is said to be slated for use as shareholder return funds. There are no additional dividend plans for subsidiaries within the year.