Hana Securities on the 11th said it is worth paying attention to Samsung Securities' retail institutional sector competitiveness this year. It kept its investment opinion at "buy (BUY)" and raised the target price to 130,000 won from the previous 120,000 won. The previous trading day's closing price of Samsung Securities was 95,600 won.
Earlier, Samsung Securities' fourth-quarter net income attributable to controlling shareholders was 216.2 billion won, 18.1% below the market consensus of 234.3 billion won. The shortfall was due to weak gains on bond valuation following rising interest rates and a 28% on-year increase in labor costs from stock price-linked performance pay.
By institutional sector, commission revenue from brokerage rose 76.4% on-year to 243.5 billion won, while the investment banking (IB) institutional sector came in at only 65.2 billion won, up 23.5% on-year, hurt by sluggish real estate PF deals. Interest revenue increased 16.4% on-year to 149.8 billion won, and trading rose 93.9% to 171.2 billion won.
Ko Yeon-su, a Hana Securities analyst, said, "Even though 2025 combined a stock market boom with an interest rate cut cycle, the share-price trend lagged due to a relatively conservative management stance."
However, this year is expected to see retail-centered earnings improvement on the back of increased transaction value. Ko said, "Brokerage and WM account for about 40% of Samsung Securities' net operating revenue," adding, "Given that the number of high-net-worth individual (HNWI) clients jumped 48.9% on-year to 3.9 million and client assets increased 42.8% to 432 trillion won, growth potential is significant as the money move into the domestic stock market continues." Ko added, "If it obtains a short-term note issuance license, business synergies between IB and retail are also expected."
In the mid to long term, the possibility of expanded shareholder returns is also being raised. Ko said, "For 2025, a dividend per share (DPS) of 4,000 won and a payout ratio of 36% are somewhat disappointing, but considering ample capital capacity, the trend of dividend expansion will continue." Even assuming a conservative payout ratio of 36%, Ko projected the 2026 DPS at 5,400 won, up about 35% from the previous year.