NH Investment & Securities on the 12th said Samsung Securities is expected to account for about 1% of Korea's daily transaction value as it officially opens an integrated foreign investor account service with IBKR. It kept its recommendation at buy and raised the target price 20% to 180,000 won from 150,000 won.
NH Investment & Securities said Samsung Securities had maintained a conservative capital deployment stance, drawing relatively less attention from the market. However, it said investor sentiment improved after Samsung Securities on the 7th preemptively opened an integrated account with IBKR.
Researcher Yoon Yudong at NH Investment & Securities said, "As it officially opens an integrated foreign investor account service with IBKR, it is estimated to account for about 1% of Korea's daily transaction value," and added, "Over the long term, it is also aiming to offer exchange-traded fund (ETF) products."
Yoon said, "As we have seen in the past in overseas stock markets, first-mover advantage is crucial in a new market," and added, "With competitors preparing to enter quickly, securing an early lead will be key."
On a consolidation basis in the first quarter this year, Samsung Securities' consolidated net profit attributable to controlling interests was 450.9 billion won, up 81.5% from a year earlier.
Yoon said Samsung Securities is actively using the favorable environment of a rising market to strengthen product competitiveness in the retail business.
It is maximizing strengths in its core business by increasing the share of investment products such as stocks and wrap accounts in the portfolio, expanding family office clients, continuing to attract corporate client assets through asset management services for corporate executives and employees, and raising the level of private bankers (PB).
Yoon said, "It is maintaining its mid-to-long-term goal of achieving a 50% annual dividend payout ratio and is expected to meet the requirements for separate taxation of dividend income over the next two years."
Yoon added, "With margin balances at 660 billion won, using about 90% relative to stand-alone capital, the room for further expansion is limited."