Kiwoom Securities said on the 13th that if SpaceX lists, an appraisal gain of 1.3 trillion won is expected to occur, so additional growth is anticipated in the second quarter. It maintained its investment opinion at "Buy" and raised the target price to 90,000 won from 75,000 won. Mirae Asset Securities' closing price in the previous session was 74,300 won.
Ahn Young-jun, a Kiwoom Securities researcher, said, "According to the conference call, about 804 billion won in appraisal gains related to unlisted innovative corporations were reflected in the first quarter, and if SpaceX lists in the second quarter with a corporate value of $175 billion (about 2,607 trillion won), an additional appraisal gain of 1.3 trillion won is expected."
Mirae Asset Securities' first-quarter net income attributable to controlling shareholders this year was tallied at 996.2 billion won, up 285% from a year earlier. Along with higher brokerage (commission trading) fee revenue and interest profit and loss due to a bullish stock market, the rise in investment asset values led to a sharp year-over-year improvement in results.
Brokerage fee profit and loss rose 129% from a year earlier. Domestic and overseas fee profit and loss increased 250% and 17%, respectively, from a year earlier. During the same period, domestic stock market transaction value increased 265%.
Investment banking (IB) fee profit and loss fell 22% from a year earlier. Researcher Ahn analyzed, "It appears to be because the company is pursuing a strategy of focusing on growth in segments other than the IB institutional sector."
Ahn said, "Investment asset appraisal gains appear to be the main driver," adding, "It is preparing to acquire a U.S. securities firm and is set to launch a mobile trading system (MTS) in Hong Kong in June, continuing various global moves."
As for why Mirae Asset Securities is receiving a relatively high valuation (price level relative to performance) within the securities industry, it was analyzed that the company is addressing factors that led to the industry's derating (undervaluation), such as the limits of the domestic-demand industry and high earnings volatility depending on business conditions.
Ahn said, "Further increases in SpaceX's corporate value will translate into additional earnings growth drivers," adding, "Overseas business expansion and the build-out of an integrated cryptocurrency transaction platform are expected to serve as new future growth engines."