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Photo = NH Investment & Securities |
[Alpha Biz= Reporter Kim Sangjin] Korea Investment & Securities upgraded its investment rating on NH Investment & Securities from Neutral to Buy on July 12th, setting a target price of 18,000 won.
According to Korea Investment & Securities, "The key rationale behind the upgrade is the turnaround in performance. Additional losses in real estate finance are limited, and performance in the IB and asset management sectors is clearly improving due to the active capital market. This year's annual net profit has been revised up by 8% to 749.1 billion won compared to previous estimates, marking a 35% increase year-on-year. Expansion of shareholder returns is also anticipated. Improved profitability and solidified management have enhanced shareholder value. Considering additional buybacks and cancellations of treasury stocks early next year, the expected shareholder return rate for 2024 is 48%, which is notably high among domestic financial stocks. Therefore, this year's expected dividend yield of 6.9% is seen as attractive."
Korea Investment & Securities also expects NH Investment & Securities to exceed consensus with a second-quarter net profit of 1,835 billion won, up 5% from estimates and a 14% increase from previous estimates. They attribute this to minimal additional provisioning for real estate project financing (PF) and strong performance in the IB and asset management sectors.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
