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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] IBK Investment & Securities upgraded its target price for Kiwoom Securities from 163,000 won to 170,000 won on August 1, maintaining a 'Buy' rating. This upgrade follows Kiwoom Securities' second-quarter earnings, which exceeded expectations and resolved concerns related to real estate project financing (PF).
Kiwoom Securities reported a 72.68% year-on-year increase in second-quarter operating profit to 312.3 billion won, surpassing the consensus estimate of 273 billion won by 14.4%. Analyst Woo Do-hyung attributed the strong performance to robust real estate PF-related fee income and improved profits from subsidiaries.
The firm's real estate PF-related reserve balance decreased from 32 billion won at the end of last year to 17 billion won in the second quarter, alleviating concerns. While there was an increase in other operating losses due to interest and borrowing costs, additional losses are expected to be limited.
Woo also highlighted that if Kiwoom Securities proceeds with an additional 80 billion won stock buyback in the third quarter, the total shareholder return rate for 2024 is expected to reach 31.1%.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
