Shinhan Investment Corp. announced on August 5 that it has lowered its target price for Samsung Securities from 160,000 won to 130,000 won, reflecting a normalization of trading volumes in the second half of the year despite strong performance in the second quarter. However, the firm maintained a 'buy' rating, citing positive evaluations of Samsung Securities' capital utilization roadmap and the potential for increased shareholder returns following its separate equity capital surpassing 8 trillion won, which meets the requirements for comprehensive investment accounts (IMA).
Lim Hee-yeon, a researcher at Shinhan Investment Corp., stated, "It is important to focus on the progress of the capital utilization roadmap rather than the absolute level of quarterly profits," adding that the company has proposed a virtuous cycle structure for enhancing profitability and expanding shareholder returns through capital increases.
He noted that Samsung Securities' net profit attributable to shareholders for the second quarter reached 488.2 billion won, a 108.1% increase compared to the same period last year. Although this figure slightly fell short of the firm's estimates and market consensus, it met expectations when excluding the impact of educational taxes.
Additionally, Lim reported that brokerage fees surged by 160.2% year-on-year, with trust fees amounting to 323.7 billion won for domestic stocks and 116.1 billion won for overseas stocks. Retail customer assets increased to 652.4 trillion won.
He also highlighted that wealth management (WM) fees rose by 200.4%, with net fees from wrap accounts growing significantly to 49.5 billion won. Retail financial product deposits expanded to 101.5 trillion won, while retirement pensions reached 28.1 trillion won.
Lim further analyzed that the average balance of credit loans increased to 56 trillion won, and the financial margin remained robust due to the expansion of customer deposits. He emphasized that a conservative risk management approach has secured profit stability.
Looking ahead, he projected that the expected return on equity (ROE) for 2026 will be 19.4%, with a price-to-book ratio (PBR) of 1.0. If the company maintains its status as a high-dividend enterprise meeting government requirements for dividend separation taxation, the expected year-end dividend per share (DPS) is forecasted to be 6,500 won, resulting in a dividend yield of 6.6% and a payout ratio of 35.5%.
* This article has been translated by AI.
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