[Click eStock] "Hana Financial Group Expected to Deliver Record Earnings... Target Price Raised"

Kiwoom Securities Raises Target Price to 190,000 Won

On September 9, Kiwoom Securities raised its target price for Hana Financial Group to 190,000 won from the previous 175,000 won while maintaining its "Buy" investment rating.

According to Eun-Gab Kim, an analyst at Kiwoom Securities, "Hana Financial Group has recently announced a new value enhancement plan, raising its return on equity (ROE) target from above 10% to 12%, and resetting its common equity tier 1 capital ratio management goal from the previous 13-13.5% range to above 13%." He added, "The company also introduced a shareholder return policy linked to growth and ROE, using the formula 1-(RWA growth rate/ROE) for the shareholder payout ratio."

He projected a "record-high" performance for the third quarter. Previously, the cumulative consolidated net profit for the first half of this year reached 2.4 trillion won, hitting an all-time high despite significant cost factors. Kim explained, "This is the result of a steady increase in net interest income combined with improvements in non-interest income," adding, "The company is expected to make another attempt at a record quarterly performance in the third quarter."

Kim further stated, "Compared to the same period last year, first-half net profit growth rates by affiliate were 1.7% for banking, 156% for securities, 600% for capital, and 14% for card, highlighting marked improvements in non-banking segment performance." He noted, "The proportion of profit from non-banking operations rose from 12% last year to 19% in the first quarter of this year, and even when including large, one-off factors in the second quarter, credit cost ratio is being managed at a very low level of 0.29%."

This content was produced with the assistance of AI translation services.