[Click eStock] "Daishin Securities Expected to Reflect Investment Losses in Q3... Target Price Lowered"

NH Investment & Securities: "Daishin Securities Target Price Lowered to 35,000 Won"

NH Investment & Securities announced that it expects Daishin Securities to temporarily incur investment losses in the third quarter. The company lowered its target price from 40,000 won to 35,000 won, while maintaining its "buy" investment rating.

Yoon Yoodeong, an analyst at NH Investment & Securities, stated, "This reflects high domestic and overseas real estate exposure relative to capital and the resulting provisioning and loss recognition."

NH Investment & Securities forecasts that Daishin Securities’ consolidated controlling net profit will fall short of market expectations at 2.64 billion won, down 36.5% year-on-year.

The biggest reason is the performance volatility caused by the continuous expansion into domestic and overseas real estate investment. For example, in the second quarter, valuation gains from held Samsung C&T shares contributed significantly to earnings. However, as the price of the shares declined in the third quarter, a valuation loss of approximately 160 billion won is anticipated. Analyst Yoon noted, "The company appears to have made additional purchases of these shares during the quarter, and considering its previous reluctance to sell even during periods of loss, the likelihood of short-term disposal seems low."

He also said, "Around 80 billion won in provisions for European commercial real estate assets are planned in the second half of the year, although the timing is yet to be determined," adding that "Daishin Securities' project financing (PF) exposure stands at 2.03 trillion won domestically and about 1.4 trillion won internationally."

Additionally, in the wealth management (WM) division, Daishin Securities sold a large number of goal-based products in the first half, thereby expanding its pool of affluent clients. However, due to the market downturn, it is estimated that the number of clients with assets of 100 million won or more has decreased somewhat from the previous 98,000.

Meanwhile, Daishin Securities is overhauling all major trading screens—such as real-time quotes and order placement—on its home trading system (HTS) and mobile trading system (MTS), Cybos and Creon. The company continues to enhance after-market linkage and to upgrade its retail platform.

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