[Click eStock] "Ajou Capital, Earnings and Dividends That Meet Expectations"

[Asia Economy Reporter Ji-hwan Park] NH Investment & Securities maintained its 'Buy' rating and target price of 15,000 KRW for Aju Capital, expecting the company to once again deliver earnings and dividends that meet expectations.

Joonseop Jung, a researcher at NH Investment & Securities, stated, "Since 2017, Aju Capital's operating and funding environment has steadily improved every year," and added, "An 11.1% profit increase is expected this year." He explained that the expected dividend yield for this year is 5.4%, indicating a high likelihood of the stock being recognized as a stable dividend stock toward the end of the year.

Researcher Jung said, "Despite the challenging environment caused by the COVID-19 pandemic, solid earnings have continued," and "the second quarter net income attributable to controlling interests was 35.5 billion KRW, a 21.5% increase compared to the same period last year," he explained.

Although new business decreased by 4.3% compared to the same period last year, the used car and corporate finance sectors, which are the company's focus areas, continued double-digit growth of 10.5% and 11.8%, respectively.

Researcher Jung emphasized, "Despite Aju Capital's return on equity (ROE) being 13%, the price-to-book ratio (PBR) is only 0.78," and added, "It is considered a stock with stable earnings and high dividend yields."

Meanwhile, Aju Capital has Aju Savings Bank as its subsidiary.