[Click eStock] "Samsung Securities, Combination of Stability, Valuation, and Dividend"

[Asia Economy Reporter Oh Ju-yeon] Kiwoom Securities on the 8th gave a 'Buy' rating and a target price of 50,000 won for Samsung Securities, stating that it has secured market dominance in the overseas stock sector with high growth and profitability, which could be a driving force for future profit growth, and that it also has valuation attractiveness and a high dividend payout ratio.

Kiwoom Securities diagnosed that after the outbreak of the novel coronavirus disease (COVID-19), individual stock investment surged due to the government's active liquidity expansion policy, leading to rapid growth in the brokerage commission market. In particular, it analyzed that the preference for overseas stock investment increased mainly among those in their 20s and 30s, directly contributing to the improvement of securities firms' earnings.

Researcher Seo Young-soo of Kiwoom Securities analyzed that from the perspectives of dividend yield and valuation, Samsung Securities and NH Investment & Securities have high investment attractiveness within the securities industry, and in terms of maintaining market dominance in overseas stocks, Samsung Securities and Mirae Asset Daewoo are attractive. Considering the overall situation, Samsung Securities was selected as the top pick.

First, from a valuation perspective, Mirae Asset Daewoo and Korea Financial Group were evaluated to have had high relative returns over the past six months due to improved market conditions and revaluation of KakaoBank's equity value, respectively, whereas large firms such as Samsung Securities and NH Investment & Securities were relatively sluggish. As a result, valuation attractiveness has relatively increased at present, and it was seen as an unusual stock price differentiation that improved valuation attractiveness.

From the dividend payout ratio perspective, it was emphasized that Samsung Securities' dividend payout ratio is gradually increasing.

Researcher Seo said, "The average dividend payout ratio over the past three years is 36%, the highest among large firms," and "even considering last year's payout ratio, a dividend yield of 7.1% is expected."

He also mentioned that Samsung Securities holds market dominance in the high-growth overseas stock sector, which is expected to be a driving force for future profit growth.