[Click eStock] Kiwoom Securities Expects to Surpass Last Year's Best Performance, 'Target Price Up'

[Asia Economy Reporter Lee Seon-ae] IBK Investment & Securities announced on the 19th that it maintains a 'Buy' rating on Kiwoom Securities and raises the target price from the previous 170,000 KRW to 190,000 KRW.

Kim Eun-gap, a researcher at IBK Investment & Securities, explained the reason for the target price increase, stating, "The price-to-book ratio (PBR) target rose from 1.2 times to 1.34 times due to an increase in the return on equity (ROE) forecast, and the price-to-earnings ratio (PER) based on the 2021 forecast is low at 4.5 times. As earnings improvements have followed the stock price rise, the low PER condition continues, maintaining valuation attractiveness. Last year, retail investor influence in the stock market expanded, strengthening the retail base, and the customer base is still expanding."

Kiwoom Securities achieved an operating profit of 954.9 billion KRW and a net profit of 693.9 billion KRW on a consolidated basis last year. This represents increases of 102% and 91%, respectively, compared to 2019. Net profit is expected to increase by 15.9% to 804.1 billion KRW this year. At the end of last year, the number of active accounts was 2.55 million, approximately 150% higher than at the end of 2019. The number of new and active accounts continues to grow in 2021, which is expected to enhance profit stability despite market trading volume volatility.