[Click eStock] Mirae Asset Securities, Steady Performance Through Capital Utilization

[Asia Economy Reporter Hwang Junho] On the 23rd, IBK Investment & Securities maintained the target stock price of Mirae Asset Securities at 14,000 KRW, stating that it is steadily generating profits based on its capital strength.

Mirae Asset Securities' cumulative consolidated net profit for the third quarter of this year was 975.7 billion KRW. This surpassed the annual consolidated net profit in the early 800 billion KRW range in 2019. Following the record consolidated net profit of 343.7 billion KRW in the second quarter, the third quarter also recorded 340.8 billion KRW. However, although commission income decreased due to a decline in stock market trading volume compared to the first quarter, operating profit improved and strong performance in the IB division helped increase the company's overall profit scale. The consolidated net profit for this year is expected to increase by 40% year-on-year to 1.15 trillion KRW.

Mirae Asset Securities' investment assets amount to 8 trillion KRW, and debt guarantees are approximately 3.7 trillion KRW. It holds Pre-IPO investment projects expected to realize profits in the future, including Chinese drone company DJI, Southeast Asian ride-sharing service Grab, and Naver Financial. It has also invested in ride-sharing services, online markets, and grocery/food delivery businesses.

Researcher Kim Eungap of Mirae Asset said, "Despite the sluggish market conditions due to the decline in trading volume, as seen in the increase in profit scale in the 2nd and 3rd quarters, investment-related income plays a role in enhancing the overall profit stability when commission income is weak," adding, "Based on capital strength, we believe that steady profits are being generated from invested projects, and through diversification of investment targets, the stability of profits is expected to gradually increase."