[Click eStock] "Samsung Securities, Next Year's Net Profit Estimate Down... Target Price Down"

[Asia Economy Reporter Hwang Yoon-joo] On the 16th, SK Securities downgraded its net profit forecast for Samsung Securities for next year. Accordingly, the investment opinion was lowered to 'Buy' with a target price of 44,000 KRW.

Researcher Koo Kyung-hoe of SK Securities stated, "Considering the decrease in stock market trading volume and rising interest rates, we have lowered Samsung Securities' 2023 net profit estimate to 609 billion KRW."

However, Samsung Securities was selected as a preferred stock within the securities sector. Researcher Koo explained, "Although there is a purchase commitment burden exceeding 40% of equity capital, due to the high concentration of housing in the metropolitan area and management of LTV ratios, we judge the relative risk to be low."

He added, "If the real estate market downturn intensifies and the real estate PF issues in the financial sector spread further, the credibility of securities firms will become an important factor," and "In that process, Samsung Securities will belong to the top-tier group."

Researcher Koo further emphasized, "For the time being, within the securities sector, it is necessary to focus on the competitiveness of the WM division, where Samsung Securities has strengths, and its low risk, rather than IB or brokerage."