[Click eStock] "Samsung Securities Reflects Large-Scale Provisions in Q4"

Meritz Securities stated on the 19th that Samsung Securities' fourth-quarter earnings fell short of consensus (average estimate) due to the reflection of large-scale provisions, but highlighted that the risk is lower compared to other companies and there remains an expectation of industry improvement. The investment rating was maintained at 'Buy.'

Samsung Securities reported a controlling shareholder net loss of 7.2 billion KRW in the fourth quarter, turning to a deficit compared to both the previous year and the previous quarter. This significantly missed the consensus. The operating loss was tentatively estimated at 2.8 billion KRW.

Researcher Jo Ahae said, "They set aside larger provisions than expected," adding, "It is estimated that approximately 200 billion KRW was recognized based on conservative assumptions for domestic and overseas real estate project financing (PF)-related provisions and valuation losses."

Researcher Jo noted, "Compared to other companies, the risk is lower, so the possibility of additional costs this year is considered low," and pointed out, "The proportion of overseas investments relative to capital is in the 4% range, while the industry average is 20%."

He further added, "Recovery in transaction volume based on the government's value-up program is expected, with brokerage accounting for 60% of commission income," and projected, "Based on industry improvement, the company's stable shareholder return policy is expected to stand out." The company's dividend yield is 5.7%, while the industry average is around 4.0%.