[Click eStock] "JB Financial Group, ROE Over 12% This Year... Target Price Raised to 17,500 Won"

Kiwoom Securities on the 11th forecasted JB Financial Group's return on equity (ROE) for this year at 12.2% and raised the target stock price from 15,000 KRW to 17,500 KRW. The investment rating was maintained as a buy.

Kim Eun-gap, a researcher at Kiwoom Securities, explained, "As of the end of 2024, the current price-to-book ratio (PBR) based on the book value per share (BPS) is 0.49 times, and the target PBR is 0.62 times. The ROE forecast exceeds 12%, significantly surpassing the average 8.4% of other bank stocks besides JB Financial, which justifies a PBR premium, and the target price-to-earnings ratio (PER) is not unreasonable considering the ROE."

JB Financial Group is expected to maintain an ROE above 12% in 2024 following 12.2% in 2023. Researcher Kim Eun-gap analyzed, "A high ROE is essential for the significance of a low PBR stock, and JB Financial shows the highest ROE among bank stocks."

Additionally, thanks to the high ROE, the shareholder return ratio increased from 27% in 2022 to 33% in 2023.

JB Financial Group's consolidated net profit for 2023 was 586 billion KRW, a 2.5% decrease compared to the record high in 2022. However, it is expected to surpass the all-time high performance this year. Researcher Kim Eun-gap judged, "Although unexpected variables may arise, even a partial reduction in living finance costs or additional provisioning expenses is likely to increase net profit compared to 2023."