NH Investment & Securities pointed out the reason why Kiwoom Securities struggles to surpass 130,000 KRW on the 1st as the 400 billion KRW scale Redeemable Convertible Preferred Shares (RCPS). The target price was maintained at 180,000 KRW with a 'Buy' investment rating.
Researcher Yoon Yudong stated, "Kiwoom Securities' stock price peak has been granted a premium for its retail value, which has increased annually despite various noises since the booming securities industry period during COVID-19, combining characteristics of both growth and dividend stocks."
He added, "However, the 400 billion KRW RCPS acts as a cap, keeping the stock price at 130,000 KRW," emphasizing, "This value-up momentum is seen as an opportunity to alleviate financial burdens." This is based on past experience of absorbing 355.2 billion KRW RCPS during COVID-19.
Researcher Yoon noted, "The government is actively promoting tax support and value-up activation, and the company is strongly committed to enhancing shareholder value as the first to disclose value-up," pointing out, "It aims for a separate return rate of over 30%, a price-to-book ratio (PBR) above 1, a three-year average return on equity (ROE) of 15%, and treasury stock cancellation."
He continued, "It is expected that the dividend and treasury stock ratio within the return rate will be identified soon," adding, "Even assuming only dividends per share (DPS), the yield based on the closing price is in the 6% range."
Furthermore, he forecasted, "The second-quarter earnings are also expected to exceed consensus," projecting, "The consolidated net profit for the second quarter is expected to reach 208.1 billion KRW, a 56.1% increase compared to the previous year."
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