NH Investment & Securities raised the target price of Samsung Card from 47,000 KRW to 54,000 KRW on the 8th. Since the second half of last year, the company has been managing asset quality by reducing loan limits for potentially delinquent customers. It is expected to achieve solid results for three consecutive quarters, leading to an upward revision of the annual estimates.
They also judged that expectations for value-up across the Samsung Financial Group are rising. Samsung Card holds 7.9% of its own shares, maintains a dividend payout ratio in the 40% range, and a stable or rising trend in dividends per share (DPS). With a leverage ratio of 3.5 times, it is considered reasonable to expect either an expansion of dividends or a treasury stock policy.
Net profit for the second quarter is expected to be 160.8 billion KRW, in line with consensus. Credit sales revenue is forecasted at 614.2 billion KRW. While the previous quarter controlled external growth, the second quarter saw some expansion in marketing expenses, achieving the targeted low single-digit growth. This is presumed to be to prevent an excessive decline in credit sales market share.
Yoon Yudong, a researcher at NH Investment & Securities, said, "The amount of debt restructuring applications in the future is a key factor, but it is expected not to increase significantly."
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