[Click eStock] "Securities Stocks Continue Uptrend... Top Picks Are Samsung and NH Investment & Securities"

Yuanta Securities stated on the 28th that the shareholder return policies for securities stocks are positive, and they expect a favorable environment to continue in the fourth quarter, including a boom in overseas stocks. Their top picks are Samsung Securities and NH Investment & Securities, with Kiwoom Securities listed as a stock of interest.

Researcher Woo Dohyung said, "Companies presenting high total shareholder return ratios have relatively high price-to-book ratios (PBR)," adding, "Among the covered securities firms, Samsung Securities and NH Investment & Securities are considered to have the strongest momentum related to shareholder returns."

Woo explained, "The trading volume of overseas stocks in the third quarter increased by 36.2% compared to the previous quarter, significantly boosting overseas stock commission fees for securities firms," and added, "Considering the increasing trend in overseas stock trading volume in October and November, favorable overseas stock commission fees are expected in the fourth quarter as well."

He also noted, "Regarding issued promissory notes, cost improvements are expected due to the decline in interest rates," stating, "The annual interest expense ratio for issued promissory notes among securities firms is around 3.4?3.5%, and if the expense ratio decreases by 1 percentage point, the costs are expected to improve by approximately KRW 161.8 billion for Korea Investment & Securities, KRW 63.8 billion for NH Investment & Securities, and KRW 78.2 billion for Mirae Asset Securities." This corresponds to about 6.3%, 3.4%, and 3.7% respectively of the expected net operating income for 2024.

He further analyzed, "Samsung Securities will benefit from the increase in overseas stock trading volume," and "NH Investment & Securities is also expected to show favorable performance due to improvements in IB results and reductions in interest expenses on issued promissory notes." He added, "Kiwoom Securities has expectations related to the approval of issued promissory notes, and downside pressure is limited."