[Click e-Stock] "Samsung Securities: Enhanced Dividend Appeal... Target Price Raised"

Target Price Raised by 16% Compared to Previous Estimate

On November 12, Korea Investment & Securities announced that it is important to note the enhanced attractiveness of dividend yield for Samsung Securities, raising its target price from 86,000 won to 100,000 won. The investment opinion remains 'Buy'.

Baek Doosan, a researcher at Korea Investment & Securities, stated, "We have raised our target price by 16% compared to the previous estimate," adding, "Despite rising interest rates, profit expansion driven by a revitalized stock market is becoming more prominent. Focusing on the brokerage and asset management sectors, we have increased our 2026 net profit estimate by 13% to 1.1 trillion won." He continued, "With improved performance, the estimated dividend per share (DPS) has been revised upward. We also expect the application of separate taxation on dividend income, which further enhances the attractiveness of the dividend yield. The dividend yield for 2025 is projected at 5.2%, with a payout ratio of 36.5%. Given the mid- to long-term shareholder return target of 50%, there is further upside potential for shareholder returns."

In the third quarter of this year, Samsung Securities posted a net profit attributable to controlling shareholders of 309.2 billion won, up 28.7% year-on-year. Researcher Baek analyzed, "This figure exceeds the consensus (average securities firm forecast) by 22%, mainly due to strong performance in brokerage, wealth management (WM), and investment banking (IB) fee income."

Pure custody fees reached 197.4 billion won, up 22% from the previous quarter. Baek noted, "Among these, overseas stock fees rose 28% to 75.6 billion won during the same period, surpassing expectations. This appears to be the result of both increased market share and improved profitability."

Financial product sales income reached 48 billion won, a 35% increase from the previous quarter. Thanks to a buoyant stock market, fees related to wrap accounts and funds grew significantly, while increased early redemptions also improved income from derivative-linked securities. Underwriting and advisory fees totaled 99.4 billion won, up 36% from the previous quarter.

Meanwhile, product operation profit and financial income stood at 274.3 billion won, down 9% from the previous quarter. Baek explained, "Despite improved financial income related to brokerage, bond management performance declined, which had a negative impact."