Korean securities stocks are drawing investor focus as Q2 domestic market daily trading volume rose 35.1% quarter-over-quarter to approximately 90 trillion won, with Samsung Securities and NH Investment & Securities each projected to beat earnings consensus by over 20% according to Mirae Asset Securities. The brokerage fee revenue improvement comes alongside dividend yields exceeding 7% for both firms, reinforcing the sector's investment appeal. Mirae Asset Securities analyst Jung Tae-jun cited Samsung Securities as a primary beneficiary of the trading surge, noting a 7.0% expected dividend yield and substantial valuation upside.
Samsung Securities and NH Investment & Securities Q2 Earnings Projections
Mirae Asset Securities estimated Samsung Securities' Q2 net profit attributable to controlling shareholders at 519.8 billion won, 20.2% above market consensus of 432.4 billion won. The earnings beat stems from increased brokerage commission revenue driven by the sharp rise in trading volume, with stable trading profits and solid corporate finance (IB) performance providing additional support. Mirae Asset Securities maintained a 'buy' rating and 178,000 won target price for Samsung Securities, implying approximately 65% upside from current levels.
NH Investment & Securities' Q2 net profit attributable to controlling shareholders is projected at 479.5 billion won, exceeding consensus of 398.6 billion won by 20.3%. Brokerage revenue gains and improved asset management income are expected to drive results, though bond-related valuation losses from rising interest rates may partially offset trading profits. The target price remains at 44,000 won, representing roughly 52% upside.
Dividend Yields Exceed 7% for Both Firms
Mirae Asset Securities forecast Samsung Securities' dividend yield for this year at 7.0% and NH Investment & Securities at 7.3%. Samsung Securities has stated a medium- to long-term policy of expanding its dividend payout ratio to 50%, sustaining dividend investment appeal. NH Investment & Securities maintains an annual dividend policy, with potential for increased attention as a high-dividend stock as the year-end dividend record date approaches, according to the analysis.
Jung noted that while NH Investment & Securities' high dividend yield may not attract immediate focus due to its annual payout schedule, the stock showed differentiated gains earlier this year as the dividend record date neared, suggesting similar potential later this year.
Valuation Metrics Support Re-Rating Potential
Mirae Asset Securities estimated Samsung Securities' price-to-earnings ratio (PER) for this year at 5.7x and NH Investment & Securities at 6.5x. The firm assessed valuation pressure as limited, citing earnings improvement, high return on equity (ROE), and stable shareholder return policies as factors supporting further price re-rating. Jung emphasized that Samsung Securities is positioned as the largest beneficiary of the trading volume surge, with a clear valuation advantage given the 7.0% expected dividend yield.
FAQ
What caused the Q2 trading volume increase in the Korean stock market?
The source reports that Q2 domestic market daily average trading volume reached approximately 90 trillion won, up 35.1% from the previous quarter, but does not specify the underlying drivers of the increase. Mirae Asset Securities attributes the resulting brokerage revenue gains to this volume surge.
How much are Samsung Securities and NH Investment & Securities expected to beat Q2 earnings estimates?
Mirae Asset Securities projects Samsung Securities' Q2 net profit attributable to controlling shareholders at 519.8 billion won, 20.2% above consensus of 432.4 billion won. NH Investment & Securities is estimated at 479.5 billion won, exceeding consensus of 398.6 billion won by 20.3%.
What are the expected dividend yields for Samsung Securities and NH Investment & Securities this year?
Mirae Asset Securities forecasts Samsung Securities' dividend yield at 7.0% and NH Investment & Securities at 7.3% for this year. Samsung Securities has indicated a medium- to long-term target payout ratio of 50%, while NH Investment & Securities follows an annual dividend policy.
