[Edaily Reporter Kwon Oh Seok ] SANGSANGINVESTMENT&SECURITIES announced on the 22nd that it is maintaining its “Hold” (neutral) investment rating on MIRAE ASSET SECURITIES(006800)and lowering its target price from 88,000 won to 43,000 won.

Kim Hyun-soo, an analyst at SANGSANGINVESTMENT&SECURITIES, stated, “Since SpaceX’s stock price has fallen below a market capitalization of $1.58 trillion as of yesterday (the 21st) from its late-June peak, it is highly likely that a significant portion of the valuation gains recognized in the second quarter will be reversed as valuation losses in the third quarter,” adding “Consequently, consolidated net income for the third quarter is likely to turn negative, and the fact that price fluctuations in a single investment asset significantly influence quarterly earnings and ROE (return on equity) remains a negative factor,” he analyzed.
However, the firm judged that “the valuation pressure has eased considerably, and the profitability of the core business is also improving. If the volatility in SpaceX-related earnings stabilizes in the future and we can confirm normalized capital and profit levels, there is ample room to upgrade the investment rating to ‘Buy.’”
The firm projected that consolidated net income for the second quarter would reach 2.582 trillion won, marking a 540.3% year-over-year increase and a 159.2% quarter-over-quarter rise, setting a new all-time high. Previously, in the first quarter, an unrealized gain of approximately 600 billion won was reflected based on SpaceX’s enterprise value of $800 billion; however, in the second quarter, its value rose from $1.75 trillion at the time of its IPO to approximately $2.25 trillion as of the end of June.
Analyst Kim explained, “Based on this, the value of MIRAE ASSET SECURITIES’ stake is estimated at approximately 5.4 trillion won. With an additional valuation gain of about 3 trillion won compared to the previous book value reflected in consolidated earnings, second-quarter net income is expected to significantly exceed core business performance.”
Even excluding the large consolidated valuation gain, he forecast that operating revenue on a standalone basis would continue to show robust growth. He stated, “We expect second-quarter standalone brokerage revenue to reach 536 billion won, a 30.1% increase quarter-over-quarter, and Wealth Management (WM) revenue to remain at a high level of 108 billion won,” adding He added, “While the expansion of trading volume in domestic stocks and ETFs (exchange-traded funds) is driving brokerage revenue, the growth in financial products and pension assets is supporting WM revenue, and interest income is also expected to improve due to the expansion of credit facilities.”