[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 16th that it is maintaining its “Buy” rating and target price of 68,000 won for SAMSUNG CARD CO., LTD.(029780).

Yoon Yu-dong, an analyst at NH INVESTMENT & SECURITIES, stated, “In an unfavorable macroeconomic environment, shareholder returns are the momentum to look forward to in the second half of the year,” adding, “The company is highly committed to maintaining the requirements for separate taxation of dividend income, and assuming a 2026E DPS (dividend per share) of 2,800 won—the same as the previous year—the dividend yield would be 6.2%. “It is also necessary to complete the cancellation of the 7.9% of treasury stock currently held by September of next year,” he added.
He estimated that third-quarter operating profit would come in at 178.3 billion won (down 16.6% year-over-year) and net income at 132.5 billion won (down 18.1%), both below consensus estimates. He noted that, following the first half of the year, consumer spending in July and August remained robust.
Analyst Yoon stated, “All sectors, including department stores and home appliances, are growing steadily, and the expansion of co-branded credit cards is continuing,” but added, “Since credit card spending typically declines during the Chuseok holiday in September, we expect third-quarter new sales growth to be slightly limited compared to the first half.”
He added, “The credit card loan balance in July stood at 6.7 trillion won, similar to the previous month, while cash advance balances continued to rise to 1.3 trillion won,” and predicted, “Although the level of management for vulnerable borrowers has improved, the company will moderate the annual growth rate of the total balance from a risk management perspective.”
He noted, “We estimate that the total borrowing rate will rise to a maximum of 3.30% (3.10% in the second quarter) by the end of the year. Recently, the 3-year credit card bond yield continued its upward trend, reaching 4.64% (4.28% in the second quarter). “The pace of rising funding costs is gradually accelerating,” he noted, adding, “To reduce overall costs, effectively managing delinquency and credit loss rates going forward will be crucial.”