[Edaily Reporter Kwon Oh Seok ] HYUNDAI MOTOR SECURITIES announced on the 15th that it is maintaining its “Buy” rating on MIRAE ASSET SECURITIES(006800)but lowering its target price from 42,000 won to 36,000 won.

Kim Seong-hoon, an analyst at HYUNDAI MOTOR SECURITIES, stated, “The valuation pressure, which had been relatively high among securities stocks, is showing signs of easing. Going forward, it will be important to monitor whether proactive shareholder return policies—such as dividends that take into account the cancellation of treasury shares following the merger and gains or losses from the valuation of investment assets—materialize, alongside a reduction in earnings volatility.”
He added, “If the roadmap and earnings contributions from industry-leading new businesses—such as the expansion into overseas retail markets and the digital asset business—become more concrete, they could serve as factors supporting a valuation premium.”
Consolidated net income for the third quarter is projected to be -428.2 billion won, marking a shift to a loss compared to the previous quarter and falling short of consensus estimates. He analyzed, “This is due to weakened recurring revenue sources resulting from unfavorable market conditions—including a decline in trading volume and increased interest rate volatility—in addition to valuation losses on domestic and international investment assets, particularly those related to SpaceX.”
On a standalone securities basis, brokerage commission income is expected to decline by 32.0% quarter-over-quarter due to a contraction in domestic and international stock trading volumes. Wealth Management (WM) profit is also expected to decline by 25.7% due to a drop in client asset balances caused by the sluggish stock market and a slowdown in sales of financial products such as funds and wrap accounts. The Investment Banking (IB) division is forecast to show a slowdown in earnings growth as the absence of major deals persists. Net interest income is projected to decrease by 8% quarter-over-quarter to 100.6 billion won, partly reflecting rising funding costs.
Analyst Kim stated, “On a consolidated basis, we expect a trading loss of over 400 billion won. This reflects both weak operating profits linked to domestic stock prices and valuation losses resulting from expanded exposure to overseas investment assets,” he said. “SpaceX recorded valuation losses of approximately 580 billion won due to a combination of falling stock prices and a weakening exchange rate. However, since October, SpaceX’s stock price has recovered to over $160, and we expect volatility to decrease as hedging operations for related exposures are expanded going forward,” he added.