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Photo: Mirae Asset Securities |
[Alpha Biz= Paul Lee] Hyundai Motor Securities announced on July 11 that it has raised the target price of Mirae Asset Securities to KRW 19,000, up 35.7% from the previous estimate. However, the firm downgraded its investment rating from “Buy” to “Market Perform”, citing the stock's steep recent rally despite strong expected Q2 earnings.
Analyst Jang Young-im of Hyundai Motor Securities projected that Mirae Asset Securities’ Q2 net profit attributable to controlling shareholders will reach KRW 280.4 billion, exceeding market consensus by 9.9%.
Despite the positive earnings outlook, Hyundai Motor Securities expressed caution over the stock’s sharp recent price increase, fueled by market expectations around governance restructuring and share buyback cancellations.
Jang explained, “Mirae Asset is currently trading at the highest valuation among our coverage universe, but with a return on equity (ROE) of only 8.5%, it is difficult to justify a higher target price-to-book (P/B) ratio based on fundamentals.”
She added, “There is no clear timeline or visibility on the governance restructuring yet, which limits the stock’s upside potential at this stage. In the case of share cancellations, shares acquired through mergers typically require capital reduction and special shareholder resolution under Korean Commercial Law.”
Regarding recent investor enthusiasm about the group's stablecoin trademark filing, Hyundai Motor Securities also noted that the project remains in its early development phase, and its impact on earnings should be interpreted cautiously.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
