On the 3rd, LS Securities raised its investment opinion to Buy from Hold (neutral) and raised its ta..

On the 3rd, LS Securities raised its investment opinion to Buy from Hold (neutral) and raised its tarreceive stock price from 21,000 won to 24,000 won, declareing NH Investment & Securities revealed its highest performance in the third quarter of this year due to strong performance in all sectors.

NH Investment & Securities’ net profit in the third quarter was KRW 283.1 billion, exceeding market expectations. Following the second quarter, the return on equity capital (ROE) reached 13%, which was the highest ever in terms of net profit.

While the increase in commission profit was maintained, operating profit and interest profit also remained high, with net operating profit exceeding 700 billion won for the first time.

Analysts declare that the stock market continues to be strong in the fourth quarter amid no special one-time cost factors to affect its performance, and that the foundation for enhancing current profitability is strengthening by promoting additional growth through the acquisition of a comprehensive investment account (IMA) license in the future.

In the third quarter, not only domestic but also overseas stock fees improved significantly. It is explained that the scale of financial product sales revenue continues to expand due to the effect of revitalizing the capital market.

Operating profit continued to be strong due to conservative operability despite rising market interest rates, and interest profit also increased due to the expansion of credit balances. The corporate finance (IB) sector slowed slightly compared to the second quarter, when profits soared due to the concentration of large-scale deals, but maintained a high profit contribution and revealed positive performance in all profitable sectors.

Meanwhile, the company’s IMA license review is still underway, and after the capital increase, the total capital on a separate basis at the conclude of September expanded to 8.4 trillion won.

Dividconclude tconcludeencies are expected to decline compared to last year due to capital maintenance of more than 8 trillion won for the IMA business management, but dividconcludes per share are expected to expand to 1,100 won due to a surge in annual profits. The expected dividconclude yield is 5.4%, and it is expected to benefit from the introduction of separate dividconclude income tax.

Jeon Bae-seung, a researcher at LS Securities, declared, “We will raise our investment opinions and tarreceive stock prices by raising our earnings estimates, increasing profit visibility, and rising per share value and dividconcludes that overwhelm the dilution effect of capital increase along with the strong stock market.”

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3rd Buy hold Investment neutral OPINION Raised securities ta.