April 27, 2024
Finance
[EQUITIES] ‘KIS set to grow as IB giant’
[THE INVESTOR] Korea Investment and Securities will grow to be an investment banking giant, according to Shinhan Investment on Nov. 24, maintaining a “buy” recommendation and target price of 53,000 won (US$44.80) for its holding company Korea Investment Holdings.
KIS has decided to pay interim dividend of 27,000 won per share to KIH which owns its entire stake. The holding company to invest up to 1.8 trillion won, a significant rise from 300 billion won, said analyst Son Mi-ji. The double leverage ratio for holdings companies of financial institutions stands at 130 percent.
As of the third quarter, KIS’ equity capital amounts to 3.3 trillion won, and as KIH’s investment reserve has increased, it is likely that it will be able to meet the 4 trillion won standard for extra-large investment banking institution, noted the analyst.
All five largest securities firm will join the league, forecast the analyst: Mirae Asset Daewoo, which is finalizing the merger has an equity capital of 6.7 trillion won; NH Investment and Securities (4.5 trillion won); KB Investment and Securities and Hyundai Securities will merge next year with a combined 3.95 trillion won; and Samsung Securities (3.8 trillion won).
By Hwang You-mee (glamazon@heraldcorp.com)
KIS has decided to pay interim dividend of 27,000 won per share to KIH which owns its entire stake. The holding company to invest up to 1.8 trillion won, a significant rise from 300 billion won, said analyst Son Mi-ji. The double leverage ratio for holdings companies of financial institutions stands at 130 percent.
As of the third quarter, KIS’ equity capital amounts to 3.3 trillion won, and as KIH’s investment reserve has increased, it is likely that it will be able to meet the 4 trillion won standard for extra-large investment banking institution, noted the analyst.
All five largest securities firm will join the league, forecast the analyst: Mirae Asset Daewoo, which is finalizing the merger has an equity capital of 6.7 trillion won; NH Investment and Securities (4.5 trillion won); KB Investment and Securities and Hyundai Securities will merge next year with a combined 3.95 trillion won; and Samsung Securities (3.8 trillion won).
By Hwang You-mee (glamazon@heraldcorp.com)
