[THE INVESTOR] Kiwoom Securities has missed third-quarter earnings expectations, said Hana Financial Investment on Nov. 13 lowering the target price to 100,000 won (US$87.77) from 113,000 won.
Its net profit of controller stake in the period dropped 39 percent from the previous quarter to 48.2 billion won, while that of securities sector fell 28 percent. A 38 percent hike in advertising campaign further brought down the bottom line. Investment banking, however, maintained the profit level of the previous quarter and that of wholesale sector jumped 30 percent, said analyst Shin Dong-ha.
Operating profits of its major subsidiaries advanced 40 percent from the second quarter. The earnings improvement in IB unit and subsidiaries signifies the easing of its high dependence on the domestic stock market. Meanwhile, expectations remain high as the securities firm is keenly considering establishing an internet-only bank, he said maintaining a “buy” recommendation.
By Hwang You-mee (firstname.lastname@example.org)