Corporate Logo(source: koreaholdings.com)
Korea Financial Group (071050) posted a strong earnings surprise in the third quarter, prompting major securities firms to raise their target prices for the stock.
On November 12, according to the financial investment industry, Kiwoom Securities offered the highest target price, raising it 18% from ₩220,000 to ₩260,000. NH Investment & Securities lifted its target from ₩230,000 to ₩250,000, while Daishin Securities raised its projection from ₩188,000 to ₩218,000. KB Securities set a target of ₩230,000, Meritz Securities ₩225,000, Sangsangin Securities ₩240,000, and both Daol Investment & Securities and Hyundai Motor Securities offered targets of ₩250,000 and ₩228,000, respectively.
As of 10:23 a.m., shares of Korea Financial Group were trading at ₩178,400, up ₩8,600 (5.06%) from the previous session, after reaching an intraday high of ₩182,000.
The company announced the previous day that its consolidated operating profit for the third quarter came in at ₩849.1 billion, up 133.9% year-on-year, while net profit attributable to controlling shareholders rose 115.5% to ₩673.9 billion. Even after accounting for ₩23 billion in foreign exchange translation losses due to currency fluctuations, the results far exceeded market expectations.
Park Hye-jin, analyst at Daishin Securities, commented, “The results reaffirmed that the securities industry can achieve a rapid profit surge through leverage under favorable market conditions. With Korea Financial Group delivering exceptional performance for three consecutive quarters, the term ‘earnings surprise’ hardly does it justice.”
Ahn Young-jun of Kiwoom Securities stated, “Additional profitability is expected if the firm secures IMA approval for further leverage. Having demonstrated robust earnings power, it now deserves a valuation premium reflecting its strong capital growth potential.”
Yoon Yoo-dong of NH Investment & Securities noted, “The company’s outstanding balance of issuance notes stands at ₩18.7 trillion, setting it apart from its peers. Once the new IMA license is officially announced and due diligence is completed, the company could attract part of the bank deposit and savings customer base.”
Analysts attribute the impressive quarterly results to a mix of factors, including mark-to-market gains from large overseas funds, increased trading profits from asset recovery in the issuance-note portfolio, and favorable stock market conditions that benefited its asset management subsidiaries.
Lim Hee-yeon of Shinhan Securities said, “Although short-term earnings momentum may be limited, the current share price remains undervalued relative to profits. With annual net profit approaching ₩2 trillion and a market capitalization of ₩10 trillion, the valuation is reasonable compared to other non-bank financial holding companies.”
Jung Min-gi of Samsung Securities added, “Through active risk management and strong subsidiary performance, Korea Financial Group continues to demonstrate significant leverage in a buoyant capital market. Even after recent gains, the stock retains ample upside potential, trading at a PER of 5.3x, PBR of 0.9x, and ROE projections of 19.3% in 2025 and 12.9% in 2026.”
*[KOSPI] Korea Investment Holdings(071050) has subsidiaries such as Korea Investment & Securities, Korea Investment Savings Bank, and Korea Investment Capital. Market capitalization is 9.457 trillion won (as of November 11, 2025, closing price).
Corporate Logo(source: koreaholdings.com)
Korea Financial Group (071050) posted a strong earnings surprise in the third quarter, prompting major securities firms to raise their target prices for the stock.
On November 12, according to the financial investment industry, Kiwoom Securities offered the highest target price, raising it 18% from ₩220,000 to ₩260,000. NH Investment & Securities lifted its target from ₩230,000 to ₩250,000, while Daishin Securities raised its projection from ₩188,000 to ₩218,000. KB Securities set a target of ₩230,000, Meritz Securities ₩225,000, Sangsangin Securities ₩240,000, and both Daol Investment & Securities and Hyundai Motor Securities offered targets of ₩250,000 and ₩228,000, respectively.
As of 10:23 a.m., shares of Korea Financial Group were trading at ₩178,400, up ₩8,600 (5.06%) from the previous session, after reaching an intraday high of ₩182,000.
The company announced the previous day that its consolidated operating profit for the third quarter came in at ₩849.1 billion, up 133.9% year-on-year, while net profit attributable to controlling shareholders rose 115.5% to ₩673.9 billion. Even after accounting for ₩23 billion in foreign exchange translation losses due to currency fluctuations, the results far exceeded market expectations.
Park Hye-jin, analyst at Daishin Securities, commented, “The results reaffirmed that the securities industry can achieve a rapid profit surge through leverage under favorable market conditions. With Korea Financial Group delivering exceptional performance for three consecutive quarters, the term ‘earnings surprise’ hardly does it justice.”
Ahn Young-jun of Kiwoom Securities stated, “Additional profitability is expected if the firm secures IMA approval for further leverage. Having demonstrated robust earnings power, it now deserves a valuation premium reflecting its strong capital growth potential.”
Yoon Yoo-dong of NH Investment & Securities noted, “The company’s outstanding balance of issuance notes stands at ₩18.7 trillion, setting it apart from its peers. Once the new IMA license is officially announced and due diligence is completed, the company could attract part of the bank deposit and savings customer base.”
Analysts attribute the impressive quarterly results to a mix of factors, including mark-to-market gains from large overseas funds, increased trading profits from asset recovery in the issuance-note portfolio, and favorable stock market conditions that benefited its asset management subsidiaries.
Lim Hee-yeon of Shinhan Securities said, “Although short-term earnings momentum may be limited, the current share price remains undervalued relative to profits. With annual net profit approaching ₩2 trillion and a market capitalization of ₩10 trillion, the valuation is reasonable compared to other non-bank financial holding companies.”
Jung Min-gi of Samsung Securities added, “Through active risk management and strong subsidiary performance, Korea Financial Group continues to demonstrate significant leverage in a buoyant capital market. Even after recent gains, the stock retains ample upside potential, trading at a PER of 5.3x, PBR of 0.9x, and ROE projections of 19.3% in 2025 and 12.9% in 2026.”
*[KOSPI] Korea Investment Holdings(071050) has subsidiaries such as Korea Investment & Securities, Korea Investment Savings Bank, and Korea Investment Capital. Market capitalization is 9.457 trillion won (as of November 11, 2025, closing price).