Corporate Logo(source: securities.miraeasset.com)
Korea Investment & Securities Co.,Ltd has downgraded its investment rating on Mirae Asset Securities (006800) to ‘Neutral,’ citing limited upside potential following a sharp recent rise in the stock price. No target price was provided. The stock closed at 20,700 won in the previous session.
Analyst Baek Doo-san of Korea Investment & Securities Co.,Ltd stated, “While we have raised our estimate of the sustainable return on equity (ROE) from 9.1% to 9.3% in light of strong earnings, the current price-to-book ratio (PBR) stands at 0.92x. Even when applying a cost of equity in the 11% range—factoring in expectations related to potential share buybacks and cancellations—further upside for the stock appears limited.”
Baek forecast that Mirae Asset Securities will report second-quarter net income attributable to controlling interests of 299.1 billion won, exceeding market consensus by 25%. By segment, trading profit is projected to rise 20% quarter-on-quarter to 392.2 billion won, driven by strong performance in the domestic capital markets and solid returns from investment-purpose assets.
Fair value gains are expected to remain robust this quarter, following strong results in the previous period. Additional valuation gains from overseas pre-IPO investments are anticipated, while valuation losses on overseas commercial real estate assets are expected to decline. These favorable trends in fair value gains are likely to positively impact not only trading profit but also the performance of overseas subsidiaries.
Brokerage commission income is projected to increase 13% quarter-on-quarter to 223.9 billion won. Although overseas equity commission income is expected to fall by 3%, domestic equity commission income is forecast to rise by 29%. Net interest income is projected to improve slightly to negative 17.2 billion won, supported by higher credit-related income from expanded balances and a reduction in funding costs.
Investment banking (IB) commission income is forecast to increase 11% from the previous quarter to 38.1 billion won, primarily due to a recovery in advisory and other fees, according to Baek.
Despite the downgrade to a ‘Neutral’ rating, Baek noted that downside risk for the stock remains limited. He cited a healthy 23% year-on-year increase in earnings per share (EPS) projected for this year, along with continued policy momentum related to the domestic stock market.
He also projected that following the completion of common stock purchases by its capital affiliate in July, Mirae Asset Securities is expected to announce a share buyback and cancellation plan.
*[KOSPI] Mirae Asset Securities(006800) is the largest securities firm in Korea in terms of equity capital and has a global network in 11 countries including the US, Hong Kong, Vietnam, and Indonesia. Market capitalization is 11.81 trillion won (as of July 8, 2025, closing price).
Corporate Logo(source: securities.miraeasset.com)
Korea Investment & Securities Co.,Ltd has downgraded its investment rating on Mirae Asset Securities (006800) to ‘Neutral,’ citing limited upside potential following a sharp recent rise in the stock price. No target price was provided. The stock closed at 20,700 won in the previous session.
Analyst Baek Doo-san of Korea Investment & Securities Co.,Ltd stated, “While we have raised our estimate of the sustainable return on equity (ROE) from 9.1% to 9.3% in light of strong earnings, the current price-to-book ratio (PBR) stands at 0.92x. Even when applying a cost of equity in the 11% range—factoring in expectations related to potential share buybacks and cancellations—further upside for the stock appears limited.”
Baek forecast that Mirae Asset Securities will report second-quarter net income attributable to controlling interests of 299.1 billion won, exceeding market consensus by 25%. By segment, trading profit is projected to rise 20% quarter-on-quarter to 392.2 billion won, driven by strong performance in the domestic capital markets and solid returns from investment-purpose assets.
Fair value gains are expected to remain robust this quarter, following strong results in the previous period. Additional valuation gains from overseas pre-IPO investments are anticipated, while valuation losses on overseas commercial real estate assets are expected to decline. These favorable trends in fair value gains are likely to positively impact not only trading profit but also the performance of overseas subsidiaries.
Brokerage commission income is projected to increase 13% quarter-on-quarter to 223.9 billion won. Although overseas equity commission income is expected to fall by 3%, domestic equity commission income is forecast to rise by 29%. Net interest income is projected to improve slightly to negative 17.2 billion won, supported by higher credit-related income from expanded balances and a reduction in funding costs.
Investment banking (IB) commission income is forecast to increase 11% from the previous quarter to 38.1 billion won, primarily due to a recovery in advisory and other fees, according to Baek.
Despite the downgrade to a ‘Neutral’ rating, Baek noted that downside risk for the stock remains limited. He cited a healthy 23% year-on-year increase in earnings per share (EPS) projected for this year, along with continued policy momentum related to the domestic stock market.
He also projected that following the completion of common stock purchases by its capital affiliate in July, Mirae Asset Securities is expected to announce a share buyback and cancellation plan.
*[KOSPI] Mirae Asset Securities(006800) is the largest securities firm in Korea in terms of equity capital and has a global network in 11 countries including the US, Hong Kong, Vietnam, and Indonesia. Market capitalization is 11.81 trillion won (as of July 8, 2025, closing price).