"Mirae Asset Securities Expected to Announce New Corporate-Value Enhancement Plan in November"

[Financial News] Yuanta Securities Korea maintained its 'Buy' rating on Mirae Asset Securities on the 10th, citing expectations for a new corporate-value enhancement plan. However, reflecting the decline in trading value, it lowered its target price from 75,000 won to 61,000 won.
Do-hyung Woo, an analyst at Yuanta Securities Korea, said, "Mirae Asset Securities recorded earnings per share (DPS) of 300 won, a consolidated dividend payout ratio of 11.0%, and a total shareholder-return ratio of 40.2% last year." He added, "We believe the company will maintain its policy of a consolidated shareholder-return ratio of at least 35% through this year, and is expected to announce a new corporate-value enhancement plan at its third-quarter earnings presentation in November."
He continued, "In particular, the company is expected to present its shareholder-return policy for the next three years and its direction on treasury shares from the merger." He added, "To ensure the reliability of the dividend yield, we believe it may also consider reflecting adjustments for the valuation gains and losses of its investment companies."
Third-quarter net income attributable to controlling shareholders was projected at 62.8 billion won, reflecting sensitivity to losses from a decline in SpaceX's share price. Based on a $10 drop from $171 at the end of the second quarter to $161 at the end of the third quarter, a valuation loss of 270 billion won was reflected.
Woo said, "Mirae Asset Securities recorded valuation gains of 2.55 trillion won from SpaceX in the first half. Even after taking the third-quarter loss into account, it has generated valuation gains of more than 2 trillion won, so annual earnings are expected to remain solid." He added, "Mirae Asset Securities' average purchase price for its SpaceX investment is $34, and it is still recording valuation gains of about four times that amount. Therefore, its medium- to long-term investment direction is expected to remain unchanged."
He also expected synergies from the establishment of a global investment platform. Woo said, "Mirae Asset Securities is currently considering acquiring local securities firms in the United States and Japan and is preparing to build a global investment platform." He added, "If digital assets are institutionalized in the future, they could create synergies with the platform, while the stable growth of wealth management (WM) revenue compared with competitors could contribute to valuation stabilization."

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