Mirae Asset Securities reaffirmed its buy recommendation on Kiwoom Securities (KOSPI: 039490) on the 3rd, lifting its target price from ₩516,000 to ₩550,000. Based on the closing price of ₩322,500 on 2nd July, that implies upside of 70.5%.
Mirae Asset forecasts Kiwoom's second-quarter net profit at ₩531.1bn, beating the market consensus of ₩410.9bn by 29.3%. The brokerage attributes the outperformance chiefly to higher trading gains and increased transaction volumes driven by a rally in semiconductor stocks. Quarter-on-quarter, earnings are expected to rise 11.5%.
To arrive at the new target price, Mirae Asset raised its projected 2026 dividend per share from ₩15,500 to ₩16,500, while keeping its target dividend yield unchanged at 3.0%.
For the full year 2026, the brokerage projects net operating revenue of ₩315.3bn, operating profit of ₩216.4bn, and net profit of ₩167.2bn, with earnings per share estimated at ₩63,441.
Mirae Asset also cited the South Korean government's initiatives to revitalise the KOSDAQ — the country's secondary exchange, home to many smaller and technology-focused companies — as a positive catalyst. Measures including the structural separation of the KOSDAQ segment, the development of linked indices, and steps to foster a more favourable funding environment could help Kiwoom recover its share of retail trading volumes and its proportion of margin lending balances. Kiwoom is the dominant broker for individual retail investors in South Korea and is particularly sensitive to shifts in retail market activity.
Management has signalled its intention to meet the criteria for designation as a high-dividend company under the government's new corporate value enhancement programme. The dividend payout ratio for this year is projected at 25.2%, with a dividend yield of 6.4%.