Kiwoom Securities analyzed on the 10th that Hana Financial Group is expected to achieve its highest quarterly performance and rise in capital ratio. They raised the target stock price from 100,000 won to 115,000 won while maintaining an investment opinion of 'buy.' The closing price of Hana Financial on the previous trading day was 94,100 won.
Hana Financial's consolidated net profit for the second quarter is expected to increase by 16.6% compared to the previous year, reaching 1.21 trillion won. Excluding the time of the past acquisition of KEB Hana Bank, this is practically the highest performance. This is largely due to the increase in foreign exchange translation gains from the drop in the exchange rate, surpassing the securities industry forecast of 1.08 trillion won by 11.9%.
Kim Eun-gap, a researcher at Kiwoom Securities, noted, 'Consolidated net profits of over 1 trillion won per quarter were often achieved with the help of one-time profits about once a year, but they showed an increased profit-generating power with consolidated net profits over 1 trillion won for three consecutive quarters last year,' and added, 'With the performance in the second quarter of this year, a further level-up is possible.' The annual consolidated net profit is also expected to reach an all-time high, up 9.8% from last year.
Kiwoom Securities believes that the decline in the exchange rate could lead to an increase in the shareholder return rate. According to the corporate value enhancement plan, the common stock capital ratio range of 13-13.5% is an elastic zone for utilizing capital, where gradual expansion of shareholder returns is possible within this range.
The researcher explained, 'The common stock capital ratio for the first quarter is 13.23%, and if the effects of the second quarter's performance and the rise in capital ratio due to the decline in the exchange rate are added, the common stock capital ratio will increase compared to the previous quarter.' He also stated, 'A plan for 100% shareholder returns has been established for capital exceeding 13.5% (by Kiwoom Securities),' and added, 'The shareholder return rate is estimated to be 42% for this year, but there is room for increase.'
He added, 'After the execution of the corporate value enhancement plan, as the strengthening of shareholder returns takes place, the price-to-book ratio (PBR) is gradually rising to an appropriate level for the return on equity (ROE), and there is no valuation burden.'