Stock Trading Value Reaches All-time High Last Week
The author is an analyst of NH Investment & Securities. He can be reached at junsup@nhqv.com. -- Ed.
Last Friday, trading value in the domestic stock market reached an all-time high. Under the current ‘money-move’ environment of the capital markets, we expect Samsung Securities’ WM business strengths to greater stand out.
Raise TP to W57,000; maintain Buy rating
We raise our TP on Samsung Securities from W44,000 to W57,000 in reflection of upward revisions to our earnings estimates. Our new TP was calculated by applying a fair P/B of 0.98x to 2021E BPS of W63,661.
We maintain a Buy rating. Given the currently strong liquidity flows into capital markets and soaring stock trading value, Samsung Securities’ WM business strengths look poised to greater stand out.
WM strengths to be highlighted on strong liquidity flows into capital markets
Last Friday, trading value in the domestic stock market reached an all-time high. Daily average trading value (DATV) in the domestic stock market touched W33.6tn in Dec 2020, before exceeding W40tn at the beginning of this year and finally reaching W60.2tn last Friday. In addition to soaring DATV, stock market brokerage deposits climbed to W69.3tn, and CMA balance widened to W66.5tn.
Such changes in the market environment are expected to highlight the company’s WM strengths. Taking advantage of the ‘Samsung’ brand, the firm currently boasts 155,000 high net worth individuals (HNWIs), and recently, a large number of non-face-to-face customers have been secured. The WM businesses of domestic securities players are anticipated to grow rapidly under the current environment, and among large securities firms, Samsung Securities, the leader in WM prowess, should be the primary beneficiary.