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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] On the 29th, Hana Securities raised its target price for Woori Financial Group from 19,000 won to 20,500 won, continuing an upward trend since the April 2023 estimate of 14,500 won.
Hana Securities stated, "We have adjusted the target PBR upwards, considering the expected improvement in ROE following the decision to acquire Dongyang Life Insurance and ABL Life Insurance. Woori Financial's board recently approved the acquisition of a 75.3% stake in Dongyang Life for 1.28 trillion won and a 100% stake in ABL Life for 2700 billion won, totaling 1.55 trillion won."
The report further explained, "The combined total assets of the two companies as of the end of Q2 amount to 51.1 trillion won, placing them in the top six among insurance companies. The acquisition prices for Dongyang Life and ABL Life reflect 0.78x and 0.36x their respective book values, while the total acquisition cost is 0.67x the estimated net asset value of 2.3 trillion won, which is significantly lower than market concerns."
Hana Securities added, "Even considering the net asset value of 2.3 trillion won for Dongyang Life and ABL Life, along with other investments like an 800 billion won stake in K-Bank and Lotte Card, the impact on CET 1 capital is minimal. Woori Financial's CET 1 ratio was 12.03% at the end of Q2, and the group is expected to maintain a CET 1 ratio above 12% post-acquisition."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
