[Alpha Biz= Reporter Kim Minyoung] KB Securities announced on the 25th that it has maintained a "buy" rating on Shinhan Financial Group, while raising its target price from the previous 60,000 won to 62,000 won. The stock closed at 48,000 won the previous day.
According to KB Securities, Shinhan Financial Group's consolidated net profit for the second quarter is expected to exceed market expectations at 1.32 trillion won. The full-year consolidated net profit for this year is estimated to increase by 11.5% year-on-year to 4.8683 trillion won.
KB Securities noted, "Following the earnings performance in the first quarter, we anticipate that Shinhan Financial Group will demonstrate solid earnings in the second quarter, surpassing expectations despite increased provisions related to rising delinquency and project financing burdens. Although there is a possibility that CET1 ratio may decline in the second quarter due to increased loan growth compared to the previous quarter, we expect a relatively stable management that will maintain expectations for increased shareholder returns."
Furthermore, KB Securities mentioned, "Shinhan Financial Group has conducted 450 billion won of treasury stock repurchases and cancellations this year (equivalent to 1,500 billion won per quarter), and considering the increased profit size and efforts to enhance shareholder returns, it is expected that quarterly treasury stock repurchases exceeding this amount will be possible in the fourth quarter."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
