Fact Source: SK Securities / Report Date: July 1, 2026
Investment Opinion & Target Price: BUY (Maintain) / 41,000 KRW (Maintain)
Key Momentum: A massive surge in DMA trading volumes driven by the single-stock leverage ETF launch, rapidly narrowing the gap to claim the No.1 spot in brokerage market share.
📊 1. [Valuation Indicators & Investment Metrics Analysis]
- Investment Opinion & Target Price Trend: Maintained the ‘BUY’ rating and target price of KRW 41,000, presenting the stock as the sector Top-pick within the securities industry. The target price was derived by applying a Target P/B of 1.52x based on a sustainable ROE of 16.8% (2026F–2028F ROE average) and a COE of 11.8% to the 12MF BPS of KRW 269,473.
- Undervaluation Metrics: While the market heavily reflects near-term concerns over general brokerage volume peak-outs, the stock trades at a compressed 12MF P/B of 0.8x despite an outstanding 2026F ROE projection of 21.8%. This represents a discount of over 20% compared to its peer universe average (near 1.0x P/B), making the recent price widening due to a semiconductor-led market rally an attractive entry entry window.
- Key Financial Metrics & Valuation Forecasts:
- Net Operating Revenue: 2025: KRW 4,009B ➡️ 2026E: KRW 5,494B ➡️ 2027E: KRW 4,957B
- Operating Profit: 2025: KRW 2,545B ➡️ 2026E: KRW 3,608B ➡️ 2027E: KRW 2,905B
- Net Profit (Controlling Interest): 2025: KRW 2,020B ➡️ 2026E: KRW 2,918B ➡️ 2027E: KRW 2,375B
- P/E (Price-to-Earnings Ratio): 2025: 4.7x ➡️ 2026E: 4.6x ➡️ 2027E: 5.6x
- P/B (Price-to-Book Ratio): 2025: 0.8x ➡️ 2026E: 0.9x ➡️ 2027E: 0.8x
- ROE (Return on Equity): 2025: 18.7% ➡️ 2026E: 21.8% ➡️ 2027E: 15.2%
🚀 2. [Market Opportunities (TAM) & Detailed Earnings Estimates]
- Brokerage Market Share Shift (Nearing No. 1 Spot):
- Fueled by expanding average daily ETF volumes, Korea Investment & Securities’ total brokerage market share (combining KRX, NXT, and ETF) reached 13.6% as of June 2026.
- This narrows the gap with the long-standing industry leader (14.8%) to a thin 1.3%p, marking a significant acceleration given that the firm’s historical regular-session market share gap usually hovered around 7% to 8%p.
- Catalyst Behind ETF Market Share Surge (feat. DMA):
- The primary driver behind the massive scaling of ETF volumes in June was the launch effect of single-stock leveraged ETFs. As interest in hedging and arbitrage operations spiked, order flows from institutional and foreign investors via Direct Market Access (DMA) infrastructures surged.
- Consequently, the subsidiary’s total monthly ETF trading volume exploded by +67.4% MoM in June, outperforming the broader sector universe.
- Mid-to-Long-Term Growth Roadmap:
- In a market environment increasingly focused on high-volatility flows, capturing dominant institutional and foreign single-stock leveraged ETF transactions via superior DMA infrastructure secures a reliable competitive advantage. This structural setup not only guarantees an edge in the expanding domestic ETF ecosystem but scales sustainable brokerage market expansion over the long term.
📝 Editor’s Comment (by K-STOCK Editor)
Korea Investment Holdings’ 2026E fundamental capacity remains unassailable, characterized by a projected net profit of KRW 2,918B and an exceptional ROE of 21.8%. The vital fundamental inflection point for institutional allocators to track is the strategic structural evolution of its subsidiary’s brokerage engine. Moving beyond an unhedged reliance on standard retail regular-session volumes, the group has successfully captured the institutional ecosystem by positioning its DMA (Direct Market Access) pipelines as the primary execution clearinghouse for newly launched single-stock leveraged ETFs. The +67.4% MoM explosion in June ETF trading volumes reflects a sticky structural realignment rather than a transient spike. Despite actively targeting the industry-leading market share crown with the gap closing to just 1.3%p, the consolidated entity’s current multiple of 12MF P/B 0.8x fundamentally fails to price in this high-margin infrastructure shift. The maintained target price of KRW 41,000 and Top-pick status realistically capture this combination of recurring core earnings and high-barrier business model innovation.
📢 Disclaimer & Source Information Source: This content has been newly structured and written based on financial facts and data from officially published securities reports.
Investment Risk Notice: This content is provided solely for informational and linguistic reference purposes. Under no circumstances does it constitute financial advice or a recommendation to buy or sell specific stocks. All investment decisions and financial liabilities rest entirely with the investor.
Contact: For compliance inquiries or copyright requests, please contact ksb220805@gmail.com.
🔥 Bulls vs Bears, drop your analysis in the comments!
