Although Mirae Asset Securities' stock price rose for two consecutive trading days after claiming the title of leading securities firm with record-breaking second-quarter earnings, securities firms lowered their target prices, presenting a contradictory picture. The second-quarter results are widely assessed to have been significantly influenced by large evaluation gains from SpaceX, the U.S. aerospace company in which Mirae Asset Securities holds investments. Analysts suggest that market volatility in the second half and the direction of SpaceX's stock price could become burdens.
According to the financial investment industry on the 16th, Mirae Asset Securities' stock price rose for two consecutive trading days following its Q2 earnings release on the 12th. After rising over 2% compared to the previous day on the 12th, it surged over 4% on the 13th. Although the stock dipped slightly on the 14th, it has generally trended upward since the beginning of August.
This is attributed to the impact of surprise earnings in the second quarter. Consolidated net income attributable to owners of the parent company increased by 90% from the previous quarter to 1.9052 trillion won, while pre-tax profit rose by 86% to 2.5287 trillion won, achieving record-breaking results. The firm also set a new industry first by surpassing 1 trillion won in net income for two consecutive quarters. With semiannual net income of 2.9072 trillion won, Mirae Asset Securities overtook Korea Investment & Securities, which had ranked first in the first half of last year, to claim the title of leading securities firm.
However, most securities firms lowered their target prices following Mirae Asset Securities' Q2 earnings announcement. Of 14 securities companies, 11 reduced their target prices. Analysts note that since the second-quarter results reflected strong domestic market performance and large evaluation gains from SpaceX, the company will inevitably be affected by volatility in the domestic stock market and SpaceX's stock price in the second half.
In fact, evaluation gains related to SpaceX amounting to 1.6242 trillion won were included in the pre-tax profit for the second quarter. These gains resulted from valuing SpaceX's listed shares as of the end of June at a closing price of $170.86. The proportion of pre-tax profit attributable to SpaceX evaluation gains reached 64%. Excluding this, pre-tax profit stood at 904.4 billion won.
Kiwoom Securities researcher An Young-jun stated, "As of August 11, SpaceX's stock price was $133, representing a decline of approximately 22% compared to the end of the second quarter. Considering this, we expect evaluation losses of about 1 trillion won to be reflected in the third quarter." SK Securities researcher Jeong Young-im added, "The potential for significant short-term volatility in profits related to SpaceX could act as a burden on the stock price."
SpaceX's stock price soared to $201.8 (based on closing prices) after its listing but fell into the $100s amid concerns over supply and demand following the release of locked-up shares. Contrary to these concerns, no significant volume of locked-up shares was dumped, and recently the stock has been trading in the $140 range.
However, even excluding evaluation gains from SpaceX, Mirae Asset Securities is assessed to have delivered robust results in its core business. The company explained that it showed stable growth trends in key segments such as WM (wealth management), brokerage, and trading.
LS Securities researcher Jeon Bae-seung said, "A stable profit foundation centered on the WM segment and pension businesses is also being strengthened. Excluding SpaceX, the company recorded over 100 billion won in pre-tax profits from its overseas business, a key strength of the firm. Through initiatives such as the launch of Hong Kong MTS (mobile trading systems), efforts to acquire local securities firms in the U.S. and Japan, and global investment platform business models including digital assets, the company aims to drive further corporate valuation increases."
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