03 039490.KS Kiwoom Securities Co., Ltd. Loading... : Bullish and Bearish Analyst Opinions

Korean securities companies benefit directly from the integrated foreign account system and surging trading volumes. Strong Q1 earnings (NH, Kiwoom, Mirae Asset) support the thesis. ETFs tracking the sector are a safer way to play the theme.

Korean securities firms like Samsung Securities, Kiwoom Securities, and NH Investment & Securities will benefit from rising foreign inflows, opening of foreign direct investment accounts, and the booming market driving brokerage revenues.

Foreign account opening (foreigners can directly trade Korean stocks) will expand brokerage revenues; major securities firms like Mirae Asset, Samsung Securities, Kiwoom, NH, and Meritz Financial are direct beneficiaries, with Meritz still lagging and offering catch-up potential.

Securities stocks (Samsung Securities, Kiwoom Securities, Mirae Asset) benefit from rising trading volumes, foreign access to Korean stocks starting in May, and Korea's undervalued market (KOSPI P/E 8.3 vs global 15-20). Brokerage revenues will rise with increased turnover, and the sector has already shown strong performance.

The foreign integrated account system and rising retail trading volume will structurally benefit large securities firms. Kiwoom Securities and Samsung Securities are well-positioned, and investors should focus on large-cap brokerage stocks during pullbacks.

Within the large-cap securities group, Kiwoom Securities, Samsung Securities, Korea Investment Holdings, and NH Investment & Securities trade at low P/E multiples of 7-8x, offering compelling valuation versus Mirae Asset Securities (18x P/E) which carries a SpaceX premium. The four firms also posted strong Q1 earnings (Kiwoom's operating profit +90% YoY) and their core brokerage revenue is growing. These stocks are attractive for dip-buying given their cheap valuations and structural earnings support.