Shares of Korea Financial Group, which had shown strength earlier in the day, are now declining as the KOSPI index turns sharply downward.
As of 2:51 PM on May 15, Korea Financial Group's stock was trading at 257,000 won, down 0.39% from the previous session. At one point, the stock had risen by more than 8%.
The stock initially gained traction in the morning as the KOSPI index surpassed the 8,000 mark, buoyed by expectations of improved performance amid a favorable market. However, the KOSPI has since dropped to around 7,400.
On May 14, Korea Financial Group reported that its consolidated operating profit for the first quarter of this year reached 1.1063 trillion won, marking a 108.9% increase compared to the same period last year. Revenue rose to 11.9966 trillion won, up 123.7%, while net profit climbed 99.6% to 916.7 billion won.
Analysts have raised their target prices for Korea Financial Group. SK Securities increased its target from 399,000 won to 410,000 won, while Daol Investment & Securities and NH Investment & Securities adjusted theirs from 350,000 won and 340,000 won to 400,000 won, respectively. Meritz Securities raised its target from 335,000 won to 365,000 won, and Shinhan Investment Corp. increased its target from 320,000 won to 350,000 won. Samsung Securities also raised its target from 270,000 won to 320,000 won.
Jang Young-im, a researcher at SK Securities, stated, "The bullish market is expected to continue into the second quarter, sustaining the growth in brokerage and asset management commission revenues. Korea Financial Group is poised to benefit across all sectors due to the strong stock market, demonstrating robust profit capacity."
Yoon Yoo-dong, a researcher at NH Investment & Securities, noted, "While the overall strong performance in the securities industry has made it more challenging to differentiate stock prices, Korea Financial Group's diversified structure with multiple financial affiliates highlights its potential for continued earnings and stock price growth during prosperous periods."
* This article has been translated by AI.
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