Samsung Securities, unfavorable market earnings expectations hihoe - Shinhan

[Korea hyerin nine financial newspaper reporter] said Shinhan Investment is below expectations due to the unfavorable market performance for the fourth quarter of last year, Samsung Securities 15 days. This recommendation is made BUY, TP remains 4 million.

4Q11 consolidated earnings at Samsung Securities has posted an operating profit of 16.1 billion won (-75.4% QoQ, -47.4% YoY), (governance), net 25.5 billion won (-49.1% QoQ, + 15.0% YoY). This was below our estimate (net 41.1 billion won) and consensus (458 billion) in annualized ROE 2.8%.

Researchers at Shinhan Investment hands image was evaluated and, if listed, such as the Samsung Bio-Logics, except that the IB (corporate finance) revenue surged been sluggish performance in all sectors.

Hand researchers that reason, priority market trading bonds losses and ELS (securitized derivatives) proprietary trading to hedge operating losses due to interest rate surge was commission income decreased by 11.5%, while decreasing 9.9% in the previous quarter (trading) income deficit the width has been expanded, he said.

In addition, the "honorary severance pay 8.8 billion won due to the end of regular voluntary retirement (50 persons) conducted also took place in the one-off costs, cod Building disposal gains (about 200 million) was not enough to offset the poor performance dwaeteuna is recognized as non-operating income ' he said.

Followed by hands researchers 'Retail client assets were at the end of 2016, Samsung Securities 7.4% decrease compared to the previous year end to 161.1 trillion' recent global stock market uncertainty to expand asset management (WM) look a little sluggish market, said, she said.

He added, "The outlook for 2079 one hundred million won this year's expected net income, ROE 5.1% 'said Samsung Securities will inevitably be a high proportion competitors WM IB revenue income ratio decreased more sensitive to the WM market slump'.



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