Korea Investment Holdings’ stock has skyrocketed, well outperforming its peers with a jump of more than 60 percent so far this year on high expectations for the launch of the country’s second online Kakao Bank and strong performance in privatized Woori Bank.
Korea Investment Holding turned itself into a full-fledged financial entity in the first quarter to add its appeal to investors on top of its aggressive management under the leadership of Kim Nam-goo. Its stock price climbed 64.2 percent this year, beating its bigger peers
Mirae Asset Daewoo Securities (47.1 percent), NH Investment & Securities (41.4 percent) and KB Financial Group (37.9 percent).
Shares of Korea Investment Tuesday closed 0.87 percent up at 69,400 won.
Its popularity was fueled by explosive response to the second online bank that drew more than 1 million account openings in the first five days since launch on July 27. Korea Investment Holdings is the largest shareholder in Kakao Bank with a 58 percent stake.
Strong performance of brick-and-mortar Woori Bank where it holds 4 percent stake also has contributed to its consolidated bottom line. The investment company which bought 4 percent stake in September last year at 12,000 won profited over 180 billion won in less than a year as Woori Bank’s stock closed Monday at 18,900 won.
Its mainstay brokerage business also has fared well. First-quarter operating profit more than doubled to 196.5 billion won ($174.3 million) from a year ago. Net profit zoomed from 80.2 billion won to 144.2 billion won in the same period. It marks the largest ever quarterly gain. Analysts estimate the company’s second-quarter net to have hovered at 90 billion won.
By Hong Jang-won
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]