NH Investment & Securities earns its money across four lines: execution of retail and institutional trades, investment banking that helps companies raise capital and pursue M&A, wealth management of client assets, and proprietary trading with the firm's own capital. The stream of derivative-linked product issuance filings that fill its recent disclosures is routine business for a large house of this size, and its earnings swing considerably with trading volumes, interest rates and the direction of the equity market. In March it declared a year-end dividend with a 47.3% payout (₩1,300 per share) and set targets of a 12% ROE and a 1.0x P/B, and in June a roughly ₩400 billion rights offering subscribed by parent NongHyup Financial Group added capacity for retail margin lending and IB funding. The stand-out point lately is that profit has accelerated for a second year and, among large peers, the firm carries the highest dividend yield (4.4%) and the lowest P/B (1.11x) while formalizing concrete shareholder-return goals; against that, securities-industry earnings ebb and flow with market conditions, and the modest dilution from the rights offering plus an ongoing lawsuit are conditions to weigh alongside.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- ROE is 10.9% (controlling-interest basis). It is above the sector average.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder NongHyup Financial Group 61.94% (corporate)
Controlling bloc incl. related parties 61.95%
With the controlling bloc holding 62%, control is very secure but the free float is thin.
🔎 In-depth analysis
- NH Investment & Securities makes money in four ways: intermediating retail and institutional trades in stocks and bonds for a commission (its trade-execution business), investment banking that helps companies raise capital (issuing corporate bonds and equity) and pursue mergers and acquisitions, wealth management that oversees and runs client assets, and proprietary trading in which the firm invests its own capital in bonds, equities and derivatives.
- The fact that its recent disclosures are dominated by “issuance-result reports for derivative-linked notes and derivative-linked securities” reflects the everyday activity of a large house that issues and sells products such as ELS and DLS in volume—it is not a sign of weakening results.
- What matters more than gross operating revenue is the net operating revenue and net profit left over across these four segments, and given the nature of the industry, that profit is heavily shaped by market conditions such as equity trading volumes, interest rates and market direction.
- The latest close is ₩29,250 and the market capitalization is ₩10.4 trillion.
- The price sits below its 20-day line (₩30,575) and below its 60-day line (₩32,528).
- Trading beneath both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (an auxiliary gauge that scores the strength of gains versus losses over the past 14 days on a 0–100 scale) is 44.3, a neutral level.
- The one-month change is -4.1%, the three-month change is -4.3%, and the position versus the 52-week high is -25.4%.
- Relative strength versus the KOSPI is 50 (1–99; a recency-weighted conversion of return versus the index over the past year, with higher meaning stronger than the market).
- That places it around the top 50% of all listed names by strength.
- Over the past three months it has lagged the index by 30.4%.
- Chart reading is best done together with volume and the dates on which disclosures occur.
- The P/E (how many times one year of profit the price represents) is 10.2x on last year's results, and the P/B (how many times net asset value the price represents) is 1.10x, a slight premium to book.
- ROE (how much is earned in a year on equity) is 10.9%—still short of the company's own 12% target but a steady level of profitability.
- The debt ratio (debt against equity) shows up at a very high 784%, but this reflects a structure specific to the financial industry: a securities company carries client deposits, repurchase-agreement (RP) liabilities and derivative-related liabilities on its balance sheet, which is entirely different in character from the borrowing burden of a manufacturer.
- Shareholders' equity is about ₩9.4 trillion, the scale of a top-tier domestic mega-IB, and the dividend yield of 4.4% (₩1,300 per share, a 47.3% payout) is among the highest of its large peers.
- The direction of profit is clearly upward.
- Net profit ran ₩556.4 billion in 2023 → ₩686.7 billion in 2024 → ₩1.0316 trillion in 2025, accelerating for two straight years (+23.4% → +50.2% year over year), while operating profit over the same span widened from ₩725.8 billion to ₩901.1 billion to ₩1.4206 trillion (+57.7%).
- In the first quarter of 2026 net profit reached ₩475.7 billion, up 128.5% year over year, and operating profit reached ₩636.7 billion, up 120.3%—a strong start in which a single quarter's net profit already equaled 46% of last year's full-year figure.
- That first-quarter result reflected a combination of rising trading volumes and improving market conditions; even if the remaining quarters are not as strong, full-year profit is likely to step up another notch from last year.
- In other words, the 10.2x P/E on last year's results is a figure from before profit stepped higher, and on this year's earnings the actual valuation comes in lower than that.
- In March 2026 the company declared a year-end dividend with a 47.3% payout (₩1,300 per share, ₩487.8 billion in total) and re-filed a “corporate value-up plan,” setting out the goal of “reaching a 1.0x P/B through a sustainable 12% ROE and predictable shareholder returns.” The plan pairs a standing base dividend of ₩500 with a performance-linked add-on and runs alongside share buybacks and cancellations.
- In June it decided on a third-party allotment rights offering subscribed by its largest shareholder, NongHyup Financial Group (about ₩400 billion, 12.86 million new shares at ₩31,100), bolstering funding for retail margin lending and for IB corporate loans and acquisition finance—growth investment meant to expand the business by raising capital, and a signal of the parent's confidence.
- That said, total shares outstanding rise by about 3.6%, a modest dilution factor for per-share metrics.
- In late June, following an extraordinary general meeting, the CEO was also changed.
- As a risk, an ongoing securities class action tied to a past product should be watched alongside the above.
- The strengths are clear.
- Profit has accelerated for a second year and surged in the first quarter; among large peers the dividend yield (4.4%) is the highest and the P/B (1.11x) the lowest; and the company itself has formalized concrete targets—a 12% ROE and a 1.0x P/B—along with share cancellations and a dividend floor.
- The parent's direct ₩400 billion capital injection can also be read as a commitment to growth.
- The point to note is that securities-sector earnings are inherently cyclical, ebbing and flowing with market conditions (trading volumes, interest rates, market direction); the strong first quarter cannot be assumed to repeat in the remaining quarters, and if the equity market contracts profit will be pressed down with it.
- ROE also still trails the peer leader (Kiwoom's 16.6%), so whether the 12% target is met is the key, and the modest dilution from the rights offering and the ongoing lawsuit are further factors to weigh.
- In sum, on dividend and asset-value terms it sits in the most attractive part of its peer group and its profit is in an upswing, but the durability of results depends on market conditions.
🔎 Valuation vs peers Fairly valued
A peer set of large and mid-sized domestic securities companies with a similar mix of trade execution, investment banking, wealth management and proprietary trading.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Mirae Asset Securities | 14.35x | 1.69x | 11.80% |
| Samsung Securities | 9.90x | 1.24x | 12.48% |
| Kiwoom | 7.42x | 1.23x | 16.61% |
On last year's results the 10.2x P/E is below Mirae Asset's (15.2x) within the peer group and roughly in line with Samsung and Kiwoom, but once you factor in that first-quarter net profit jumped to 2.3x the prior year, this year's valuation drops to the lowest end of the group. In particular, the 1.11x P/B is the lowest in the set and the 4.4% dividend yield the highest, so on asset-value and dividend terms it is among the cheapest of its peers. That said, its current ROE (10.9%) is the lowest in the group, which caps the upper bound on P/B, so whether the company reaches its stated 12% ROE target is the key to any re-valuation. Judging on last year's P/E alone would miss the earnings inflection; taken together with this year's profit and its dividend and net-asset metrics, it sits within a fair range and leans attractive on the dividend and asset-value side.
Price history Close · MA20 · MA60
The latest close is ₩29,250 and the market capitalization is ₩10.4 trillion. The price sits below its 20-day moving average (₩30,575) and below its 60-day moving average (₩32,528). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 44.3, a neutral level. The one-month change is -4.1%, the three-month change is -4.3%, and the position relative to the 52-week high is -25.4%. Relative strength versus the KOSPI is 50 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 50% of all stocks. Over the past three months it lagged the index by 30.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -30.41% / 6M -17.67% / 12M -38.72%
Key metrics vs sector median
Valuation
The P/E of 10.10x is in line with the sector median (8.97x). The P/B of 1.10x is above the sector median (0.45x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Profitability & financials
Return on equity (ROE) is 10.9%, above the sector average (6.0%). The debt ratio is 783.9%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | — | — | — | — |
| Operating profit | $481.0M | $597.2M | $941.5M | +57.65% ↑ faster |
| Net profit | $368.8M | $455.1M | $683.7M | +50.23% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | — | — | — |
| Operating profit | — | — | $481.0M | $597.2M | $941.5M |
| Net profit | — | — | $368.8M | $455.1M | $683.7M |
Operating profit rose 57.6% year over year. Profit is growing at an accelerating pace.
Latest quarterly results
No recent quarterly results confirmed from DART.
Technical indicators
What stands out
- The dividend yield, at 4.4%, is on the high side.
- ROE of 10.9% points to solid profitability.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-02FilingDecision on a third-party allotment rights offering to largest shareholder NongHyup Financial Group — 12,861,736 new shares at ₩31,100, raising about ₩400 billion. Proceeds are earmarked ₩200 billion for retail margin-lending funding and ₩200 billion for IB corporate loans and acquisition-finance investment.Strengthens capacity to expand the business by bolstering equity capital and confirms the parent's willingness to support growth (medium-term positive). Shares outstanding rise about 3.6%, a modest dilution to per-share metrics (short-term neutral to negative). New shares are slated to list on 2026-07-14 with a one-year mandatory lock-up. Source
- 2026-04-23EarningsFirst-quarter 2026 consolidated preliminary results (fair disclosure): operating profit ₩636.7 billion (+120.3% year over year), net profit ₩475.7 billion (+128.5% year over year).A strong result in which one quarter's net profit reached 46% of last year's full-year figure, supporting the case for full-year profit stepping up a notch (medium-term positive). Source
- 2026-03-27IRCorporate value-up plan (voluntary disclosure) re-filed: targeting “a 1.0x P/B through a sustainable 12% ROE and predictable shareholder returns,” pairing a standing base dividend of ₩500 with a performance-linked add-on and running alongside share buybacks and cancellations.The company formalizes concrete profitability and shareholder-return goals, providing a basis for a medium- to long-term re-valuation (medium-term positive). Source
- 2026-03-11Dividend2025 year-end cash dividend decided: ₩1,300 per common share (a 4.2% dividend-to-price ratio), ₩1,350 per preferred share, about ₩487.8 billion in total, a 47.3% payout (+48.6% versus the prior year's total).Reaffirms a high dividend level and a rising dividend trend, strengthening the appeal for dividend-oriented investors (medium-term positive). Source
- 2026-03-13Filing2025 annual report filed: full-year operating profit of ₩1.4206 trillion and net profit of ₩1.0316 trillion, confirming a record scale of earnings.Officially confirms the accelerating profit trend (medium-term positive). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-10Disclosure
- 2026-06-10Disclosure
- 2026-06-10Disclosure
- 2026-06-10Disclosure
- 2026-06-10Disclosure
- 2026-06-10Disclosure
- 2026-06-09Earnings disclosure
- 2026-06-09Disclosure
- 2026-06-09Disclosure
- 2026-06-08Earnings disclosure
- 2026-06-08Disclosure
- 2026-06-08Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.