PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩370 per share · Prices as of the 2026-10-02 close
Hyundai Motor Securities has sustained a net-profit recovery on strong retail growth, but weak IB and asset-management results plus reliance on one-off gains remain unresolved challenges.
2025 annual net income attributable to owners rose to KRW 57.7bn, up about 60% from KRW 36.2bn in 2024, extending a recovery trend.
In September 2026 the company split its IB unit into a structured-finance division and a corporate-finance division to reduce real-estate PF reliance and expand into DCM, IPO and M&A business.
In H1 2026, brokerage and financial-product net operating revenue grew sharply year on year, while asset-management and IB net operating revenue both fell significantly, highlighting a wide divergence across business lines.
The firm has rolled out its internal AI assistant 'HAI 1.0' and is preparing to launch the company-wide AI platform 'HAI 2.0' in the second half of the year.
Real-estate financing exposure still stands at about 87% of equity, a level credit rating agencies continue to flag as a risk factor.
Hyundai Motor Securities is a mid-tier, full-service brokerage affiliated with the Hyundai Motor Group, holding a middling market position across most business lines.
According to a credit rating agency, the 2025 net operating revenue mix was roughly 14% proprietary trading and investment, 33% brokerage (retail), 12% wealth management, and 41% investment banking, making IB and retail the two largest pillars.
The IB segment had weakened amid the real-estate project-finance (PF) downturn but has since recovered its share of revenue toward historical levels as new deal origination expanded.
On September 1, 2026, the firm split its previously unified IB organization into a 'Structured Finance Division' and a 'Corporate Finance Division'; the former focuses on PF and alternative investment, while the newly created latter plans to first build out debt capital markets (DCM) business before expanding into IPOs, M&A and other equity capital markets (ECM) areas.
On the retail side, the company signed advisory agreements with a law firm and a tax firm to strengthen family-office services for ultra-high-net-worth clients, folded its pension organization under the retail division, and set up a dedicated defined-contribution (DC) sales unit.
Pension assets under management reached KRW 19.14 trillion in H1 2026, up 6.7% year on year, though the firm's industry ranking slipped from second at end-2024 to fourth at end-2025 as Mirae Asset Securities, Samsung Securities and Korea Investment & Securities grew faster.
A rating agency has incorporated a one-notch group-support uplift into the firm's credit rating, citing the recognized likelihood of parental support given the credit and scale gap with Hyundai Motor and its strategic importance.
Real-estate financing exposure, including guarantees and private bond commitments, stood at about 87% of equity.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | — | ₩27B | — |
| 2025Q3 | — | ₩14.1B | — |
| 2025Q4 | — | ₩4B | — |
| 2026Q1 | — | ₩32.3B | — |
| 2026Q2 | — | ₩19.1B | — |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.2T | ₩114.6B | ₩87.1B | 9.7% | 7.1% | 735.6% |
| 2023 | ₩1.6T | ₩65.2B | ₩53.5B | 4.1% | 4.2% | 806.7% |
| 2024 | ₩1.8T | ₩54.7B | ₩36.2B | 3.0% | 2.8% | 821.0% |
| 2025 | — | ₩72.3B | ₩57.7B | — | 4.0% | 758.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
On an annual basis, operating profit fell from KRW 114.57bn and net income of KRW 87.10bn in 2022 to operating profit of KRW 65.17bn and net income of KRW 53.51bn in 2023, then declined further to operating profit of KRW 54.69bn and net income of KRW 36.15bn in 2024 amid continued real-estate PF impairment effects.
In 2025, operating profit recovered to KRW 72.25bn and net income attributable to owners rose markedly to KRW 57.74bn, marking a clear turn toward recovery.
Equity grew steadily from KRW 1.2246tn in 2022 to KRW 1.4433tn in 2025, while the debt ratio eased somewhat from 806.7% in 2023 and 821.0% in 2024 to 758.9% in 2025.
Cash flow, however, swung widely year to year: operating cash flow was a deeply negative KRW -1.6155tn in 2023, turned positive at KRW 94.10bn in 2024, and reverted to KRW -153.61bn in 2025, reflecting the volatility inherent in a securities firm's funding operations.
On a quarterly basis, operating profit fell from KRW 27.03bn (net income KRW 20.73bn) in Q2 2025 to KRW 14.08bn (KRW 12.22bn) in Q3 and KRW 4.05bn (KRW 5.50bn) in Q4, before rebounding sharply to KRW 32.31bn (KRW 26.59bn) in Q1 2026; in Q2 2026 operating profit slipped to KRW 19.12bn quarter on quarter even as net income rose to KRW 32.72bn.
This pattern suggests that while retail revenue growth continued, non-operating items including a settlement payment linked to asset management activity drove the net-income increase.
Net income attributable to owners over the trailing four quarters (Q3 2025 through Q2 2026) totaled roughly KRW 77.04bn, showing that the annual recovery trend has carried through into the quarterly data.
Operating profit over the same window improved more modestly, however, indicating that a meaningful portion of the net-income gain stemmed from one-off items—a point worth weighing when assessing the quality of the earnings recovery.
The domestic securities industry is showing a clear performance divergence between firms that benefited from expanding KOSPI trading volumes to boost brokerage and financial-product revenue, and those still weighed down by weak real-estate PF and asset-management businesses.
Hyundai Motor Securities exhibited this same split internally in H1 2026, with brokerage and financial-product net operating revenue up 124.9% year on year even as asset-management net operating revenue plunged 78.4% and IB net operating revenue fell 33.9%.
An industry source noted that "retail strength alone makes it hard to sustain a securities firm's overall revenue structure,
In restructuring its IB organization in September 2026 into structured-finance and corporate-finance divisions, the company laid out a plan to first build up its DCM business and general corporate-bond network before broadening into ECM areas such as IPOs and M&A over the medium to long term.
On the retail side, the firm is expanding AI-based investment information through its new mobile trading system 'Naeil' and strengthening client-service competitiveness via offerings such as a robo-advisor discretionary service for retirement pensions.
On AI transformation, the company has already deployed its internal work-support tool 'HAI 1.0' and is preparing to launch the company-wide platform 'HAI 2.0' in the second half of the year, which will let employees build their own task-specific AI agents, with a further 'HAI 3.0' extension to customer-facing services planned for 2027.
In IB, the firm has stated it will continue to seek out non-real-estate investment opportunities such as renewable energy and data centers, anticipating that real-estate market uncertainty will persist through the second half.
Management itself has framed the key question as whether the organizational changes across derivatives, research, and now IB will translate into tangible profitability improvement visible in second-half results.
CEO Bae Hyung-geun took office in March 2024 and faces the end of his term in March 2027, with the recovery of core-business competitiveness widely seen as the variable that will determine whether his term is renewed.
Hyundai Motor Securities' shares tend to trade at a meaningful discount to net asset value, suggesting the market is assigning relatively modest value versus the firm's equity base.
Looking at the multi-year earnings trajectory, profitability contracted toward near break-even levels in 2023–2024 before turning into a clear recovery from 2025 onward, and how this earnings recovery feeds through to share pricing over time bears continued observation.
The company has a history of maintaining an annual cash dividend, but given that a substantial portion of net income has stemmed from one-off items, the sustainability of future payouts may hinge on how quickly core-business profitability recovers.
Within the brokerage sector, a valuation divergence is underway between firms benefiting from retail strength and those still weighed down by weak IB and asset-management results, making relative positioning versus peers worth monitoring alongside the company's own trend.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Brokerage and financial-product net operating revenue rose 124.9% year on year in H1 2026, driving the overall earnings improvement. This is interpreted as reflecting strengthened revenue-generating capacity in retail as the firm responded effectively to expanded trading volumes.
Digital channel enhancements, including the new 'Naeil' MTS and AI investment-information services, are underpinning this growth.
Splitting into structured-finance and corporate-finance divisions reflects an intent to broaden the revenue base from PF-centric structured finance toward DCM, IPO and M&A business.
The corporate-finance division has set up dedicated bond intermediation/underwriting and corporate-coverage teams aimed at strengthening deal-sourcing capability. If successfully embedded, this could contribute to greater stability and diversification of IB revenue.
The firm was reportedly the first small-to-mid-sized brokerage to deploy a cloud-based AI work-support service, 'HAI 1.0,' and is preparing to launch 'HAI 2.0' in the second half. Pension-specialized agents, among others, are expected to boost productivity in customer-facing sales operations. Plans to extend AI to customer-facing services in 2027 could form the basis of new business lines.
Asset-management net operating revenue plunged 78.4% and IB net operating revenue fell 33.9% in H1 2026. The IB segment also booked KRW 26.1bn in provisions for asset-quality management.
Retail growth largely offset the weakness in other segments, but total net operating revenue across all business lines was essentially flat year on year.
Net-income gains were partly supported by disposal gains from selling a Seoul office investment asset in 2025, and by an asset-management-related settlement payment in H1 2026.
The recurring pattern of operating-profit growth lagging net-income growth raises questions about earnings quality, and the possibility that profit levels could recede once these one-off factors fade cannot be ruled out.
Real-estate financing exposure remains high, reportedly around 87% of equity. If the real-estate PF market remains subdued, the burden of managing exposure within the newly named structured-finance division could increase.
A credit rating agency has noted that non-recurring losses or risk-management failures could weigh on capital adequacy.
Real-estate financing exposure at roughly 87% of equity implies high sensitivity to real-estate market swings. A mix of private bonds, guarantees and credit facilities means that deterioration in individual deals could have a compounding effect on capital.
While the structured-finance division has pledged a 'selective focus' strategy, actual default-rate trends warrant ongoing monitoring.
The brokerage and financial-product net operating revenue that drove H1 2026 improvement is inherently sensitive to shifts in stock-market trading volumes. Should trading activity slow, retail growth could decelerate, making it harder to offset weakness in other segments.
An industry source has similarly noted that retail strength alone is insufficient to stabilize the overall revenue structure.
The credit rating incorporates a one-notch uplift reflecting the perceived likelihood of support from Hyundai Motor Group in a crisis. This means that any change in the group's overall creditworthiness or willingness to provide support could, in turn, affect Hyundai Motor Securities' own rating. Group linkage is thus both a source of strength and a channel of exposure to external changes.
Check whether the company-wide AI platform 'HAI 2.0' actually launches and the initial scope of its use, such as pension-specific agents.
Preliminary Q3 2026 earnings disclosures will offer an early read on the newly created corporate-finance division's initial deal performance and whether segment-level net operating revenue is recovering.
Track the trajectory of real-estate financing exposure (about 87% of equity) and related provisions in upcoming business reports and credit-rating updates.
CEO Bae Hyung-geun's term expires, making it worth checking whether he is reappointed based on core-business performance and what direction any follow-on management strategy takes.
Having passed through a period of earnings contraction from 2022 to 2024, Hyundai Motor Securities has shown a clear net-income recovery from 2025 onward, driven in particular by growing brokerage and financial-product revenue in retail.
By contrast, asset management and IB saw sharply lower net operating revenue even in H1 2026, underscoring a pronounced divergence across segments, and the fact that a significant portion of the net-income increase stemmed from one-off items such as asset-disposal gains or settlement payments is worth weighing when assessing earnings quality.
In September 2026 the company split its IB organization into structured-finance and corporate-finance divisions in an effort to diversify into DCM, IPO and M&A business, and it has continued proactive investment on the AI-transformation front, having activated 'HAI 1.0' and preparing to launch 'HAI 2.0'.
At the same time, risk factors remain, including real-estate financing exposure still at roughly 87% of equity and brokerage revenue's sensitivity to swings in stock-market trading volumes.
The credit rating includes an uplift reflecting the possibility of group support from Hyundai Motor Group, meaning the group linkage functions as both a strength and a source of exposure.
Over the coming quarters, the deal performance of the newly created corporate-finance division, the tangible efficiency gains following the HAI 2.0 launch, and the trajectory of real-estate PF exposure management are likely to be the key variables determining whether the earnings recovery proves durable.
Report written 2026-09-05 · Data as of 2026-09-04
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