KOSPIFinance001720

Shinyoung Securities

₩139,400▲ 0.07%2026-10-02 close

Market Cap

₩2.3T

Turnover

₩1.9B

Volume

10,000 shares

Shares out.

16.4M

PER

8.4×

PBR

0.6×

EPS

₩17,575

Dividend Yield

—

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q2–2026Q1) · Prices as of the 2026-10-02 close

Report overview

Cancelling 32% of Shares, Living With Trading Swings

A mid-sized, March-fiscal-year brokerage with a wealth-management and trust franchise and a thick capital base, whose quarterly results swing sharply with proprietary trading gains, is now executing a large shareholder-return event: cancelling 32% of its issued shares.

1
In fiscal 2025 (April 2024 to March 2025) operating revenue was KRW 2,466.4bn, operating profit KRW 136.1bn and net profit attributable to owners KRW 108.6bn, all down from the prior year's KRW 2,764.3bn, KRW 170.4bn and KRW 142.6bn.
2
The latest confirmed quarter (Q1 of fiscal 2026) posted operating revenue of KRW 1,663.1bn, operating profit of KRW 121.1bn and net profit to owners of KRW 90.8bn, far above the year-earlier quarter's KRW 901.7bn, KRW 75.7bn and KRW 59.1bn.
3
At its June 2026 annual general meeting the company tabled the cancellation of 5,262,283 shares (32.01% of issued shares) out of 8,422,754 treasury shares (51.23% of issued shares), saying the remaining 3,160,471 would be used for in-kind dividends and employee compensation.
4
The cash dividend per common share was raised 50% year on year, lifting the total payout by roughly KRW 20bn, and the company said shareholders should qualify for separate taxation as a high-dividend payer.
5
Korea's brokerage industry boomed on surging daily turnover in the first half of 2026, but KOSPI average daily value fell to a year-to-date low in early August, reviving debate over whether earnings peaked in the second quarter.

Business structure

Founded in 1956, Shinyoung Securities is one of Korea's oldest brokerages, closes its books in March, and operates across brokerage, proprietary trading, underwriting and wealth management.

Company materials describe wealth management, investment banking, over-the-counter derivatives and overseas business as its four focus areas, with securities brokerage, related margin lending and proprietary dealing cited as core revenue sources.

Retail operations are organised under the premium wealth brand APEX; in August 2026 the firm relocated and reopened its APEX Seomyeon branch in Busan as a digital-plus-face-to-face outlet linked in real time to the head-office digital strategy unit.

Trust services covering inheritance, gifting and guardianship sit in the Heritage Solution division, whose head said in a 2026 interview that will-substitute, gift and guardianship trusts are growing in parallel and that trusts are treated as succession-planning tools rather than a single product.

Subsidiary Shinyoung Asset Management has espoused value investing since its 1996 founding and offers growth-equity funds through a partnership with Baillie Gifford of the UK, giving the group a vertically linked manufacturing and distribution chain.

Competitively, the firm sits well below capital heavyweights such as Mirae Asset Securities, Korea Investment & Securities, Samsung Securities and Kiwoom Securities, and its model leans on affluent-client management and investment income rather than retail market-share battles.

WiseReport's company profile notes that expanded securities valuation and disposal gains and firm proprietary equity dealing lifted profitability in the latest quarter, that the net capital ratio stood at 981.7%, and that the credit rating is maintained at AA-.

Korea Investors Service assigns an issuer rating of AA- with a stable outlook as of its 15 May 2026 review. In short, proprietary investment results and the wealth and trust franchise, more than brokerage share, drive the profit and loss.

Earnings trend

Quarterly revenue · Operating profit

₩901.7B₩75.7B25Q1₩458.5B₩36B25Q2₩705.1B₩37B25Q3₩401.2B-₩12.6B25Q4₩1.7T₩121.1B26Q1

RevenueOperating profit

Annual revenue · Operating profit

₩2.4T₩115.6B2023₩2.8T₩170.4B2024₩2.5T₩136.1B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q1	₩901.7B	₩75.7B	8.4%
2025Q2	₩458.5B	₩36B	7.9%
2025Q3	₩705.1B	₩37B	5.3%
2025Q4	₩401.2B	-₩12.6B	−3.2%
2026Q1	₩1.7T	₩121.1B	7.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2023	₩2.4T	₩115.6B	₩96.4B	4.9%	6.6%	564.3%
2024	₩2.8T	₩170.4B	₩142.6B	6.2%	8.8%	528.4%
2025	₩2.5T	₩136.1B	₩108.6B	5.5%	6.2%	466.4%

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

Earnings analysis

On a confirmed basis, fiscal 2025 (April 2024 to March 2025) operating revenue was KRW 2,466.38bn, operating profit KRW 136.15bn and net profit attributable to owners KRW 108.63bn.

Against fiscal 2024's operating revenue of KRW 2,764.26bn, operating profit of KRW 170.38bn and owners' net profit of KRW 142.65bn, both top line and earnings declined, and the operating margin slipped from 6.2% to 5.5%.

Still, that profit base sits above fiscal 2023 (operating revenue KRW 2,353.52bn, operating profit KRW 115.63bn, margin 4.9%). The quarterly path shows pronounced volatility.

Fiscal 2025 opened with first-quarter revenue of KRW 901.67bn and operating profit of KRW 75.73bn, then slowed to KRW 458.46bn and KRW 36.03bn in the second quarter and KRW 705.10bn and KRW 37.02bn in the third, before a fourth quarter with revenue of KRW 401.15bn, an operating loss of KRW 12.64bn and a net loss to owners of KRW 3.67bn.

By contrast, the latest confirmed quarter, the first quarter of fiscal 2026, delivered revenue of KRW 1,663.11bn, operating profit of KRW 121.07bn and owners' net profit of KRW 90.84bn, meaning a single quarter captured a large share of the prior full year's operating profit.

On the balance sheet, total equity rose from KRW 1,535.2bn in fiscal 2023 to KRW 1,832.69bn in fiscal 2025, while the debt-to-equity ratio fell from 564.3% to 528.4% and then 466.4% (brokerages structurally carry high ratios because of customer deposits and borrowings).

Operating cash flow swung from an inflow of KRW 518.40bn in fiscal 2023 to outflows of KRW 664.51bn in fiscal 2024 and KRW 442.11bn in fiscal 2025, a line that reflects changes in trading and lending assets and can therefore diverge from reported profit.

Separately, in a 15 April 2026 filing the company reported operating profit of KRW 191.19bn (up 40.4%), operating revenue of KRW 3,131.23bn and net profit of KRW 149.65bn for April 2025 to March 2026, but stated these were preliminary figures not yet subject to completed external audit.

Industry analysis

Korea's securities industry in 2026 is passing through a phase in which exploding turnover drove earnings.

The Korea Capital Market Institute wrote in February 2026 that 2025 net operating revenue grew broadly across brokerage, proprietary trading, investment banking and product sales and wealth management, and that improving sentiment and productive-finance policy would support 2026 growth.

Shinhan Investment, in a May 2026 report, set a second-half KOSPI band of 7,000 to 9,300 points with a base-case daily turnover of KRW 113.1tn including ETFs, framed the sector as entering a structural earnings cycle, and flagged pre-market and after-market sessions plus the KOSDAQ tiering system as turnover variables. iM Securities estimated in July 2026 that second-quarter daily turnover ran near KRW 118tn, with June around KRW 137.5tn.

The direction reversed later in the year, however. Hankook Ilbo reported that KOSPI daily turnover fell to KRW 26.28tn during 3 to 7 August 2026, the lowest of the year, and in the same article a Yuanta Securities analyst said brokerage earnings likely peaked in the second quarter given the turnover decline.

An LS Securities analyst told Invest Chosun in July 2026 that average price-to-book multiples at major brokers already exceed one time, making the sector relatively less attractive within financials in that analyst's view.

Structurally, the capital gap matters: the Korea Capital Market Institute noted that large firms accounted for KRW 7.4tn of the industry's KRW 9.8tn equity increase in 2025, and new licences such as issued notes and IMA are concentrated among them.

Within that landscape, Shinyoung is positioned to differentiate through proprietary investment income and an affluent-client and trust franchise rather than the turnover leverage of large retail platforms.

Outlook

Based on confirmed facts, the earnings path hinges on two variables: proprietary investment results and market turnover.

In its 15 April 2026 filing the company attributed the change in April 2025 to March 2026 results mainly to higher income from financial-instrument operations, underlining that investment income, more than fees, anchors the profit and loss. On capital policy the calendar is explicit.

In a 4 June 2026 disclosure the company tabled its treasury-share cancellation and utilisation plan for the annual general meeting, and said the timing and method for disposing of the remaining 3,160,471 treasury shares would be approved at a shareholder meeting before September 2027.

A company official said the aim was to fix the cancellation size ahead of the statutory deadline and to signal that the residual block would also serve shareholder value.

On the business side, succession and trust demand from a super-aged society is presented as a structural growth axis, and the Heritage Solution division is expanding bundled will-substitute, gift and guardianship trust designs against forecasts that dementia-linked assets in Korea could approach KRW 500tn by 2050.

In retail, the firm says it is pursuing a branch strategy that links digital and face-to-face channels around the APEX brand.

Industry-wide, however, commentary continues to point to a slow recovery in investment banking and real estate project financing, so the scope for fee lines to offset swings in investment income may be limited.

No quantitative company guidance has been identified, so the next confirmed data points will come through the semi-annual and quarterly reports.

Valuation

PER

8.4×

PBR

0.6×

ROE

7.4%

EPS

₩17,575

BPS

₩247,597

Dividend per share

—

Two idiosyncrasies frame the valuation discussion here.

First, the shares trade clearly below reported book value per share, the opposite side of the industry picture described by an LS Securities analyst in a July 2026 Invest Chosun interview, who noted that average price-to-book multiples at major brokers already exceed one time.

Second, roughly half of issued shares were treasury stock and a cancellation covering 32.01% of issued shares has been set in motion, so the denominator behind per-share metrics is itself changing.

The earnings multiple also sits toward the lower end of the domestic brokerage group, but the last four quarters of profit blend in investment gains that vary sharply by quarter, which limits the stability of that multiple.

On dividends, the company said it raised the per-share payout by 50% for the latest fiscal year, lifting the total distribution by about KRW 20bn, and expects shareholders to benefit from separate taxation as a high-dividend payer.

The watch point is whether the discount to net assets narrows as cancellation and higher payouts take effect, or whether swings in investment income and softer market turnover keep questions about earnings quality in place.

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

Bull factors

A structural capital action: cancelling 32% of shares

In a 4 June 2026 filing the company tabled cancellation of 5,262,283 shares (32.01% of issued shares) out of 8,422,754 treasury shares equal to 51.23% of the total.

The statutory deadline is September 2027, but the decision was brought forward by more than a year, with the company saying it wanted to remove uncertainty about its unusually large treasury holding.

It also set out that the remaining 3,160,471 shares would not simply be held but used for in-kind dividends and employee performance compensation. Because cancellation directly alters the share count, the basis for per-share calculations changes.

Thick capital buffer and an AA- rating

WiseReport's company profile notes a net capital ratio of 981.7% and a maintained AA- credit rating. Korea Investors Service likewise assigns an issuer rating of AA- with a stable outlook as of 15 May 2026.

On confirmed financials, total equity rose from KRW 1,535.2bn in fiscal 2023 to KRW 1,832.7bn in fiscal 2025 while the debt-to-equity ratio fell from 564.3% to 466.4%. In an environment of rising funding and margin costs, that capital cushion can act as a defensive factor.

Succession and trust demand as a non-cyclical axis

The head of the Heritage Solution division said in a 2026 interview that will-substitute, gift and guardianship trusts are growing in parallel and that trusts are treated as tools for building succession strategies. The same article cited forecasts that dementia-linked assets in Korea could approach KRW 500tn by 2050.

Trust and succession fees are less tied to the turnover cycle and can therefore temper the volatility of the revenue mix. That said, the segment's revenue contribution is not separately disclosed in available materials.

Bear factors

Very wide quarter-to-quarter swings

Quarterly operating profit in fiscal 2025 lurched from KRW 75.7bn to KRW 36.0bn to KRW 37.0bn and then to a loss of KRW 12.6bn, with a KRW 3.7bn net loss to owners in the fourth quarter. By contrast, the first quarter of fiscal 2026 delivered operating profit of KRW 121.1bn and owners' net profit of KRW 90.8bn.

Amplitude of that scale means investment results, not fees, set the outcome, and the company itself cited higher income from financial-instrument operations in its April 2026 filing. It is therefore hard to read any single quarter as a trend.

Slowing turnover and the sector peak-out debate

Hankook Ilbo reported that KOSPI daily turnover was KRW 26.28tn during 3 to 7 August 2026, the lowest of the year, after already falling to KRW 36.88tn in July.

In the same article a Yuanta Securities analyst judged that brokerage earnings peaked in the second quarter, while a KB Securities analyst pointed to possible retail investor attrition from accumulated volatility fatigue.

An LS Securities analyst said in June 2026 that market-cap turnover had stopped rising from historic highs and flagged exhausted margin-lending limits and a potential decline in valuation and disposal gains on large investment assets as second-half uncertainties. The read-across is that fee and investment conditions may be less supportive than in the first half.

Capital gap and exclusion from new licences

The Korea Capital Market Institute noted that large firms took KRW 7.4tn of the industry's KRW 9.8tn equity increase in 2025 and projected the capital gap between larger and smaller houses would widen further in 2026.

Capital-based new businesses such as issued notes, IMA and corporate credit extension are concentrated among the largest players, creating an uneven starting line for revenue diversification. Shinyoung's total equity was KRW 1,832.7bn in fiscal 2025, far below the top-tier capital cohort. In brokerage share competition, operating leverage may also be more limited than at large online platforms.

Risk factors

Market and investment risk

Because a large share of profit depends on valuation and disposal gains on securities, moves in equity and bond prices feed straight into quarterly results. The fourth quarter of fiscal 2025 produced an operating loss of KRW 12.6bn, and the annual operating margin on confirmed figures fell from 6.2% to 5.5%.

The Korea Capital Market Institute flagged domestic interest-rate uncertainty as a risk for proprietary trading in 2026. A change in the rate path could widen swings in the bond book.

Liquidity and funding risk

On confirmed figures, operating cash flow was negative for two consecutive years, with outflows of KRW 664.5bn in fiscal 2024 and KRW 442.1bn in fiscal 2025. For a brokerage this line largely reflects changes in trading assets, but a deteriorating funding backdrop would raise the burden.

Invest Chosun reported in July 2026 that wider ETF trading and higher volatility increased margin requirements for liquidity providers, with industry issuance of high-yield commercial paper and short-term electronic notes averaging KRW 134tn a month in the second quarter, roughly triple the KRW 46tn monthly average a year earlier. The debt-to-equity ratio of 466.4% is also high in absolute terms.

Regulatory and policy risk

The third amendment to the Commercial Act requires treasury shares acquired after enforcement to be cancelled within one year, and shares acquired before enforcement to be cancelled by September 2027 or managed under a holding and disposal plan approved by shareholders.

The company moved ahead of that deadline, but the method and timing for the remaining 3,160,471 treasury shares are still to be fixed via shareholder approval before September 2027.

The Korea Capital Market Institute also listed improved real estate project financing risk management and a shift in data-protection practices among the industry's 2026 issues. Depending on how rules evolve, capital policy and the pace of business expansion could be affected.

What to watch next

Mid-November 2026
The semi-annual report covering April to September 2026 for this March-fiscal-year company. It will be the first confirmed data showing how much the post-August turnover slump fed into fee income and investment results, and whether the elevated profit level of the first fiscal quarter held.
September to December 2026
Check DART for actual execution of the 5,262,283-share cancellation and any filing on a change in total issued shares. Once completed, the denominator for per-share metrics shifts, so financial comparisons need to reflect the new basis.
Fourth quarter of 2026
Trends in daily turnover and market turnover ratios after the Korea Exchange introduces pre-market and after-market sessions and the KOSDAQ tiering system. Whether these changes, cited by Shinhan Investment in May 2026 as turnover drivers, translate into real trading activity will shape the sector's fee base.
Mid-February 2027
The quarterly report for October to December 2026. It will be the point to assess how far fee-based lines such as wealth management and trusts offset swings in investment income during a brokerage slowdown.
May to June 2027
Scheduled credit rating reviews by agencies such as Korea Investors Service, the fiscal 2027 full-year results and dividend decision, and whether the disposal plan for the remaining 3,160,471 treasury shares is tabled. The company said it would seek shareholder approval before September 2027, making the annual meeting the key checkpoint.

Overall view

Shinyoung Securities is a mid-sized, March-fiscal-year brokerage whose confirmed fiscal 2025 results showed operating revenue of KRW 2,466.4bn, operating profit of KRW 136.1bn and net profit to owners of KRW 108.6bn, all lower than the prior year, with the operating margin easing from 6.2% to 5.5%.

The latest confirmed quarter, the first of fiscal 2026, produced operating profit of KRW 121.1bn and owners' net profit of KRW 90.8bn, close to a full prior-year haul in a single quarter, and that amplitude itself shows how tightly the profit and loss tracks proprietary investment results.

Total equity has risen for three straight years while the debt-to-equity ratio fell from 564.3% to 466.4%, and the maintained net capital ratio of 981.7% and AA- rating are cited as buffers.

On capital policy, June 2026 filings confirmed cancellation of treasury shares equal to 32.01% of issued stock and a 50% increase in the per-share dividend, while the disposal plan for the residual treasury block still requires shareholder approval before September 2027.

Industry conditions saw surging turnover lift sector profits in the first half of 2026, but KOSPI daily turnover fell to a year-to-date low in August, keeping the peak-out debate alive alongside a structural capital gap as larger houses monopolise new licences.

The bullish case rests on a thick capital base, a large shareholder-return programme in execution and succession and trust demand; the bearish case rests on earnings volatility from investment-income dependence, softening turnover and the capital gap. This report is for information purposes only and contains no buy or sell opinion or target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.