Mirae Asset Securities upgraded JB Financial Group's investment rating from neutral to buy on July 27, citing increased investment attractiveness due to the company's treasury share buyback plan amid stock undervaluation. The brokerage maintained its target price at 35,000 won. JB Financial Group disclosed on July 23 that it recorded 219.6 billion won in net profit attributable to controlling interests in Q2 2026, a 5.7% increase year-over-year, and announced plans to purchase 100 billion won in treasury shares by January next year. Mirae Asset Securities analyst Jung Tae-jun stated the company's shareholder return rate is expected to exceed 50% this year on a treasury share buyback basis, noting the Korean stock trades at an absolute undervaluation despite an estimated shareholder return yield around 8%.
JB Financial Group Discloses Q2 Earnings and Treasury Share Buyback Plan
JB Financial Group disclosed on July 23 that it recorded 219.6 billion won in net profit attributable to controlling interests in Q2 2026, representing a 5.7% increase compared to the same period last year. During a conference call the following day, the company announced plans to purchase an additional 100 billion won worth of treasury shares by January next year, with 82 billion won worth of purchases to be completed by year-end.
Mirae Asset Securities Assesses Financial Metrics and Profitability Outlook
Mirae Asset Securities assessed that JB Financial Group's quarterly net profit attributable to controlling interests met the consensus estimate of 212.6 billion won. The brokerage projected the company's shareholder return rate for this year to exceed 50% on a treasury share buyback basis.
Analyst Jung Tae-jun stated, "While the group's quarterly net interest margin declined 1bp (0.01 percentage point) compared to the previous quarter, the 10bp improvement in the loan loss provision ratio compared to the previous quarter is encouraging." He added, "Although the absolute level of the loan loss provision ratio is high, the net interest margin level is also correspondingly high, so double-digit ROE (return on equity) will continue."
Analyst Identifies Stock Price Underperformance Factors
Jung noted that the stock price has underperformed since February, attributing this to several factors: continuous on-market sales during treasury share buybacks and cancellations due to the major shareholder reaching holding limits, the potential for second-largest shareholder Align Partners to sell up to 15% of its stake, and concerns that JB Woori Capital's asset quality could deteriorate rapidly if interest rates continue to rise.
Mirae Asset Securities Highlights Valuation and Competitive Positioning
Jung stated, "Even considering all factors, JB Financial Group's estimated shareholder return yield for this year is around 8%, which we judge to be an absolute undervaluation level." He added, "As major commercial banks have announced shareholder returns that fall short of market expectations despite recent stock price strength, JB Financial Group's relative competitiveness will be further highlighted."
Mirae Asset Securities provides investment opinions in four levels: buy, trading buy, neutral, and sell.
FAQ
What rating did Mirae Asset Securities assign to JB Financial Group on July 27?
Mirae Asset Securities upgraded JB Financial Group's investment rating from neutral to buy on July 27, maintaining its target price at 35,000 won.
What earnings did JB Financial Group report for Q2 2026?
JB Financial Group disclosed on July 23 that it recorded 219.6 billion won in net profit attributable to controlling interests in Q2 2026, a 5.7% increase year-over-year.
What treasury share buyback plan did JB Financial Group announce?
During a conference call on July 24, JB Financial Group announced plans to purchase 100 billion won worth of treasury shares by January next year, with 82 billion won worth of purchases to be completed by year-end.
