🌰 Korea Investment Holdings: A tug-of-war between the share-price drop and earnings - 2026.10.23

Hi, it’s Acorn, your sector correspondent 🌰 Today, we’re looking at where Korea Investment Holdings stands as securities stocks across the board have been battered. The share price has fallen, but news reports say to focus on earnings rather than the size of the drop—that contrast is the key point.

🔗 Share prices fell, but attention is on earnings

Korea Investment Holdings closed at ₩146,400 on October 22, down -3.30%, then recorded a -1.76% decline to ₩144,800 on the 23rd. Trading volume also fell to 75,046 on the 23rd, suggesting the market is becoming quieter. Securities stocks have been hit hard across the board, so it’s difficult to view this as an event affecting just one company. News reports also said that peers such as Hanwha Investment & Securities, Kiwoom Securities, and Daishin Securities fell sharply over the same period ^[3]. To Acorn, this looks more like a headwind for the industry.

⚙️ Why the commission value chain is under pressure

Structurally, brokerage is one of the major revenue streams for securities firms. When trading declines, commissions fall; when commissions fall, earnings expectations are lowered; and share prices tend to follow those expectations. That chain is the key. According to a report, assuming brokerage revenue falls by about 40%, Korea Investment Holdings is expected to see a bigger earnings decline than Kiwoom Securities ^[1]. The important point is that this is a forecast cited by the article, not confirmed company results. The same article’s headline also forecasts that NH Investment & Securities and Samsung Securities will hold up earnings through diversified revenue streams ^[1]. Looking one step deeper, it suggests that securities firms differ in how heavily they rely on the single revenue stream of commissions.

🏭 Book value and group expansion, laid out on the board

Looking one step further, PBR offers a useful lens. Korea Investment Holdings’ PBR, which stood at 1.07x at the end of the first half, has recently fallen to 0.74x. Samsung Securities, NH Investment & Securities, and Kiwoom Securities have also declined. According to the article, Mirae Asset Securities is the only firm to have maintained a PBR above 1x ^[2]. Line up the securities stocks on the board, and the picture looks like this: first, firms with a case for earnings resilience, such as NH and Samsung, backed by expectations for diversified revenue; second, firms to watch for a possible PBR re-rating; third, the group expansion angle. On that front, Korea Investment Accelerator has teamed up with a Japanese venture capital firm to help Korean startups expand overseas ^[4]. However, this is news about business direction, and the article does not say how much it will contribute to earnings. It seems best to look at the direction without reading into numbers that aren’t there.

🤔 One question remains

So here’s the question: with expectations for commission revenue already lowered and PBR down to 0.74x, has the market fully priced that in, or will the stock move again if the earnings outlook changes? Acorn thinks it remains an open question whether earnings resilience and the valuation of book value will move together.

📰 Reference News (4)

1

Despite a 40% plunge in brokerage… NH and Samsung seen holding up earnings through revenue diversification

네이버뉴스 · 2026.10.22

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2

Securities stocks’ PBRs fall further… Mirae Asset Securities is the only one above 1x

네이버뉴스 · 2026.10.22

📰 View original

3

Securities stocks halved; earnings matter more than the drop… Samsung, Kiwoom, and NH in focus

네이버뉴스 · 2026.10.23

📰 View original