Ask Warren

JONBUR Research · Update note

NH Investment & Securities · 005940 · Financials

NH Investment & Securities: Q3 Preliminary Operating Profit Up 33.2% Year on Year, Down 23.5% From Q2

Why this report

Written after:

NH Investment & Securities reported preliminary Q3 2026 consolidated operating profit of ₩521.1B, up 33.2% from a year earlier but down 23.5% from the prior quarter. The year-on-year growth supports the earnings trend in our earlier report, while the quarterly step-down shows that the H1 pace was not repeated.

Written Oct 26, 2026 · Data as of Oct 23, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

XfWATGr/in@

What happened

On 2026-10-26 the company published preliminary consolidated results for July to September 2026. These figures are provisional and may differ from final numbers.

Revenue was ₩6.78T, up 149.3% from ₩2.72T a year earlier but down 47.2% from ₩12.85T in Q2. Operating profit was ₩521.1B, up 33.2% year on year and down 23.5% from ₩681.2B in Q2. Pre-tax profit from continuing operations was ₩500.8B (up 34.6% year on year). Net income was ₩383.6B, up 35.5% year on year and down 21.6% from Q2. Net income attributable to owners of the parent was ₩383.6B.

For the first nine months, revenue was ₩28.53T (up 178.3%), operating profit was ₩1.84T (up 83.5%) and net income was ₩1.35T (up 80.3%). The filing excerpt is cut off before the nine-month parent-owner figure.

What it changes for the thesis

Our earlier report, published on 2026-10-13, described a strong earnings trend: net income of ₩1.03T in 2025 and ₩1.53T in the twelve months to H1 2026, with ROE of 16.1%. The Q3 figures are consistent with that. Nine-month net income of ₩1.35T is already well above the ₩1.03T reported for full-year 2025.

The nuance is the sequential decline. Q3 operating profit and net income were each more than 20% below Q2, so the pace has cooled. The earlier report also flagged very high leverage (liabilities to equity of 955.4%) and negative free cash flow. The new filing does not address those points. The data does not explain why the shares fell, and the filing gives no reason for the quarterly change.

What it changes for the valuation

The model estimate is based on the assumptions shown, not a target. It is ₩17,254 (bear), ₩26,893 (base) and ₩39,455 (bull) per share, using a 9.6% rate and data to H1 2026. The previous report had no model estimate, so there is no earlier range to compare. The latest share price is ₩23,300 (2026-10-23), below the base estimate and within the bear-bull range.

On current data the P/E is 5.6x, P/B is 0.8x and the dividend yield is 5.6%. These multiples do not yet reflect Q3 results. Over the past month the shares are down 10.4%, and 3-month return is -19.8%. Peers on P/E: Mirae Asset Securities 3.5x, Samsung Securities 4.7x, KIWOOM Securities 3.3x. The model has not been updated for the Q3 preliminary numbers.

Closing view

The Q3 preliminary numbers confirm strong year-on-year profit growth, supporting the earnings trend in the earlier report. However, profit fell more than 20% from Q2, the figures are provisional, and high leverage and negative free cash flow remain. The model estimate range is wide (₩17,254 to ₩39,455), showing considerable sensitivity to assumptions. The evidence points in both directions and is not a recommendation.

Model estimate of fair value

Bear
₩17,254
-29%
Base
₩26,893
+10%
Bull
₩39,455
+61%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the P/B vs ROE (excess return) model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 9.6%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 26, 2026Update noteEarningsNH Investment & Securities: Q3 Preliminary Operating Profit Up 33.2% Year on Year, Down 23.5% From Q2
  2. Oct 13, 2026InitiationNH Investment & Securities: Earnings Up Sharply, Shares Down 22.2% Over Three Months

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information