Mirae Asset Securities Co Ltd (XKRX:006800) (Q2 2026) Earnings Call Highlights: Record Profit ...

Q & A Highlights

Q: Can you share your long-term direction and the status of your overseas and new businesses, given that your differentiated business structure seems to lead to higher stock price volatility? A: (Unidentified Company Representative) Our business structure is differentiated, but our stable revenue base from WM, pensions, global business, and flow trading accounts for a large proportion and is growing steadily. We are also discovering innovative businesses overseas and domestically for additional returns. Global business takes up more than 20% of our total business, making us one of the rare net-export financial institutions. We are most actively preparing for the digital asset era. Recent stock price volatility is likely due to our SpaceX holdings. We have launched the MAPS brand in Hong Kong, are in the final stages of acquiring an online brokerage in the US, and are securing licenses in Singapore. We have also incorporated subsidiaries in Japan and Australia and are reviewing potential acquisitions. Ultimately, we plan to integrate our MTS platforms into a unified global investment platform encompassing traditional and digital assets.

Q: Given the potential for short-term swings in valuation gains or losses from SpaceX, what plans do you have to mitigate this exposure, and what is the size of your valuation gain as of the end of the second quarter? A: (Unidentified Company Representative) We have already generated more than four times our original investment cost in SpaceX. While quarterly performance may be volatile, we expect significant annual contributions given SpaceX's growth potential. To mitigate volatility, we have hedged the KRW300 billion in shares received during the IPO. The remainder of our investment is held through funds and is under lockup, making it hard to hedge entirely. The KRW300 billion Cornerstone portion is classified as FVOCI, so it does not impact our P&L. As lockups expire, we will examine hedging methods to minimize P&L impact. As of the end of Q2, our total consolidated SpaceX valuation exposure, including all overseas subsidiaries, is approximately KRW5 trillion.

Q: What were the key drivers behind the record-high earnings in Q2 2026, and what is the outlook for the second half? A: (CFO Kang-hyuk Lee) Q2 consolidated pretax income was KRW2,528.7 billion, up 86% Q-o-Q, and net income was KRW1,905.2 billion, up 90% Q-o-Q. This includes approximately KRW1,624.2 billion in valuation gains from SpaceX. Excluding these gains, pretax income was KRW904.4 billion, still representing the highest earnings in our corporate history. The record results were driven by balanced profit growth across our core domestic businesses (brokerage, WM, and trading) and record pretax income of KRW609.1 billion from overseas subsidiaries. Our annualized H1 ROE reached 39.5%.

Q: Can you elaborate on the growth of your wealth management and pension business and its contribution to your stable earnings base? A: (CEO Sun Ho Heo) Our domestic and overseas client assets grew significantly to KRW784 trillion as of the end of H1 2026, a 30% increase from the end of 2025. Pension assets surpassed KRW80 trillion in H1, an increase of KRW23 trillion from the end of last year. We added 605,000 active clients in H1, already exceeding the 540,000 increase for all of last year. The revenue model is shifting from brokerage-centric to asset-allocation-centered, leveraging AI and client data. We see significant growth potential in the Korean retirement pension market, which has surpassed KRW554 trillion, and we believe the 30% cap on risk-free assets in pension portfolios should be improved.

Q: What is the status of your global investment platform strategy, and how are you preparing for the digital finance era? A: (CEO Sun Ho Heo) In June, we launched MAPS, our global investment platform in Hong Kong, allowing clients to trade both traditional and digital assets on a single platform. We are planning phased expansion into the US, Singapore, Japan, and Australia. We also built our own inbound distribution platform for global investors to invest directly in Korean equities and ETFs. In preparation for the institutionalization of the STO framework in 2027, we are building the necessary infrastructure. We are also expanding our digital finance ecosystem through synergies with Digital X (formerly Korbit), including RWA tokenization and security tokens.

Q: What were the key drivers of the strong performance in the brokerage and trading segments? A: (CFO Kang-hyuk Lee) Brokerage fee income rose 36% Q-o-Q to KRW625.6 billion, an all-time high, driven by a 31% increase in domestic equity fees and a 52% surge in overseas equity fees. The Q2 average daily trading value in the domestic stock market rose 35% Q-o-Q to KRW90.0 trillion, an all-time high. Trading and other financial income surged 107% Q-o-Q to KRW836.9 billion, with profitability improving across all trading desks. We capitalized on volatility in the ETF market and leveraged our global network for differentiated revenue streams through Chinese corporate IPOs and cross-border arbitrage.

Q: Can you provide details on the performance of your overseas subsidiaries and their contribution to overall results? A: (CFO Kang-hyuk Lee) Overseas subsidiaries posted a record pretax income of KRW609.1 billion in Q2, up 150% Q-o-Q, contributing approximately 24% of total consolidated pretax income. Overseas net profit ROE reached 24.8%. Excluding SpaceX valuation gains of KRW500.2 billion, normalized earnings grew over 25% Q-o-Q. By region, pretax profit broke down as follows: US 37%, Hong Kong 35%, London 18%, India 5%, and Vietnam/others 5%. Developed markets, driven by flow trading and PI investments, accounted for 92% of the profit.

Q: What is your shareholder return policy, and what actions have you taken recently? A: (CEO Sun Ho Heo) In June, we executed KRW300 billion in share buybacks, including KRW200 billion in common shares, KRW10 billion in first preferred shares, and KRW90 billion in second preferred shares. In July, we fully retired the treasury shares, representing the largest share cancellation in our history with an acquisition value of more than KRW500 billion. We will continue to allocate capital efficiently and maintain close communication with the market regarding our three-year shareholder return policy, which will take effect next year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .