1. Daol Investment & Securities H1 2025 Performance: What Happened?

Daol Investment & Securities recorded revenue of KRW 503.1 billion, operating profit of KRW 19.5 billion, and net income of KRW 22.3 billion in the first half of 2025, marking a significant improvement year-over-year. Balanced growth across major business segments, including investment banking, asset management, and savings banking, drove this performance. Notably, the company achieved an ‘earnings surprise,’ exceeding market expectations which were estimated at zero.

2. Drivers of Improvement: Why the Positive Results?

  • • Investment Banking: Surge in gains from financial asset (liability) valuation and disposal; recovery in proprietary trading and underwriting.
  • • Asset Management: Increased market investment demand; successful alternative investment strategies.
  • • Savings Banking: Effective asset quality management and digital investments.
  • • Stable capital adequacy ratio (256.42%).

3. Investment Considerations: Proceed with Caution

Despite the positive earnings, investors should consider past performance volatility, a high debt-to-asset ratio (115.06%), potential risks related to real estate project financing (PF), market volatility (interest rates, exchange rates, etc.), and intensifying competition. The uncertainty surrounding the real estate PF sector is a crucial variable that could impact future performance.

4. Investment Strategy: How Should You Invest?

While the positive momentum may continue in the short term, a cautious approach is recommended considering market volatility and risk factors. In the medium to long term, closely monitor the management of real estate PF risks, stabilization and diversification of the business portfolio, and strengthening of core business competitiveness. Continuous attention to the following quarter’s earnings trends, real estate PF risk management and recovery status, response strategies to macroeconomic variables, and performance of new businesses and portfolio diversification is crucial.