Mirae Asset Securities Co. Ltd.

MAS will be better-positioned to manage risks related to the financing of real estate project than the smaller stand-alone securities firms, in our view. This is because we believe the company has adequate risk management capabilities and diverse funding sources. We expect it to withstand some financial burden arising from its overseas investments. Meanwhile, MAS could report subdued profitability in the coming year. Fee income from corporate financing will likely stay sluggish, while potential impairment losses on overseas alternative investments could hurt profitability. The stable rating outlook on MAS reflects our view that the company will maintain adequate capitalization over the next 18-24 months. It will likely prioritize strengthening risk management over rapid business growth. We believe MAS can absorb

...Mirae Asset Securities Co. Ltd. (MAS) will focus on risk management of overseas alternative investments and guarantees for real estate project financing. The company has tightened internal rules and risk review processes for such exposure. Meanwhile, the regulators are also closely monitoring the asset quality of securities firms. MAS will be better-positioned to manage risks related to the financing of real estate project than the smaller stand-alone securities firms, in our view. This is because we believe the company has adequate risk management capabilities and diverse funding sources. We expect it to withstand some financial burden arising from its overseas investments. MAS will likely maintain adequate capitalization over the next two years. The company has buffers to absorb pressure from a potential increase in market risks. It is unlikely to expand into corporate financing or complex trading aggressively....

Full Report