“Curve investment” SpaceX IPO, this South Korean brokerage stock has surged 200% this year!
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The stock price of Korea’s brokerage firm Mirae Asset Securities has nearly doubled this year, becoming a global market focal point. This spectacular surge is mainly driven by investors betting on the imminent IPO of Musk’s SpaceX, highlighting the worldwide fervor for the listing of this space exploration giant.
According to Bloomberg, as the best-performing stock in the MSCI Global Equity Index so far this year, Mirae Asset’s strong rally indicates investors are scrambling through various channels to gain exposure before the SpaceX and xAI merger IPO. Market estimates put the value of this eagerly awaited merged entity as high as $1.25 trillion.
Analyst reports show that Mirae Asset has invested more than $400 million in SpaceX and its sister company xAI. This unique portfolio structure makes it a rare target in the eyes of investors, not only benefiting from the strength of Korea's domestic stock market but also being viewed as a "shadow stock" for participating in Musk’s business empire.
This “indirect investment” strategy provides the market with double value capture opportunities. Against the backdrop of rising Korean stocks due to AI demand and governance reforms, SpaceX’s equity gives Mirae Asset an additional strong catalyst, enabling it to stand out in fierce market competition.
Dual Value Drivers and Peer Performance
Ha SeokKeun, Chief Investment Officer at Eugene Asset Management, points out that Mirae Asset's fundamentals are improving thanks to the strong Korean stock market, and its holdings in SpaceX provide an extra catalyst, enabling investors to “capture two sources of value simultaneously.”
Brokerage stocks have become the best-performing sector in this year’s Kospi index, driven by government efforts to boost stock valuations and attract retail investors. Aside from Mirae Asset, SK Securities is also up about 200% this year, while Hanwha Investment & Securities has risen over 100%. The Kospi index itself continues to climb, buoyed by optimism about AI chip demand and governance reforms promoted by President Yoon Suk Yeol, making it the best performing stock index globally.
Diversified AI Holdings and Performance Growth
Yoon Yoodong, analyst at NH Investment & Securities, said, Mirae Asset benefits from its $7.5 billion portfolio’s substantial exposure to the “space and AI sectors.” Besides SpaceX, its investment targets also include U.S. AI startup Perplexity AI Inc. and Chinese drone maker DJI Technology.
Meanwhile, the company’s own performance is showing significant growth. In last week’s earnings call, Mirae Asset disclosed that its 2025 brokerage revenue hit a record high, rising 43% from the previous year and showing strong resilience in its core business.
Valuation Premium and Potential Risks
Despite the surge, concerns about overvaluation are emerging in the market. Currently, its forward P/E ratio is 21 times, three times its five-year average. Some market observers believe the stock price has detached from fundamentals and has priced in future growth expectations.
Kang Seunggun, analyst at KB Securities, warned that the stock’s valuation is already high, and the actual returns from the high-valuation portfolio remain unclear. In a February 9 report, he wrote, “Most profit growth comes from unrealized gains in combined funds, which has limited direct impact on independent capital.” He pointed out the process of converting valuation gains into shareholder returns has significant uncertainty and investors should beware of potential downside risks.
Risk Warning and DisclaimerThe market is risky, and investments should be made with caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article suit their particular circumstances. Any investment based on this is at your own risk. ```