"Curve Investment" SpaceX IPO, this Korean brokerage stock soars 200% this year!

South Korean brokerage firms’ future asset securities company stock has nearly doubled in value this year, becoming a focal point in the global market. This remarkable surge is mainly driven by investor bets on Musk’s SpaceX upcoming initial public offering (IPO), highlighting the intense global capital enthusiasm for this space exploration giant’s listing.

According to Bloomberg, as the best-performing stock in the MSCI Global Equity Index so far this year, Future Asset’s strong performance indicates that investors are competing through various channels to gain exposure before the merger and IPO of SpaceX and xAI. Market estimates suggest that this highly anticipated merged entity could be valued at up to $1.25 trillion.

Analyst reports show that Future Asset has invested over $400 million cumulatively in SpaceX and its sister company xAI. This unique holding structure makes it a scarce target in the eyes of investors, benefiting not only from the strength of the Korean domestic stock market but also viewed as a “shadow stock” participating in Musk’s business empire.

This “curve investment” strategy offers the market a dual-value capture opportunity. Against the backdrop of the Korean stock market’s overall rise driven by AI demand and governance reforms, SpaceX’s equity provides an additional strong catalyst for Future Asset, helping it stand out in fierce market competition.

Dual Value Drivers and Peer Performance

Eugene Asset Management Chief Investment Officer Ha SeokKeun pointed out that Future Asset’s fundamentals are improving due to the strong Korean stock market, while its holdings in SpaceX provide an additional catalyst, enabling investors to “capture two sources of value simultaneously.”

Under the government’s efforts to boost stock valuations and attract retail investors, brokerage stocks have become the best-performing sector in the Kospi index this year. Besides Future Asset, SK Securities has also risen about 200%, and Hanwha Investment & Securities has gained over 100%. The Kospi index itself has continued to rise due to optimistic AI chip demand and President Yoon’s governance reforms, making it one of the best-performing stock indices globally.

Diversified AI Holdings and Performance Growth

NH Investment & Securities analyst Yoon Yoodong stated that Future Asset benefits from its $7.5 billion investment portfolio with significant exposure to “space and AI sectors.” In addition to SpaceX, its investments include US AI startup Perplexity AI Inc. and Chinese drone manufacturer DJI Technology.

Meanwhile, the company’s own performance has shown significant growth. In last week’s earnings call, Future Asset disclosed that its brokerage revenue for 2025 hit a new high, up 43% year-over-year, demonstrating strong resilience in core business.

Valuation Premium and Potential Risks

Despite the soaring gains, concerns about overvaluation are emerging. Currently, the stock’s forward P/E ratio is 21 times, three times its five-year average. Some market observers believe that the stock price has diverged from fundamentals, overestimating future growth expectations.

KB Securities analyst Kang Seunggun warned that the stock’s valuation is already high, and the actual returns from the high-valuation portfolio are still uncertain. In a report dated February 9, he wrote, “Most of the profit growth comes from unrealized gains in the merger fund, which have limited direct impact on independent capital.” He pointed out that the process of converting valuation gains into shareholder returns involves significant uncertainty, and investors should be cautious of potential pullbacks.

Risk Warning and Disclaimer

Market risks exist; investment should be cautious. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions herein are suitable for their particular circumstances. Invest at your own risk.