[Click eStock] Kakao Continues Growth This Year Following Last Year... Target Price Upward Revised

[Asia Economy Reporter Koh Hyung-kwang] Shinhan Financial Investment raised the target price for Kakao by 5.4% to 195,000 KRW on the 20th, stating that Kakao's fourth-quarter results last year were favorable and growth will continue this year.

Researcher Lee Moon-jong of Shinhan Financial Investment explained, "Kakao's sales and operating profit last year are expected to reach 861.4 billion KRW and 71.3 billion KRW, respectively, up 10% and 20% compared to the previous year," adding, "This is a solid performance in line with the operating profit consensus of 70.1 billion KRW."

He added, "TalkBiz sales reached 194 billion KRW, and daily sales of BizBoard also rose to 400 to 500 million KRW as of December last year, with the shopping peak season effects such as Christmas contributing to the growth in gift sales."

The researcher forecasted, "Although BizBoard's daily sales increased, the inventory usage rate is estimated to be around 30%. With the influx of small and medium advertisers and the refinement of targeting, daily sales are expected to rise to over 700 million KRW by the fourth quarter of this year."

He also predicted, "While BizBoard's high growth supports the performance, new businesses are progressing smoothly. KakaoBank's user base has already surpassed 11 million, and Page is beginning to show operating leverage effects, expected to record double-digit operating profit margins."

Regarding the target price increase, the researcher evaluated, "The existing value was adjusted upward due to strong performance in the mobility and pay sectors. With BizBoard leading the results and subsidiaries' businesses progressing well, there remains room for corporate value growth despite the recent stock price rise."

This content was produced with the assistance of AI translation services.