[Click eStock] "KG Inicis, a Company Unaffected by COVID-19"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment on the 2nd presented a buy rating and a target price of 30,800 KRW for KG Inicis, stating that it is free from the recession impact spreading across the industry due to the COVID-19 pandemic.

Researcher Lee Jung-ki of Hana Financial Investment cited performance improvement, undervaluation appeal, and KG Mobilians growth as investment points for KG Inicis.

The biggest attraction among these is the performance trend. KG Inicis is expected to achieve sales growth of more than 20% compared to usual through securing new merchants and expanding global merchant partnerships this year.

Researcher Lee Jung-ki explained, "KG Inicis's sales this year are expected to rise 15.8% from the previous year to 1.1 trillion KRW, and operating profit is projected to increase 25.1% to 107.7 billion KRW."

In particular, he added, "Despite the impact of COVID-19, first-quarter sales increased by 5% compared to the same period last year, and due to increased demand from the main customer group, the travel industry, full-scale sales growth is expected from the second quarter."

Additionally, despite the completion of the M&A issue with Dongbu Steel, which had hindered stock price growth, the stock is trading at a price-to-earnings ratio (PER) of 7.1 times. Growth in profits is also expected from the increase in the mobile small payment limit of subsidiary KG Mobilians this year and the merger of subsidiaries.

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