[Click eStock] "Nasmedia, Potential Vanguard for KT Ecosystem Construction↑... Target Price Raised"

Shinhan Financial Investment Presents Investment Opinion 'Buy' and Target Price of 45,000 Won... Closing Price on 28th at 35,750 Won

[Asia Economy Reporter Kum Boryeong] Shinhan Financial Investment has issued a 'Buy' rating and set a target price of 45,000 KRW for Nasmedia, as analysis suggests it could become the spearhead in building the KT ecosystem. The target price has been raised from the previous 37,000 KRW. The closing price on the 28th was 35,750 KRW.

Shinhan Financial Investment forecasts Nasmedia's consolidated Q3 revenue at 29.1 billion KRW and operating profit at 6.1 billion KRW, representing increases of 8.4% and 20.5% year-on-year, respectively. Researcher Hong Sejong of Shinhan Financial Investment stated, "This is not significantly different from previous estimates. Thanks to the base effect, a steady profit growth is expected this quarter," adding, "Although there is uncertainty due to the spread of COVID-19 in August, the domestic advertising market passed its low point around April to May."

Separate revenue is expected to increase by 18.3% to 21.3 billion KRW. Researcher Hong analyzed, "The main online (DA) revenue is expected to grow by 8.7% alongside the expansion of the video market," and "Despite unprecedented adverse conditions, company-wide efforts to improve cost efficiency continue, leading to an expected operating profit margin increase of 2.1 percentage points to 20.8%."

Researcher Hong believes Nasmedia is highly likely to become the spearhead in building the KT ecosystem, as it has the best conditions to monetize the accumulated human data of the KT Group over several years. He said, "The business structure utilizing KT big data will increase profits in the short term," and "In the mid to long term, it guarantees the direction of a complex ecosystem through a single membership. This is why a new business launch is expected within the year."

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