[Click eStock] "Kakao Continues Growth Through Subscription Economy and More"

Yuanta Securities Issues 'Buy' Investment Rating and 410,000 KRW Target Price... Closing Price on November 30 at 368,000 KRW

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that Kakao continues to grow through subscription economy and other means.

According to Yuanta Securities on the 1st, the year-on-year growth rates for the third quarter were 68% for Talk advertising, 85% for commerce (gift sending), 139% for new businesses (payment + mobility), 61% for webtoons, and 53% for Kakao Bank loan amounts.

Researcher Lee Chang-young of Yuanta Securities explained, "This growth is judged to be driven by providing non-face-to-face (untact) 'convenience' in daily life based on KakaoTalk, while encroaching on existing offline advertising, distribution, payment, taxi, comics, and banking revenues."

Kakao has launched a product subscription service where users can apply for rental and regular delivery. They have already started renting Dimchae kimchi refrigerators and plan to expand the subscription service range to Bodyfriend, Amorepacific, Winix, HanSaeng, and others.

Researcher Lee said, "The rental market itself, which can reduce the hassle of applying and paying each time for busy modern people and lessen the burden of purchase, is rapidly increasing. Moreover, the fact that payment, maintenance, repair, and replacement for rentals can be conveniently managed through KakaoTalk suggests that this could become another growth business for Kakao."

Yuanta Securities gave Kakao a 'Buy' investment rating with a target price of 410,000 KRW. The closing price on the 30th of last month was 368,000 KRW.

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