[Click eStock] "Kakao's Subsidiary IPOs Are a Positive Momentum"

Subsidiary IPOs Expected to Drive Positive Momentum
Daishin Securities Highlights Potential for Higher Valuations
'Talk Biz' and 'Gift' Service Continue to Boost Revenue

[Asia Economy, reporter Bo-ryeong Keum] The planned IPOs of Kakao's subsidiaries have been analyzed as a positive momentum for the company.

On December 11, Daishin Securities maintained a 'Buy' rating on Kakao and set a target price of 500,000 won. The closing price on December 10 was 370,500 won.

Starting next year, Kakao is planning to list subsidiaries such as KakaoBank, KakaoPay, and KakaoPage. As these subsidiaries, which are key to Kakao's new business initiatives, prepare for IPOs, some investors have expressed concerns about a potential decline in Kakao's stock price. This is because the issuance of new shares would dilute Kakao's stake, and it would be inevitable to apply a discount rate to the listed subsidiaries.

Regarding this, Lee Mina, a researcher at Daishin Securities, stated, "We believe that the positive effects of subsidiary IPOs will outweigh the negatives," and explained, "More concrete information on each subsidiary's business plans, strategies, and long-term outlooks will be disclosed, and as a result, the valuations of these companies may exceed the current value of the subsidiaries reflected in Kakao's market capitalization."

The parent company still retains 'Talk Biz.' All revenue generated based on KakaoTalk, the company's core asset, is included within Talk Biz. Among these, the 'Gift' service is recording transaction volumes that significantly exceed market growth rates, thanks to a diverse range of curated products.

Researcher Lee added, "The 'Gift' service is not highly sensitive to price for buyers, so with the increase in users, the average revenue per user (ARPU) is expected to continue rising."

Talk Board ads are also expanding their placements to Shop Tab, KakaoPage, Daum Mobile, and webtoons. Gradual improvements in efficiency are expected to lead to higher unit prices.

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