[Click eStock] "Innocean, Starting Point Beyond COVID-19 Impact in Q4 Last Year"

[Asia Economy Reporter Park Jihwan] NH Investment & Securities maintained a 'Buy' rating and a target price of 74,000 KRW for Innocean on the 9th, stating that the fourth quarter of last year marked the beginning of recovery as it escaped the impact of COVID-19.

Researcher Lee Hwajeong of NH Investment & Securities said, "This year, high marketing demand from captive advertisers (global expansion of Genesis, brand extension of electric vehicle Ioniq, CI change of Kia Motors) is expected," adding, "Combined with the resumption of marketing by non-captive advertisers, a strong turnaround is anticipated."

They are also considering mergers and acquisitions (M&A) of global digital advertising agencies. Researcher Lee explained, "They are showing a strong will to secure inorganic growth drivers," and "Despite earnings decline due to COVID-19 last year, the dividend payout ratio was unusually raised to 56% from the 40% range the previous year, demonstrating a strong commitment to shareholder returns."

On a consolidated basis, gross profit in the fourth quarter of last year was 168.7 billion KRW, up 10% year-on-year, and operating profit was 41.4 billion KRW, up 4%. Researcher Lee emphasized, "Although the headquarters inevitably faced continued COVID-19 impact and adverse effects, domestic media agency and advertising production performed well due to the launch of Genesis GV70 and the N Line campaign."

Overseas, although the advertising market is still recovering, the acquisition effect of Wellcom was fully reflected, resulting in growth in all regions except China.

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