Bitcoin Boom's Biggest Beneficiary 'Kakao'... "It Couldn't Be Better Than This"

"Prospects for Expansion of Equity Method Gains Related to Dunamu"

[Asia Economy Reporter Kiho Sung] Kakao has been evaluated as the biggest beneficiary of the Bitcoin craze. This is because it holds shares in Dunamu, which operates Upbit, the largest cryptocurrency exchange in Korea.

On the 17th, Changkwon Kim, a researcher at Mirae Asset Daewoo, stated, "The biggest beneficiary of the Bitcoin craze is Kakao," and "I am raising the target stock price from 570,000 KRW to 590,000 KRW."

Researcher Kim explained, "Kakao directly and indirectly holds about 23% of Dunamu, which operates Upbit," and "As of the fourth quarter of 2017, Dunamu's equity-method profit was about 29 billion KRW."

Upbit is currently recording traffic and transaction volumes exceeding those of the fourth quarter of 2017. If the cryptocurrency craze maintains its current level, it is expected to contribute more than 100 billion KRW in equity-method profit this year alone. A revaluation of share value is anticipated following the Nasdaq listing of the global cryptocurrency exchange Coinbase.

Researcher Kim forecasted, "In the first quarter, steep performance indicators for KakaoBank, KakaoPay, and Piccoma will be confirmed." The performance momentum of growth divisions such as Bizboard and Commerce continues into the first quarter. The addition of a shopping tab is expected to accelerate transaction volume growth.

The number of net users of the KakaoBank application and KakaoPay app, which are leading performance indicators, is rapidly increasing in January and February as well. The transaction volume of the Japanese webtoon service Piccoma is expected to increase by 304% year-on-year in the first quarter.

Researcher Kim predicted, "First-quarter sales and operating profit will increase by 46.3% and 76.9%, respectively, compared to the same period last year."

Kakao will undergo a 1:5 stock split, and trading will be suspended for three days from the 12th to the 14th of next month. Trading will resume from the 15th of next month. KakaoPay is expected to go public in the first half of this year, and KakaoBank in the second half. Kakao Entertainment and Kakao Japan are preparing for listings next year.

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