[Click eStock] "Galaxia Moneytree, Core Business Turnaround... NFT Business as an Expectation Factor"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed on the 23rd that a turnaround in the core business of Galaxia Moneytree is expected. No investment opinion or target price was provided.

Galaxia Moneytree is a fintech company engaged in PG, O2O (mobile gift certificates and prepaid payments), and cryptocurrency payment businesses. It has grown based on the mobile PG business and operates O2O mobile gift certificate and prepaid payment services. Currently, through Moneytree, a digital currency exchange and payment platform, it has expanded into the point exchange and cryptocurrency payment markets.

Last year, sales and operating profit were 81.2 billion KRW and 7.7 billion KRW, respectively, down 5.0% and 10.6% from the previous year. Jaeyoon Kim, a researcher at KTB Investment & Securities, said, "This was due to the cleanup of non-performing merchants in the third quarter and a decrease in transaction volume from leisure industry merchants," adding, "Performance is expected to improve with a payment amount turnaround in 2021."

The new business, the Moneytree platform, is an area with expected growth. The Moneytree platform is an exchange-based online and offline payment platform that allows mutual exchange of cash, points, gift certificates, and cryptocurrencies. He said, "Currently, it has secured 2 million members," and "leveraging the advantage of multi-currency exchange and payment, the monthly active users (MAU) as of the first quarter more than doubled compared to the same period last year."

He added, "Galaxia Moneytree directly issues its own cryptocurrency called Jopsal Coin and uses it as a reward on the Moneytree platform," and evaluated, "Jopsal Coin can be exchanged for Moneytree Cash on the Moneytree platform and used like real currency. Although many cryptocurrencies have been issued, only a handful have evolved to the stage of real-life usage."

He said, "The Bitcoin payment function, launched domestically for the first time on the 20th, and the Jopsal Coin, Bitcoin, and Ethereum swap service scheduled for release in June will highlight the value of Galaxia Moneytree's cryptocurrency," adding, "The additional issuance of Jopsal Coin planned for the 1st of next month is also positive and will be used for new business."

Furthermore, expansion into the NFT business is also an expected factor. He explained, "Galaxia Moneytree's expansion into the NFT business is anticipated with the newly issued Jopsal Coin," and "Moneytree is a platform that allows easy exchange of cryptocurrencies into other payment methods and already has 2 million members. Entering the NFT market is expected to create significant synergy effects."

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