[Click eStock] "Norang Pungseon Launches Complete OTA... Stock Price Expected to Rise"

[Asia Economy Reporter Yoo Hyun-seok] SangSangin Securities analyzed on the 19th that Norangpungseon will show remarkable growth potential at the time when overseas travel resumes in the future due to the launch of Korea's first complete OTA (Online Travel Agency). They presented a 'Buy' investment opinion and a target stock price of 43,000 KRW.

Norangpungseon operates primarily in the travel industry and the sales business of airline tickets and ferry tickets. It was established in August 2001. It was listed on the KOSDAQ market in January 2019.

Norangpungseon recently launched an OTA platform. It is an integrated platform based on a free travel platform where airline tickets, hotels, tours, and activity services can be booked and paid for all at once.

Researcher Lee Jong-won of SangSangin Securities said, "By using the free travel platform, travelers can plan their own travel programs by purchasing travel components separately after price comparison," and added, "After COVID-19, new package products combined with free travel are expected to increase further."

In particular, the researcher emphasized that results are being seen even in the short term after the OTA launch. He said, "As of June 20, the number of new members registered through the new platform increased by more than 50% compared to the same period last month, and the daily visitors also surged by about 800%,"

adding, "As a result within a week after the official platform opening, international airline ticket purchases increased 2.5 times, and domestic airline ticket purchases increased more than 4 times."

He explained, "The increase in traffic is judged to be due to the combination of latent demand for domestic and international travel suppressed after the COVID-19 surge and consumer interest due to the large-scale promotion ongoing to commemorate the platform opening," and added, "Since the platform is achieving meaningful results in a short period, its growth potential at the time of overseas travel resumption is expected to be even more remarkable."

He particularly predicted that the stock price will also show an upward trend in the future. He said, "The latent demand for overseas travel that has been suppressed is expected to be accompanied by structural changes in the travel industry, linked with the increase in individual free travel, the rising demand for customized products, and intensified industry competition," and added, "Considering the long-term travel waiting demand due to revenge consumption until 2024 and the inherent competitiveness based on the free travel platform, the upward trend of the stock price is expected to continue."

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