[Click eStock] "Galaxia Moneytree, High Growth Through Activation of Gasan Assets"

[Asia Economy Reporter Hyunseok Yoo] Hanyang Securities analyzed on the 31st that Galaxia Moneytree is expected to achieve high growth through the activation of virtual assets. No investment opinion or target price was provided.

Galaxia Moneytree recorded sales of 48.3 billion KRW and an operating profit of 2.4 billion KRW in the first half of the year. Kim Yongho, a researcher at Hanyang Securities, said, "In the first half performance, the core businesses of PG and O2O divisions achieved record sales," adding, "In the O2O mobile gift certificate & coupon division, second-quarter sales exceeded last year's annual sales, showing a full recovery compared to the somewhat sluggish sales in 2019 and 2020." He continued, "The decline in operating and net profit was inevitable due to a decrease in small mobile phone payments and promotional costs incurred from increasing the proportion of credit card payments to defend against this, as well as one-time costs from a regular tax audit."

However, Kim predicted that virtual assets will drive Galaxia Moneytree's high growth. He said, "The 100% subsidiary Galaxia Metaverse, established last May, is also reorganizing its business," adding, "The virtual asset business division has been fully transferred to subsidiaries, and currently, the virtual asset toll (XTL) payment and exchange service is temporarily suspended."

He explained, "With the opening of a new platform on November 1, services will resume. XTL has been tradable since its listing on Gopax in October last year, and it is widely used as a payment method for Zero Pay composite payments, remittances and withdrawals, and utility bill payments," adding, "More than 95% of the charged amount is used, generating fees." He further added, "Once the platform opens and services start, subscribers are expected to use charging and payment services more conveniently, which could lead to an increase in subscribers and consequent sales growth."

There is particularly high anticipation for the NFT (Non-Fungible Token) business. He emphasized, "NFTs have begun to attract attention overseas and are showing successful cases domestically as well, with high growth expected in the market," adding, "In the still early-stage domestic NFT market, the company already has a platform and more than 15 partners, securing various IPs."

He explained, "The business operates on a structure where fees are collected by selling and distributing high-demand assets such as digital art and exclusive content of celebrities and sports players as NFTs," adding, "In addition to initial issuance fees, fees can optionally be collected on peer-to-peer transactions, so continuous fee income is expected after the full launch of the service."

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