Kakao, When Will It Enter... 'Target Stock Price 170,000~180,000 Won'

[Asia Economy Reporter Park So-yeon] Hanwha Investment & Securities has lowered the target price for Kakao to 170,000 KRW while maintaining a 'Buy' investment rating.

According to the financial investment industry on the 19th, Hanwha Investment & Securities stated in a recent report, "We are lowering the target price for Kakao to 170,000 KRW," adding, "We are revising down the values of the mobility and pay business divisions to 2.5 trillion KRW and 6.8 trillion KRW, respectively."

Kim So-hye, a researcher at Hanwha Investment & Securities, mentioned, "Kakao's stock price has fallen 28% from its peak, reflecting concerns related to various regulations."

Researcher Kim added, "However, considering that the company has increased its corporate value by successfully monetizing new business areas, short-term momentum is expected to be sluggish."

The potential slowdown in the expansion of KakaoPay and Kakao Mobility, which are preparing for their initial public offerings (IPOs), is also a negative factor for stock price growth.

Third-quarter sales are expected to reach 1.51 trillion KRW, a 36.9% increase compared to the same period last year. TalkBiz sales are projected to grow by about 41%. This reflects a significant positive cycle effect in sales through BizBoard, TalkChannel, and AlimTalk.

In particular, Hanwha Investment & Securities forecasts that TalkChannel sales, which collect fees per message, will grow by more than 70%.

Researcher Kim So-hye said, "TalkChannel is establishing itself as a marketing platform aiming for sustainable relational commerce with consumers, and the number of advertisers is rapidly increasing."

Other platform sales are expected to increase by 69%, driven by high growth in T Blue taxi sales and expanded pay transaction volume. Hanwha Investment & Securities projects Kakao's operating profit for the third quarter to be 217.5 billion KRW. Due to aggressive marketing related to gaming, mobility, and pay, the consensus is expected to be missed by 10%.

Samsung Securities also recently lowered Kakao's target price to 180,000 KRW and issued a 'Buy' investment rating in their report.

Samsung Securities analyzed that Kakao will slow down the growth pace of new businesses. They expect the monetization schedule of new businesses to be somewhat delayed due to the suspension of some insurance brokerage services by the fintech subsidiary and adjustments in the mobility revenue model. Additionally, the existing business strategy of rapidly expanding business areas centered on core services is also expected to inevitably slow down.

Samsung Securities researcher Oh Dong-hwan stated, "The market's interest lies in whether the regulatory voices from the media and political circles, which were spreading comprehensively, will subside due to Kakao's proactive response," adding, "By abolishing the controversial smart call and delivery services in mobility and deciding to reduce the chauffeur service fees, some sources of conflict have been partially resolved." However, he said, "Issues such as commission fees for affiliated taxis, dispatch discrimination against non-affiliated taxis, and K Cube Holdings' inadequate disclosure still remain, so it is difficult to say that regulatory risks have been completely resolved."

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