[Click eStock] "Cocoon, an Irreplaceable Data Platform... Actively Buy on Corrections"

[Asia Economy Reporter Ji Yeon-jin] Hi Investment & Securities on the 25th gave a buy rating and a target price of 110,000 KRW for the data company Kukon, stating that its business model is connected with all financial sectors and fintech companies, creating a business environment that is difficult for latecomers to enter.

Kim Hyun-ki, a researcher at Hi Investment & Securities, said, "Kukon operates a business that provides standardized data through the stages of ‘data collection → data connection → data organization,’ and since its establishment in 2006, it has accumulated over 15 years of know-how and infrastructure related to the data business," adding, "We judge that it will continue to play a platform role that is not easily replaceable, and expect the company's business moat to persist."

Kukon's sales growth rate is expected to reach 24.9% this year, and based on the MyData business fully implemented since January 2022, mid- to long-term high growth is anticipated. As growth in the data sector, which has a relatively high operating profit margin, is expected, margins are also projected to increase. Additionally, the operating profit margin is expected to rise from around 13% in 2018 to 26% this year, and surge to 30% next year.

The company's stock price rose following the announcement of a bonus issue this month. The bonus issue was conducted to meet the capital requirements for data-specialized institutions under the Credit Information Act, and new shares will be allocated at a ratio of 0.25 shares per 1 share. Since the listing date of the new shares is scheduled for the 20th of next month, stock price volatility may increase around that date. Researcher Kim emphasized, "Considering Kukon's business competitiveness and industry growth, we strongly recommend actively buying during price corrections."

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