[Click eStock] Kakao, Decrease in Valuation of Listed Subsidiary... Target Price Lowered by 19%

[Asia Economy Reporter Yoonju Hwang] Hana Financial Investment maintained a 'Buy' rating on Kakao on the 14th, despite a 19% cut in the target price to 135,000 KRW due to a decrease in the corporate value of its listed subsidiaries.

Yoon Yeji, a researcher at Hana Financial Investment, stated, "This reflects the decline in the corporate value of listed subsidiaries and the downward revision of valuations for global peer companies."

Researcher Yoon evaluated, "This year, TalkBiz sales are expected to achieve a growth rate (43%) comparable to last year, expressing confidence, and uncertainties related to the core business have been resolved."

Yoon explained, "Enterprise's Klaus business sales and blockchain business sales began contributing to the fourth-quarter results last year," adding, "The growth in other platform sales is judged to be a performance that can erase doubts about future business expansion, which arose due to various regulatory issues last year."

Regarding the blockchain division, Yoon forecasted, "With the growth of the Klaytn chain, sales from Klaytn Chain Service Development B2B solutions, mining rewards, and brokerage fees from the NFT exchange Klip Drops are all expected to grow together."

She added, "While global advertising companies are expected to perform poorly, Kakao Advertising is anticipated to show unexpected strong performance, and since the momentum for new business growth is expected to continue, the investment attractiveness is judged to be high."

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