[Featured Stock] KakaoPay Hits New Low Again Amid Worsening Investor Sentiment... Down 5%

[Asia Economy Reporter Minji Lee] Kakao Pay fell to a 52-week low.

At 10:14 a.m. on the 6th, Kakao Pay was trading at 100,500 KRW, down 5.63% from the previous trading day. On that day, Kakao Pay dropped to 105,000 KRW during the session, falling below the previous low of 106,000 KRW.

Above all, the news of the release of approximately 76.2 million shares under lock-up appears to be significantly suppressing the stock price. Kakao voluntarily extended the lock-up period to one year, so only the shares held by Alipay (13,894,450 shares) are expected to enter the market, but some investors are presumed to feel burdened by the stock price and have started to sell off.

The lowered expectations in the securities industry due to weak first-quarter earnings also had an impact. On the 4th, SK Securities lowered the target price by 20% to 115,000 KRW, stating that Kakao Pay recorded an operating loss for the fourth consecutive quarter and that profitability improvement is delayed. The investment opinion was maintained as neutral.

Researcher Kwansoon Choi of SK Securities explained, “Despite the reduction in operating losses in the first quarter, Kakao Pay has continued to record operating losses for four consecutive quarters, delaying profitability improvement,” adding, “Due to the decrease in wholesale sales of Kakao Pay Securities, financial service sales fell by 32.5%, resulting in overall operating revenue being weaker than expected.”

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