[Click eStock] "ICKE, Stable Cash Cow with Growth Momentum"

[Asia Economy Reporter Jang Hyowon] On the 23rd, YuHwa Securities presented a buy rating and a target price of 7,000 KRW for ICK, stating that it has secured a stable cash cow as well as growth drivers.

ICK, established in 1998, is a specialized manufacturer of credit cards and smart cards. Stable sales are generated from the production of plastic cards and metal cards. In particular, metal cards are driving performance. In the US and Europe, differentiation, premiumization, and enhanced security of cards have become important, leading to an expansion in the adoption rate of metal cards.

Researcher Yoo Seungjun explained, "Considering that metal card contracts with clients usually last 3 to 5 years, continuous sales are expected to occur," adding, "Based on stable card manufacturing sales, external growth is expected through Selfie, a new growth engine."

Selfie is a tap-to-pay solution that enables payments without a card terminal. Since payments can be made using only a mobile phone without a terminal, VAN operators benefit from cost reduction, and merchants enjoy lower card fees. Starting with small business owners and other operators without terminals, its adoption is expected to gradually expand. The company’s strategy is to preoccupy the tap-to-pay market by being the only domestic company to obtain global certification and certification from the Credit Finance Association.

Researcher Yoo said, "Sales from Selfie will begin in the second half of this year and are expected to expand significantly from next year," adding, "The company plans to enter the high-growth secondary battery industry through M&A, securing growth drivers as well."

ICK’s consolidated Q2 results recorded sales of 11.1 billion KRW and operating profit of 2.7 billion KRW, turning profitable and increasing by 70.7% compared to the same period last year. Strong performance was achieved thanks to sales growth of metal cards. In the US and Europe, the current metal card market share of about 5% is expected to increase to around 50% by 2025, indicating stable performance growth.

Researcher Yoo stated, "We initiate coverage with a target price of 7,000 KRW by applying a price-earnings ratio (PER) of 15 times to this year’s expected earnings per share (EPS) of 466 KRW," and added, "If Selfie sales expand and the company preoccupies the tap-to-pay market, a premium rather than a discount can be applied."

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