[Click eStock] "HectoFinancial, Record-Breaking Q3 Earnings Expected"

[Asia Economy Reporter Jang Hyowon] DS Investment & Securities analyzed on the 10th that Hecto Financial is expected to achieve record-breaking performance in the third quarter due to the reversion to simple cash payments.

Kim Suhyun, a researcher at DS Investment & Securities, stated in a report on the same day, "Considering the seasonality where payment amounts usually increase in the second half of the year, it is expected to show record-breaking performance in the third quarter as well," adding, "It is forecasted to record 35.3 billion KRW in sales, surpassing the 30.5 billion KRW in the second quarter." This is explained as the highest quarterly sales ever.

Researcher Kim said, "While the profitability in the first half of this year was somewhat impaired due to promotional expenses and hiring related to the launch of 010 Pay last year," he also stated, "With the launch of new services within 010 Pay and cost efficiency measures, the profit margin is expected to normalize within the year."

It is analyzed that both external growth and profitability were achieved amid movements by client companies that had switched to open banking to revert back to simple cash payments based on firm banking. He said, "Starting with Kakao last year, the reversion processes of Coupang in May and Naver in August this year are expected to improve profit margins," adding, "The PG business division is also expected to contribute to profit margin improvement by adding payment methods."

In particular, additional external growth through new businesses is anticipated. Around the time of its name change in June, Hecto Financial acquired CodeF, a data relay solution company. This acquisition marked its entry into the data business.

Researcher Kim said, "Synergy is expected between the financial clients secured by the company for over 20 years and CodeF's technological capabilities. The company plans to diversify its business into kiosks by installing Hecto Financial's PG on Samsung Electronics' terminals," adding, "This business is expected to grow alongside the upstream market, which is anticipated to become a 60 trillion KRW global market by 2025."

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