[Click eStock] "HectoFinancial Records Highest Quarterly Sales"

Shinhan Investment Corp. analyzed on the 14th that Hecto Financial recorded its highest quarterly sales but is experiencing a historical low in valuation due to industry neglect, viewing this as a buying opportunity.

Hecto Financial's sales and operating profit for the second quarter were 38.5 billion KRW and 3 billion KRW, respectively, marking increases of 25.9% and 2.3% compared to the same period last year. This is the highest quarterly sales to date.

Researcher Lee Byunghwa of Shinhan Investment Corp. stated, "This year's expected sales and operating profit are 157.2 billion KRW and 13.5 billion KRW, respectively, representing increases of 21.6% and 4.8% year-over-year. In particular, the PG (Payment Gateway) business, due to its seasonal characteristics of lower sales in the first half and higher in the second half, is expected to achieve quarterly sales in the second half exceeding those of the second quarter."

Hecto Financial is diversifying across both online and offline channels by selling kiosks for Samsung Electronics. The company's payment system is partially embedded in these kiosks and resold. The annual number of units sold is expected to increase by approximately 150% compared to the previous year, contributing to PG growth.

Researcher Lee explained, "Simple cash payments are also expected to expand transaction volume by attracting new customers such as coffee franchises and large travel agencies. However, profitability improvement is expected to require more time due to delays in the full-scale launch of the data business."

He analyzed, "Hecto Financial's expected price-to-earnings ratio for this year is 11.5 times, which is at a historical low level. Given the low valuation burden, this is judged to be a buying opportunity."

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