[Click eStock] "HectoFinancial, Focus on Overseas Remittance Solutions and STO Business"

On the 8th, DS Investment & Securities analyzed in a report that Hecto Financial should be noted for its overseas payment remittance solutions targeting overseas clients such as cross-border direct purchase platforms, as well as the adoption of virtual account forms for STO payment methods. No investment opinion or target price was provided.

Nam Min-wook, a researcher at DS Investment & Securities, stated, "'Difference settlement' solutions target the pain points of overseas clients operating businesses domestically," adding, "The expected benefits include reducing currency exchange and remittance fees for domestic execution costs and unifying the varying exchange rates across each PG company." He further added, "Ultimately, since the benefits for overseas merchants are significant, a gradual influx of overseas clients is expected."

He said, "In the case of Yeolmae Company, unlike other STO issuers, it adopted the payment method through K Bank's 010 virtual account," and added, "Currently, due to AML issues, a corrected report has been submitted with a virtual account method that includes real-name verification functionality."

He continued, "If Yeolmae Company's securities registration is ultimately approved, the hegemony of account management institutions, which is currently centered on securities firms, is highly likely to shift to 'virtual accounts and prepaid electronic payment methods,'" and evaluated, "In the future, the adoption possibility of payment methods by OTC trading platforms based on non-securities firms and the influx of additional STO issuers can be anticipated."

DS Investment & Securities forecasted that Hecto Financial's sales and operating profit next year will increase by 13.0% and 6.8% year-on-year to 176.7 billion KRW and 14.1 billion KRW, respectively. The researcher explained, "The immediate growth driver is the offline-centered PG service sales," and added, "If the difference settlement solution targeting overseas clients is established and the virtual account form is adopted as the STO payment method, a high level of virtual account sales growth is expected."

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