[Click eStock] "Naver Starts Hyper-Personalized Commerce... Ads and Fees Drive Performance"

Daishin Securities forecasted on the 19th that with Naver starting hyper-personalized commerce, both advertising and brokerage commission revenues will grow. The investment opinion of "Buy" and the target stock price of 280,000 KRW were maintained.

Naver launched the 'Naver+ Store' application targeting hyper-personalized commerce on the 12th. Accordingly, in addition to expanding advertising slots, a new '+ Store exclusive advertising' product was introduced.

Lee Ji-eun, a researcher at Daishin Securities, explained, "From the first quarter, the effects of expanded advertising space and the launch of new advertising products are expected to be fully reflected, maintaining a growth rate in the low double digits each quarter," adding, "Starting June 2, there will be a change in the brokerage commission rate policy, and the average commission rate for Naver Shopping is estimated to rise from the existing 2% to 2.8%."

She continued, "Due to the increase in brokerage commission rates, commerce brokerage revenue is expected to increase by 24% year-on-year in 2025," and added, "This effect will be directly reflected in profits. Despite aggressive marketing, the estimated operating profit margin is expected to be 19.7% in 2025 and 21.1% in 2026."

The researcher said, "In a situation where the advertising and commerce industries overall are sluggish, it is positive that Naver is driving performance growth through its own business restructuring," and added, "With commerce performance growth confirmed this year, the upward trend in stock price is expected to continue, and accordingly, it is recommended as the top pick within the internet sector."

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