[Click e-Stock] "Incross: Low Valuation, High Performance Expectations"

Yuanta Securities analyzed on May 29 that Incross is expected to see improved performance this year. The firm did not provide an investment opinion or target price.

On a consolidated basis, Incross recorded first-quarter sales of 10.17 billion KRW, operating profit of 2.08 billion KRW, and net profit of 2.366 billion KRW, representing increases of 20.2%, 155.8%, and 86.6% respectively compared to the same period last year.
Kwon Myungjun, a researcher at Yuanta Securities, stated, "The year-on-year performance growth in the first quarter is significant," and explained, "Despite the overall sluggishness in the advertising industry in the first quarter of this year due to political issues, unlike last year, Incross still achieved growth."
Kwon added, "Many forecasting agencies expect this year's economic growth rate to slow compared to last year," and evaluated, "Given that the advertising market is linked to economic growth, Incross's performance growth is notable even though the advertising market is expected to be weaker than last year."
Performance improvement is expected to continue this year. Kwon emphasized, "Profitability improved last year despite agency receivables exceeding 6 billion KRW. If this issue does not recur this year, operating profit could improve by more than 30%," and noted, "The company is currently undervalued."
He further stated, "The major advertisers who drove first-quarter performance growth are expected to continue expanding their marketing," and explained, "This is because there are plans to increase new product launches and overseas expansion compared to last year."
He also explained, "Since May last year, AoR (Agency of Record) contracts began, which contributed to improved operating profit margin (OPM) in the second half of last year. Growth is expected through the acquisition of new clients within this year."
Additionally, he expects to see the effects of new business initiatives. He emphasized, "The company launched the Stellize platform business, which connects YouTubers and advertisers for PPL (product placement) ads," and added, "There are plans to expand through broader partnerships with MCM companies."

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