[Click eStock] "Ecomarketing Needs New Business Growth for Further Upside... Target Price Raised"

Target Price Raised by 25% from Previous Level

On September 2, NH Investment & Securities raised its target price for Ecomarketing from 10,000 won to 12,500 won, stating that any further upside will depend on whether the company's new business (business boosting) can achieve a stable recovery in performance. The investment opinion remains 'Hold'.

Lee Hwajeong, a researcher at NH Investment & Securities, commented, "It is encouraging that the introduction of artificial intelligence (AI) agents has led to improved operational efficiency and enhanced quarterly earnings stability in the core business, but these expectations have already been reflected in the share price." She added, "To secure additional upside, it is now necessary to see meaningful performance growth in the business boosting segment. The company has already demonstrated its global marketing capabilities through cases such as Andar and Fingersuit, but it is essential to achieve tangible monetization." She continued, "We raised the target price by 25% compared to the previous level, mainly due to an upward revision of the target operating value for the advertising agency segment."

Ecomarketing's third-quarter results for this year are expected to be in line with market forecasts. Lee explained, "For the third quarter on a consolidated basis, we expect revenue of 131.7 billion won, up 31% year-on-year, and operating profit of 17.8 billion won, up 16%, which matches the raised consensus (the average of brokerage forecasts). This is due to improved efficiency in the advertising agency business and the high season for media commerce."

Operating profit for the advertising agency segment in the third quarter is projected to reach 9.9 billion won, a 26% increase year-on-year. Lee analyzed, "The leverage effect from pre-investment in personnel related to the introduction of AI agents is now materializing. Despite the traditional off-season, the expansion of new campaigns is driving revenue growth, which should result in continued strong performance."

Operating profit in the media commerce segment is estimated to increase by 5% to 7.9 billion won. Lee stated, "While the entry of major products such as athleisure and nail tips into their peak season is expected to drive top-line growth, the full-scale entry of Andar into the U.S. market will likely limit profit growth due to the burden of initial marketing costs."

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