[Click eStock] New Businesses and Overseas Expansion... Can KakaoBank Achieve a Higher Valuation?

NH Investment & Securities has maintained its target price for KakaoBank at 31,500 won and its recommendation to "Buy."

On May 21, Jeong Jun-seop, a researcher at NH Investment & Securities, stated, "As the government is clearly strengthening household debt management, the growth of household loans is inevitably expected to stagnate for the time being. However, KakaoBank is seeking new growth drivers, such as overseas expansion and new business initiatives."

Researcher Jeong explained, "KakaoBank has entered Indonesia and Thailand, and its Indonesian Superbank has already produced visible results, such as capital gains from its stock market listing. The company is also pursuing a new entry into Mongolia in Central Asia beyond Southeast Asia, which is expected to continue serving as a growth engine."

He added, "The ongoing acquisition of a capital company as a new business line is also expected to become a new growth driver. The synergy from KakaoBank providing a high credit rating, which will help reduce funding costs, combined with the capital company investing in high-yield assets, is expected to be significant."

Researcher Jeong noted, "While the profit contribution from overseas expansion and new business growth is unlikely to materialize in the short term, in the long term these factors could significantly boost KakaoBank's currently low leverage. If meaningful financial results are achieved, the company could also command a higher valuation as a growth stock."

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