[Click eStock] "Webcash, Earnings Growth Expected with Fintech Acceleration"

Hana Financial Investment Issues 'Buy' Investment Opinion and Sets Target Price at 73,000 Won... Closing Price on 22nd at 56,200 Won

[Asia Economy Reporter Kum Boryeong] Thanks to the acceleration of fintech brought about by the novel coronavirus infection (COVID-19), it is analyzed that Webcash's performance will continue to grow.

On the 25th, Hana Financial Investment gave a 'Buy' rating for Webcash. The target price was raised from the previous 60,000 KRW to 73,000 KRW. On the 22nd, Webcash's closing price was 56,200 KRW.

The fintech era is being accelerated due to COVID-19. The proportion of online payments has already significantly increased. General face-to-face financial services such as insurance and securities are also rapidly shifting to non-face-to-face (untact) methods. In addition, the government mentioned last month that it would expedite the funds of the 'Fintech Innovation Fund' created with the participation of banks and financial-related institutions.

Kim Doohyun, a researcher at Hana Financial Investment, said, "In this trend, the influence of Webcash, a domestic B2B (business-to-business) fintech leader, is expected to grow further. In the first quarter, sales were 14 billion KRW and operating profit was 2.3 billion KRW. Although sales decreased by 7.8% compared to the previous year, operating profit increased by 43.8%, showing profit growth due to the acceleration of fintech transition. Webcash has solution products segmented according to company size. And in these fields, there are no competitors, so it is dominating the market. The B2B fintech market adoption rate is only about 20% now. Therefore, if Webcash's solutions are distributed up to about 30% adoption rate, even if new competitors appear in the future, it is judged that they will not have a significant impact," he analyzed.

Hana Financial Investment estimated Webcash's performance this year to be sales of 69.4 billion KRW and operating profit of 12.8 billion KRW. These figures represent increases of 13.4% and 37.6%, respectively, compared to the previous year.