[Click eStock] "NHN Hanguk Cyber Payment, Growth Expected Amid Online Payment Boom"

Korea Investment & Securities Issues 'Buy' Rating and 98,000 KRW Target Price... Closing Price on 21st at 68,700 KRW

[Asia Economy Reporter Kum Bo-ryeong] An analysis has emerged that NHN Korea Cyber Payment will grow further thanks to the boom in online payments.

According to Korea Investment & Securities on the 22nd, NHN Korea Cyber Payment is a leading domestic electronic financial company engaged in electronic payment gateway (PG), value-added network (VAN), and online-to-offline (O2O) businesses. To expand beyond the existing business model of providing PG and VAN services and collecting fees, the company is strengthening new businesses such as overseas payments, O2O services, and the development of simple payment systems.

As the online payment boom continues, NHN Korea Cyber Payment is expected to benefit from it. Jeong In-mook, a researcher at Korea Investment & Securities, said, "As the payment market rapidly transforms into non-face-to-face services, the e-commerce market, which records an annual growth rate in the 20% range, has additional growth potential. With the expansion of the e-commerce market, the sales of NHN Korea Cyber Payment, the No. 1 company in the PG and online VAN sectors, are also expected to structurally increase." He added, "In particular, as the transaction amount through the representative new business, the overseas payment sector, increases, the operating profit margin is improving, and the O2O sector is also rapidly increasing new merchant contracts, so it is estimated that it will contribute to profits in earnest from 2022, when a turnaround to profitability is expected."

Korea Investment & Securities gave NHN Korea Cyber Payment a 'Buy' investment opinion with a target price of 98,000 KRW. The closing price on the 21st was 68,700 KRW. Researcher Jeong said, "Considering the expansion of the e-commerce market and new business growth, it has sufficient valuation appeal as a leading company in the fintech industry."