[Click eStock] "NHN Hanguk Cyber Payment, Sustaining High Growth Centered on Online"

Shinyoung Securities Issues 'Buy' Investment Opinion and Sets Target Price at 90,000 Won... Closing Price on 12th at 66,200 Won

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that NHN Korea Cyber Payment continues to sustain high growth centered on online payments.

According to Shin Young Securities on the 13th, NHN Korea Cyber Payment's consolidated sales for the third quarter amounted to 159.2 billion KRW, and operating profit was 11.2 billion KRW. These figures represent increases of 41.5% and 31.5%, respectively, compared to the same period last year.

Yoon Euljung, a researcher at Shin Young Securities, explained, "Following the second quarter, the impact of the COVID-19 pandemic continued into the third quarter, and with the implementation of social distancing level 2.5 measures during the third quarter, offline payment business sales decreased by 1.7% compared to the previous year. On the other hand, due to the increase in e-commerce transaction volume, online payment business sales grew by 43.5% year-on-year, maintaining a high growth trend."

Steady overseas performance is being shown through contracts with global companies. NHN Korea Cyber Payment is rapidly increasing overseas partners centered on global platforms such as Apple, Tesla, and Google. Researcher Yoon stated, "With the steady growth of payment amounts on Apple and Google app stores, and the increase in the number of Tesla's completed vehicle sales, major overseas merchant transaction volumes continue to grow, thereby expanding NHN Korea Cyber Payment's sales as well. Overseas merchant transaction volume accounts for about 10% of the total transaction amount in the third quarter. Based on existing references, additional partnerships with large overseas partners are expected, and by the end of this year, the proportion of overseas merchants relative to the total annual transaction amount is projected to increase to about 15%."

Shin Young Securities gave NHN Korea Cyber Payment a 'Buy' investment rating and set a target price of 90,000 KRW. The target price was revised upward from the previous 80,000 KRW. The closing price on the 12th was 66,200 KRW.