[Click eStock] "Kakao, Quality Growth Expected Again This Year"

DB Financial Investment Issues 'Buy' Rating and 540,000 KRW Target Price... Kakao Closing Price at 437,500 KRW on the 15th

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that Kakao will continue to sustain quality growth this year as well.

On the 18th, according to DB Financial Investment, Kakao's consolidated performance for the fourth quarter of last year is estimated at 1.2 trillion KRW in sales and 136.6 billion KRW in operating profit. Compared to the previous year, sales increased by 39% and operating profit by 72%.

Hwang Hyunjoon, a researcher at DB Financial Investment, stated, "Thanks to Talk Biz Board surpassing daily sales of 1 billion KRW in December last year, the year-end effect leading to expanded commerce and Pay transaction volumes, and the mobility sector's improvement due to increased taxi sales, the platform segment appears to have continued growing. The content segment is also expected to have driven sales growth in the fourth quarter through Page and Piccoma. Despite marketing expenses rising 124% year-on-year to 93 billion KRW due to this scale growth, profitability is expected to continue improving," he explained.

Growth is expected to continue this year as well. DB Financial Investment forecasts that Kakao's sales and operating profit will increase by 26% and 80%, respectively, compared to the previous year. Additionally, the initial public offerings (IPOs) of major subsidiaries such as Kakao Pay are also considered key points to watch.

Researcher Hwang analyzed, "Talk Biz Board is expected to expand P and Q, commerce aims for product differentiation through Mastige and Luxury, Pay is diversifying its business model alongside transaction volume growth, paid content continues to perform well in the global market, and mobility is improving profitability."

DB Financial Investment gave Kakao a 'Buy' investment opinion with a target price of 540,000 KRW. On the 15th, Kakao's closing price was 437,500 KRW. Researcher Hwang said, "Last year, Kakao's stock price rose 155% due to remarkable performance growth, the untact premium, and expectations for subsidiary IPOs. This year as well, with continued performance improvement and the story of rising value of held shares remaining valid, the upward trend in the stock price is expected to continue."