[Click eStock] "Galaxia Moneytree, Coupang Payment Amount Increase and Cryptocurrency Value Rise Lead to Profit Surge"

[Asia Economy Reporter Hyungsoo Park] Research Alom forecasted on the 15th that Galaxia Moneytree's electronic payment business division will re-enter a growth trend. It suggested a target stock price of 6,500 KRW.

Galaxia Moneytree is a comprehensive financial platform company established in 1994. As a subsidiary of the Hyosung Group, it operates electronic payment businesses (mobile micropayments, credit card payments, etc.), O2O businesses (mobile department store gift certificates, mobile coupons, convenience store prepaid payments, etc.), and others (overseas, Moneytree, cryptocurrency, etc.).

Choi Seonghwan, Senior Researcher at Research Alom, explained, "Due to the cleanup of delinquent clients and a surge in transaction volumes from 'Coupang' and 'Baedal Minjok,' the electronic payment business division is expected to re-enter a growth trend this year," adding, "We calculated the appropriate stock price at 6,500 KRW by applying a target PER of 40 times to the arithmetic average EPS of 162 KRW for 2021-2022."

According to the Statistics Korea announcement, last year, domestic online shopping transaction volume reached 161.1 trillion KRW, a 19.1% increase from the previous year. Last year, Galaxia Moneytree's electronic payment business revenue was 62.9 billion KRW, a 9.4% decrease compared to the previous year. Among Galaxia Moneytree's major client business sectors, companies related to travel, leisure, and culture account for a significant portion.

Researcher Choi analyzed, "Galaxia Moneytree cleaned up all delinquent franchise stores last year, and the COVID-19 situation is expected to improve in the second half of this year," adding, "Performance improvement is anticipated."

Research Alom estimated that Galaxia Moneytree will achieve an operating profit of 10 billion KRW this year, a 33.3% increase from the previous year. Sales are expected to increase by 22.0% to 99.1 billion KRW.

Researcher Choi stated, "The electronic payment business division, which accounts for the highest sales proportion, is expected to show growth again from the first quarter of this year," and assessed, "It is positive that the payment amount from Coupang, one of Galaxia Moneytree's top 5 electronic payment clients, is surging."

The comprehensive financial platform 'Moneytree,' launched in 2017, is also expected to grow. Moneytree is the only platform capable of complex payments combining 'Zero Pay' and points, and it allows applications for emergency disaster relief funds, currently exceeding 2.6 million users.

Researcher Choi said, "With the by-elections for the Seoul and Busan mayors underway, it is understood that the majority of major candidates support expanding disaster relief payments," adding, "The expansion of support funds is expected to lead to an increase in Zero Pay payment amounts, positively impacting Moneytree's performance improvement."

The surge in Bitcoin prices, drawing attention to cryptocurrencies, was also identified as a positive factor. It is expected to be a stock price momentum for Galaxia Moneytree, the issuer of 'Jopsal.'

Researcher Choi said, "Galaxia Moneytree, as a cryptocurrency operator, successfully issued 'Jopsal (XTL)' at the end of last year," adding, "It is the industry's first to enable exchanges from points and gift certificates to cryptocurrency."