[Featured Stock] KG Mobilians, Amazon-11st Joint Service Transaction Volume Expected to Surge

[Asia Economy Reporter Hyungsoo Park] KG Mobilians is showing strong performance. The analysis that the current stock price is undervalued seems to have influenced the stock price.

As of 9:32 AM on the 5th, KG Mobilians is trading at 10,600 KRW, up 6.75% compared to the previous trading day.

Hana Financial Investment predicted that KG Mobilians would benefit from Amazon starting a joint service in the Korean market from the third quarter through a strategic partnership with 11st.

Choi Jae-ho, a researcher at Hana Financial Investment, explained, "11st is one of the 'Top 10' main clients," and "KG Mobilians receives more than 50% of the transaction amount from 11st as fees."

He added, "The increase in 11st's transaction volume due to Amazon's entry into the domestic market will lead to a rise in KG Mobilians' transaction volume," and "The transaction volume for 11st, which was about 10 billion KRW per month on average, is expected to grow rapidly."

Furthermore, he analyzed, "Paying attention to the relationship between KG Mobilians and NAVER," and "a friendly relationship was formed due to the absorption merger with KG Allat last year." He emphasized, "The company with the highest transaction volume per single merchant is undoubtedly NAVER," and "The volume for NAVER accounted for 53% last year."

Researcher Choi said, "Out of NAVER's annual mobile micropayment transaction volume of about 750 billion KRW last year, KG Mobilians handled more than 400 billion KRW," and "This year, it is expected to expand to about 640 billion KRW, approximately 80% of the transaction volume."

It is estimated that KG Mobilians will achieve sales of 334.5 billion KRW and operating profit of 55.1 billion KRW this year, which are increases of 24.3% and 20.6%, respectively, compared to last year.

Researcher Choi said, "This is the first year that the credit card PG sector reflects the full effect of the mobile micropayment limit increase and the KG Allat absorption merger," and "The OPM of the mobile micropayment PG sector and the credit card (KG Allat) PG sector are expected to be 30% and 6.8%, respectively."