[Click eStock] "Incross, 'TDeal' Growth Acceleration Expected"

Kiwoom Securities Report

[Asia Economy Reporter Minji Lee] Kiwoom Securities maintained its buy rating and target price of 70,000 KRW for Incross on the 9th, based on the expectation of improved performance driven by the growth of Tdeal.

Incross's first-quarter revenue is expected to reach 9.5 billion KRW, a 40% increase compared to the same period last year. It is anticipated that media rep and Tdeal generated revenues of 6.6 billion KRW and 1.3 billion KRW, respectively. Operating profit is projected to have grown 102% year-on-year to 3.3 billion KRW during the same period.

Tdeal is expanding into a new type of market by utilizing internalized big data combined with text messaging and commerce. Unlike other commerce platforms, it can adopt a slimmed-down commission structure due to lower cost burdens related to inventory and operations. Namsoo Lee, a researcher at Kiwoom Securities, explained, “As a co-growth model involving consumers, sellers, and the platform, consumers enjoy the lowest prices, sellers bear reasonable commission fees, and the platform grows through deal matching, which will organically lead to transaction expansion.”

With the growth of digital content, the trend of growth in related digital advertising marketing is expected to continue. Growth in the media rep sector is also expected to continue, serving as a cash cow for the company. The Tdeal model targeting mobile phone users has shown steady performance improvements since its launch, despite the absence of full-scale platform marketing. Researcher Namsoo Lee stated, “Incross’s business combined with smartphones will establish itself as a sustainable growth model,” adding, “It will achieve more advanced advertising and commerce results by integrating with AI.”

This year, revenue is forecasted to reach 55.2 billion KRW and operating profit 25.6 billion KRW, increasing 32% and 72% respectively compared to the previous year. Once brand advertising for Tdeal begins, new customer inflows are expected, leading to expanded repurchases and sales by consumers and sellers, thereby solidifying the business domain. The researcher analyzed, “Tdeal’s performance will reach around 10 billion KRW,” and “It will create synergy with the growing media rep sector alongside digital content growth.”