[Click eStock] "Nasmedia, Mobile Platform Growth Momentum Expected to Continue"

DB Financial Investment Report

[Asia Economy Reporter Minji Lee] DB Financial Investment maintained its buy rating on Nasmedia on the 10th and set the target price at 37,000 KRW, down 13%.

In the second quarter, Nasmedia is expected to record sales of 37 billion KRW and operating profit of 9.6 billion KRW, representing growth of 25.6% and 19.1% respectively compared to the same period last year. Exposure-type advertising (DA) sales are predicted to grow 18.2% year-on-year due to market growth in the peak season and increased spending by advertisers in gaming and home appliances. Mobile platform sales are expected to grow 73.5% compared to a year ago, attributed to increased demand for performance-based ads such as reward and CPS advertising.

The mobile platform is expected to see 49% annual sales growth in the second half of the year due to increased demand for performance-linked ads. K-deal is anticipated to grow transaction volume this year by expanding marketing and adding gifting features. IPTV, which had been sluggish, is expected to recover performance with the introduction of addressable TV ads and real-time Qtoon ads. Outdoor advertising is also expected to reflect new orders for subway video ads. Considering these factors, annual sales are projected at 149.3 billion KRW and operating profit at 38.8 billion KRW, up 20.3% and 18.1% year-on-year, respectively.

Shin Eun-jung, a researcher at DB Financial Investment, said, “The benefits from DA market growth, high growth from new mobile platform products, and expectations for new businesses such as K-deal remain valid,” adding, “The gap with the previous target price (43,000 KRW) is presented as 7,000 KRW.”