[Click eStock] "KakaoPay, Payment Amount Increase Related to Reopening"

[Asia Economy Reporter Hwang Yoon-joo] Kyobo Securities analyzed on the 3rd that the increase in payment amounts related to reopening offset the market slowdown in the payment sector for Kakao Pay. Accordingly, they maintained a 'Buy' investment rating and a target price of 110,000 KRW.

Dongwoo Kim, a researcher at Kyobo Securities, stated regarding the second-quarter earnings, "The growth slowdown in the front-end market, which had a large proportion of existing transaction volume (TPV), was largely offset by the increase in payment amounts related to reopening such as travel and mobility," explaining the basis for maintaining the investment rating and target price.

Researcher Kim explained, "Revenue TPV, centered on payment and financial services that directly contribute to sales, increased by 27%, outperforming the overall TPV growth (payment +35%, finance +5%)."

Despite a decrease in delivery and commerce transaction amounts, the payment service sales performed well at 93.8 billion KRW, up 35.7% year-on-year, due to the effect of diversifying the merchant portfolio.

Researcher Kim also analyzed, "Although the growth in credit loan brokerage sales in the third quarter is limited due to strengthened DSR regulations, sales growth in the loan brokerage sector is expected through continuous coverage expansion in the second half of the year, including jeonse deposit loans and business loans."

He added that it is also positive that revenue contributions such as exchange fees and trading fees will begin from the MTS service through the transition to paid service starting in the third quarter. He evaluated, "Along with this, it is encouraging that specific revenue contribution methods of Kakao Pay Securities, such as the launch of credit lending services and stock trading via KakaoTalk in the second half of the year, have been presented."