[Click eStock] "Advertising Market Slump... Innocean, Target Price Down"

Daishin Securities lowered the target price for Innocean from 68,000 KRW to 61,000 KRW on the 19th. The investment rating was maintained as a buy.

Innocean is expected to record sales of 1.7 trillion KRW and an operating profit of 21.9 billion KRW in the first quarter of this year. Compared to the same period last year, sales increased by 3%, but operating profit decreased by 13%. This is interpreted as a base effect due to the advertising boom from the Beijing Winter Olympics held in the first quarter of last year. Compared to the previous quarter, sales dropped by 26%, and operating profit plummeted by 56%. This is also attributed to the base burden from the advertising boom during the Qatar World Cup in the fourth quarter of last year and the reduction in advertising spending by advertisers due to concerns about the economic downturn.

However, despite the sluggish advertising market, affiliate volume remains solid, and sales are expected to maintain a growth trend. Kim Hoejae, a researcher at Daishin Securities, said, "Sales growth of about 7% is expected due to the marketing impact of the Ioniq 6 launch in the Americas region, which accounts for more than half (53%) of the performance," but added, "Nevertheless, operating profit is expected to decline due to increased personnel recruitment last year to strengthen digital capabilities."