[Click eStock] "Seoul Auction Forms Q1 Bottom... Turnaround Potential Up"

Hanyang Securities analyzed on the 17th that Seoul Auction's second-quarter performance has returned to an upward trend, increasing the likelihood of a turnaround in the second half of the year.

Lee Joon-seok, a researcher at Hanyang Securities, stated in a report on the same day, "Second-quarter sales rose 41.5% year-on-year and 53.7% quarter-on-quarter," adding, "Since product sales revenue is also on the rise, the company's performance is likely to have bottomed out in the first quarter and is expected to turn around."

Researcher Lee also said, "The upward trend in art sales revenue is expected to continue into the third quarter, and various events that will invigorate the market are awaiting in the second half of the year," noting, "In September, KIAF Seoul & Frieze Seoul are scheduled, and in November, an offline auction in Hong Kong will be held for the first time in four years. If this Hong Kong offline auction concludes successfully, such revenue is expected to occur quarterly starting next year."

He further noted, "The new business of art-backed loans generated approximately 1.06 billion KRW in revenue in the first half of the year," and predicted, "This business, which provides art-backed loans at an interest rate of 1% per month, will serve as a stable cash cow for the company in the future."

Additionally, he explained, "Financial authorities have presented legal guidelines and held legislative hearings related to Security Token Offering (STO) issuance this year," adding, "As STO becomes institutionalized, the art market will also perceive it as a positive momentum, and there is also anticipation for collaboration with the STO-related affiliate 'Seoul Auction Blue.'"

He added, "The stable recovery in the core business of art sales and auctions, along with the scalability of the new businesses of art-backed loans and STO, will serve as a foundation for the company's mid- to long-term growth."