[Featured Stock] HectoFinancial, 50% Upside Potential in Stock Price... "Global Business Performance Becoming Visible"

Hecto Financial is showing strength. It appears that securities firms' analysis expecting the visualization of global business has influenced this.

As of 9:57 AM on the 16th, Hecto Financial was trading at 17,230 KRW, up 330 KRW (1.95%) compared to the previous trading day.

Hyunwoo Park, a researcher at Shinhan Investment Corp., stated, "The stock price of PG companies ultimately correlates with expectations for the growth of Q (transaction amount)," and presented Hecto Financial, whose global business such as overseas settlement solutions is becoming visible, as his top pick.

He explained, "Based on experience in handling large-scale account traffic, it is advantageous to respond to new businesses following improvements in e-commerce and PG systems," adding, "The overseas settlement solution, which is attracting market attention, is expanding its customer base."

Shinhan Investment Corp. calculated a target stock price of 26,000 KRW for Hecto Financial by applying a 12-month forward earnings per share of 1,943 KRW and a target price-earnings ratio (PER) of 13.3 times, representing a 53.8% increase from the current price. Considering the improvement in sector investment sentiment due to interest rate cuts and new business momentum, the analysis suggests there is sufficient upside potential.

He said, "While large PG companies have mainly focused on signing contracts with overseas merchants entering the domestic market, Hecto Financial is concentrating on foreign currency net settlement for global platforms and domestic seller settlements," forecasting that overseas settlement services will drive transaction amount growth. Hecto Financial began providing net settlement solutions to AliExpress at the beginning of the year and is expanding its overseas customer base.

Along with this, Shinhan Investment Corp. recently commented on PG and e-commerce system improvements, stating, "Although many electronic financial companies hold prepaid business licenses, ultimately the capability to manage large amounts of prepaid funds is crucial," emphasizing that Hecto Financial has a competitive edge over other companies in large-scale account traffic processing capabilities and risk management skills.