[Featured Stock] Hecto Financial's Overseas Business on Track... "Competitiveness Highlighted"

Hecto Financial is showing strong performance. An analysis by a securities firm, predicting that its overseas business will fully get on track, influenced this trend.

As of 9:52 AM on the 8th, Hecto Financial was trading at 16,780 KRW, up 460 KRW (2.82%) compared to the previous trading day.

Hecto Financial's provisional sales for the third quarter recorded 39.4 billion KRW, and operating profit was 4.1 billion KRW. Sales stagnated due to a contraction in e-commerce consumer sentiment. However, operating profit increased thanks to growth in high-margin internal account payments and mobile payment services.

On the day, KB Securities researcher Kim Hyun-gyeom explained, "The key point is that unlike other PG (Payment Gateway) companies, there were almost no losses related to refunds from the T-mep incident, and net profit grew due to increased foreign exchange gains related to the new overseas service business."

It is evaluated that the overseas new service business, which was a growth point, has now fully gotten on track. Currently, AliExpress, the global short-form platform T, and the global game platform Steam are major overseas merchants. Furthermore, as early as next month or by the first quarter of next year at the latest, Amazon's general and advance settlement services for domestic sellers are expected to begin. The growth pace of the overseas service business is anticipated to accelerate further.

Researcher Kim said, "According to the revised Electronic Financial Transactions Act enacted in September this year, representative merchants will be subject to mandatory separate management of prepaid funds after one year, and general prepaid businesses after six months, which is expected to significantly increase demand for agency services."

He analyzed, "Demand for safe payment settlement is expected to rise going forward, and Hecto Financial's differentiated competitiveness will be highlighted, as it holds all PG and escrow licenses, the nation's top capacity for handling large volumes of account traffic, and the capability to apply virtual account escrow functions."